— Jeff Ward, Lehigh Valley News Briefs
Norfolk Southern, the railroad that suffered two derailments in the Lehigh Valley this year, is investigating the conduct of Chief Executive Alan Shaw.
“Norfolk Southern Corporation (NYSE: NSC) acknowledges that its Board of Directors has opened an investigation into allegations of potential conduct by CEO Alan Shaw that is inconsistent with the company’s Code of Ethics and company policy,” according to a statement posted by the Atlanta-based railroad late Sunday.
The company’s board has retained a law firm to investigate. CNBC reported that the allegations are that Shaw was involved in “an inappropriate workplace relationship,” citing “people familiar with the matter.”
A Norfolk Southern train derailed in Bethlehem on July 5, near the Hill to Hill Bridge over the Lehigh River.
The bigger derailment involved a three-train wreck in Lower Saucon Township in March. Two locomotives wound up in the Lehigh River, and some diesel fuel was spilled into the water.
Norfolk Southern estimated the cost of that accident at $2.5 million.
CEO Shaw was paid $13.4 million in 2023.
Activist investor Ancora has tried to oust Shaw. Activist investors purchase stakes in companies and push for changes in management, operations, and sometimes seek a sale of the entire company.
Shares in Norfolk Southern were at $251.25, up $1.24 in early trading Monday.
Lehigh Valley News Briefs 