Norfolk Southern Corporation (NYSE:NSC) railroad confirms its CEO is under investigation for possible misconduct.
In a statement Sunday night the railroad said the Board of Directors is probing whether conduct by CEO Alan Shaw is "inconsistent with the company's Code of Ethics and company policy."
The statement didn't address the focus of the probe but it centers around an inappropriate relationship with another employee, CNBC reported.
The company says a law firm will conduct an independent investigation of the allegations.
The statement said the company and the board cannot comment further until the investigation is complete.
Shaw had led Atlanta-based Norfolk Southern since May 2022 and earlier this year withstood an attempt by activist investor Ancora Holdings Group to replace him as CEO.
Ancora reportedly cited Shaw's handling of the 2023 train derailment that spewed toxic chemicals in East Palestine, Ohio, and cost Norfolk Southern at least $1.1 billion, the poor performance of its stock and what Ancora called Shaw's flawed business strategy.
Shaw received $13.4 million in total compensation last year, including $1.1 million in salary and $10 million in stock and option awards, CNN reported in February.
Norfolk Southern, founded in 1827, employs about 20,000 workers and operates in 22 states and the District of Columbia, according to its website.
The company serves 800 industrial sites, 175 warehouses and 43 ports connected by more than 19,500 miles of track.
Its stock price closed Friday at $250.01 per share, down about 1.1%.
