(Reuters) – Norfolk Southern’s board of directors is reviewing allegations that Chief Executive Alan Shaw engaged in an inappropriate relationship in the workplace, CNBC reported on Sunday, citing three people familiar with the matter.
Norfolk Southern The New York Stock Exchange (NYSE:) did not respond to a Reuters request for comment.
The report said the investigation is in its early stages and it is likely that no misconduct will be uncovered, adding that the railway operator is working with external legal advisers on the investigation.
In May, activist investor Ankura won three seats on the rail operator’s board, but failed to oust the company’s CEO.
Ankura suggested to investors that Shaw be removed from the board and that Jim Barber, former chief operating officer of UPS, be elected to eventually replace Shaw as CEO. They also suggested that Jamie Boychuk become chief operating officer.
Shaw joined the company in May 2022, replacing Jim Squires.
The hedge fund firm said new blood was needed to improve financial and operational metrics, adding that it would continue to hold the company liable for any future rail accidents or poor performance.
The Atlanta, Georgia-based company reported operating revenue of $3 billion in the second quarter, up 2% from a year ago and slightly below analysts’ estimates of $3.04 billion.