By (Reuters) -Norfolk Southern’s board is examining allegations that Chief Executive Alan Shaw engaged in an inappropriate workplace relationship, CNBC reported on Sunday, citing three people familiar with the matter.
Norfolk Southern (NYSE:NSC) did not immediately respond to a Reuters’ request for comment.
The investigation is in its early stages, and it is possible that no misconduct may be uncovered, the report said, adding that the railroad operator is working with outside legal advisers on the probe.
In May, activist investor Ancora won three board seats at the railroad operator but failed to oust the railway’s chief executive.
Ancora had proposed investors push Alan Shaw off the board and elect Jim Barber, a former chief operating officer at UPS, so that he could eventually replace Shaw as CEO. They also proposed Jamie Boychuk to become the chief operating officer.
Shaw joined the company in May 2022, replacing Jim Squires.
The hedge fund argued new blood was needed to improve financial and operational metrics and said it would continue to hold the company accountable for any future railway accidents or underperformance.
The Atlanta, Georgia-based company reported operating revenue of $3 billion in the second quarter, up 2% from last year, narrowly missing analysts’ estimates of $3.04 billion.
