Norfolk Southern CEO Alan Shaw replaced by CFO amid alleged affair with legal chief

Published: Sep 11, 2024 Duration: 00:03:11 Category: News & Politics

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>>> AFTER A HEADLINE FILLED WEEK NORFOLK SOUTHERN HAS OUSTED ALAN SHAW WANT TO GET TO MORGAN BRENNAN WITH DETAILS ON THE STORY. >> TERMINATING ALAN SHAW, APPOINTING THE CFO TO THE CEO ROLE THAT IS EFFECTIVE IMMEDIATELY. THIS AFTER PRELIMINARY FINDINGS FOUND SHAW VIOLATED COMPANY POLICIES ENGAGING IN A CONSENSUAL RELATIONSHIP WITH THE CHIEF LEGAL OFFICER NABANITA NAG WHO HAS BEEN LET GO. THE DECISION COMING DAYS AFTER CNBC BROKE NEWS OF THE INVESTIGATION. IT ENDS A TOUGH TWO-YEAR TENURE FOR SHAW WHO TOOK THE HELM AMID INTENSE LABOR NEGOTIATIONS WITH UNIONS, THAT SPANNED 2023 OHIO'S TOXIC DERAILMENT AND CLEANUP EFFORTS, SITTING WITH SHAW IN EAST PALESTINE THAT RESULTED IN A $600 MILLION SETTLEMENT WITH RESIDENTS AND TRIGGERED SCRUTINY OF SAFETY REGULATIONS AND EARLIER THIS YEAR PROXY FIGHT WITH ANCHOR RA WHICH FOUGHT FOR SHAW'S OUSTER AND A MAJORITY OF BOARD SEATS THAT RESULTED IN WE'LL CALL IT A PARTIAL VICTORY WITH THREE BOARD SEATS TURNED OVER SHAW KEEPING HIS JOB AT THAT POINT. WHAT'S NEXT? NORFOLK SOUTHERN REITERATING FULL-YEAR GUIDANCE AS IT LOOKS TO IMPROVE SERVICE AND MARGINS THE BOARD CHAIR SAYING IN THE RELEASE THAT MARK EMBODIES OUR CORPORATE VALUES AND IS A CHAMPION OF OUR SAFETY CULTURE AND CLOSE PARTNERSHIP WITH OUR ACCOMPLISHED COO THEM CONTINUE TO IMPROVE THE OPERATING PERFORMANCE AND CLOSE THE MARGIN GAP WITH PEERS. ANALYSTS EXPECT TO SEE MINIMAL DISRUPTIONS. AS FOR COMPENSATION WITH SHAW SPECIFICALLY FIRED FOR CAUSE, HE WILL BE FORFEITING ANY SEVERANCE PACKAGE, STOCK AWARDS AND PENDING THE OUTCOME OF THAT ONGOING INVESTIGATION, CLAWBACKS ON COMPENSATION ARE NOT OFF THE TABLE. SO SHARES OF NORFOLK SOUTHERN DOWN FRACTIONALLY, GUYS, AND THIS IS ONE THAT WE WILL CONTINUE TO WATCH, ESPECIALLY BECAUSE YOU'RE GOING TO GET THE NEW CEO, THE FIRST COMMENTS FROM THE NEW CEO AT MORGAN STANLEY'S LAGUNA CONFERENCE TOMORROW >> WHERE DO THEY STAND WITH THE ACTIVIST PRESSURE AND THE SORT OF NEW CHALLENGES FACING THIS NEW CEO? >> I THINK THAT'S A KEY QUESTION HERE ANCHORA NOT GIVING A COMMENT BUT, OF COURSE, AS I MENTIONED THIS PROXY FIGHT, THREE OF ANCHOR RA'S PICKS FOR THE BOARD WERE SUCCESSFUL IN TAKING OVER THOSE POSITIONS ON THE BOARD AND GIVEN THE FACT THAT THIS INVESTIGATION HAS COME TO LIGHT CERTAINLY WITH SOME OF THE REPORTING WE'VE SEEN OUT THERE IN THE LAST COUPLE DAYS FROM MY OWN REPORTING, IT'S VERY ACCURATE, I THINK, THE FACT THAT THEY ARE INVOLVED WITH THE BOARD AND THEY'RE KEY SHAREHOLDER IN THE COMPANY, REALLY SPEAKS TO HOW AND WHY THIS CAME TO LIGHT AND HOW QUICKLY ALL OF THIS HAS HAPPENED BUT NORFOLK SOUTHERN IS VERY, VERY CLEAR, THEY'VE BEEN VERY CLEAR, THEY HAVE REWRITEN AND SPECIFIED THOSE RULES IN REPEAT YEARS ABOUT THESE TYPES OF RELATIONSHIPS AND THAT SPEAKS TO WHY SHAW WAS FIRED FOR CAUSE I WOULD NOTE NAG WAS NOT FIRED FOR CAUSE. SHE WILL LIKELY, BASED O

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