Report: Norfolk Southern CEO Alan Shaw accused of inappropriate workplace relationships

The CEO of freight railroad Norfolk Southern was accused of having an inappropriate relationship at work, according to a report on Sunday.

The company's board is investigating the allegations against Alan Shaw with the help of outside legal counsel, CNBC reported, citing unnamed people familiar with the matter.

The investigation is still in its early stages and it is possible that no wrongdoing occurred, CNBC reported.

According to CNBC, neither Shaw, several directors nor company spokespeople immediately responded to requests for comment.

Shaw has led Atlanta-based Norfolk Southern since May 2022 and resisted an attempt by activist investor Ancora Holdings Group to replace him as CEO earlier this year.

Ancora reportedly cited Shaw's handling of the 2023 train derailment that released toxic chemicals in East Palestine, Ohio, and cost Norfolk Southern at least $1.1 billion, as well as the stock's poor performance and what Ancora called Shaw's flawed business strategy.

As CNN reported in February, Shaw received total compensation of $13.4 million last year, including $1.1 million in salary and $10 million in stock and option awards.

If Shaw resigns or is fired, his position would likely be filled temporarily by the company's COO John Orr or Chief Financial Officer Mark George, CNBC reported.

Founded in 1827, Norfolk Southern employs about 20,000 people 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, which are connected by a rail network of over 31,250 kilometers.

The stock price closed at $250.01 per share on Friday, down about 1.1 percent.