The CEO of the Norfolk Southern freight railroad has been accused of engaging in an inappropriate workplace relationship, according to a report Sunday.
The company's board of directors is investigating the allegations against Alan Shaw with the help of outside legal advisers, CNBC said, citing unidentified people familiar with the matter.
The probe is in its early stages and it's possible no misconduct has taken place, CNBC said.
Neither Shaw, multiple directors nor company spokespeople immediately returned requests for comment, according to CNBC.
Shaw had led Atlanta-based Norfolk Southern since May 2022 and earlier this year withstood an attempt by activist investor Ancora Holdings Group to replace him as CEO.
Ancora reportedly cited Shaw's handling of the 2023 train derailment that spewed toxic chemicals in East Palestine, Ohio, and cost Norfolk Southern at least $1.1 billion, the poor performance of its stock and what Ancora called Shaw's flawed business strategy.
Shaw received $13.4 million in total compensation last year, including $1.1 million in salary and $10 million in stock and option awards, CNN reported in February.
If Shaw were to resign or be fired, his job would likely be filled on an interim basis by the company's chief operating officer, John Orr, or chief financial officer Mark George, CNBC said.
Norfolk Southern, founded in 1827, employs about 20,000 workers 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 connected by more than 19,500 miles of track.
Its stock price closed Friday at $250.01 per share, down about 1.1%.
