Norfolk Southern CEO Alan Shaw replaced by CFO after alleged scandal

Norfolk South CEO Alan Shaw is stepping down with immediate effect after the board found he had a consensual relationship with legal director Nabanita Nag, the company said on Wednesday. He will be replaced by chief financial officer Mark George.

The company said that based on the board's preliminary investigation, Nag would also be dismissed.

CNBC first reported on the board's investigation on Sunday and reported on Wednesday that Nag was the focus of the probe. The company said Shaw was fired for cause.

“I am honored to take on this role and lead Norfolk Southern,” George said in a news release. Shaw did not immediately respond to a request for comment.

George served as Norfolk Southern's CFO for nearly five years and was instrumental in the company's efforts to fend off activist investor Ancora. Prior to that, he spent two decades in senior finance roles at Otis Elevator and United Technologies.

“The Board has full confidence in Mark and his ability to continue to meet our commitments to shareholders and other stakeholders,” Chairman Claude Mongeau said in the statement.

A representative for Ancora did not immediately respond to a request for comment.

The company announced that Jason Zampi will serve as interim CFO. Jason Morris, meanwhile, will serve as interim corporate secretary.

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