Norfolk Southern’s board is investigating whether CEO Alan Shaw had an inappropriate relationship with the company’s top-ranking lawyer, according to several people with direct knowledge of the board’s thinking, which could create a leadership vacuum at one of the country’s largest railroads.
The probe comes less than two years after a toxic derailment in East Palestine, Ohio, and the same year activist investor Ancora mounted a proxy fight at the $58 billion railroad.
The board’s focus on that other executive, chief legal officer Nabanita Nag, has not previously been detailed. Nag joined the company in 2020 as general counsel before being promoted to senior vice president in 2022 and elevated again just a few months later. She oversees a sizable portion of Norfolk’s operations — including government relations, communications and compliance.
Shaw and Nag did not return text messages and calls requesting comment.
Shares slipped about 2% on the news.
Meanwhile, labor leaders and top executives are …