Smart People Doing Dumb Things: Norfolk Southern CEO Fired for `Consensual Relationship’ With Colleague as Railroad Takes Strong Stand Against Hanky Panky

— Jeff Ward, Lehigh Valley News Briefs

Another episode in the endless series of “Smart People Doing Dumb Things.”

Norfolk Southern fired Chief Executive Alan H. Shaw on Wednesday for having a “consensual relationship” with the company’s chief legal officer.

That alleged hanky panky violated company policies against hanky panky. The independent members of the board of directors voted unanimously to take a strong stand against hanky panky. (Independent members are on the board but not employed by the company.)

The Atlanta-based railroad quickly noted that “Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations.” Norfolk Southern affirmed its earnings forecast.

The firing was related to what the board says was Shaw’s relationship with Nabanita C. Nag, the chief legal officer. Read about it all straight from Norfolk Southern, right here. Ms. Nag was also fired.

Norfolk Southern trains have derailed twice in the Lehigh Valley this year, and in March, that led to fuel being spilled into the Lehigh River. Meanwhile, the railroad has boasted of its safety record. The derailments were not an issue, as Norfolk Southern claims to be a leader in safety.

Maybe it is.

The new CEO is Mark R. George, who was the railroad’s chief financial officer.

The trains keep a rollin’, as the song goes.

Shaw’s departure may be a boost to Ancora Holdings, an activist investor that had challenged the company’s management.

Don’t worry about Alan H. Shaw, though. He was paid $13.4 million last year.

He’s going to be alright.