Alan Shaw became CEO of Atlanta-based Norfolk Southern less than three years ago. He was terminated Wednesday, just three days after an internal investigation was made public.
The Atlanta-based railroad has been in crisis mode for more than a year and a half, capped off by the termination of Shaw this week.
Here’s a rundown of key dates:
May 2022: Shaw, who had been chief marketing officer, becomes CEO of the company. Shaw succeeded Jim Squires.
Feb. 3, 2023: Around 8:55 p.m., 38 cars of an eastbound Norfolk Southern train derailed in East Palestine, Ohio, including 11 tank cars carrying hazardous materials that ignited and set fire to another 12 cars that had not derailed, according to the National Transportation Safety Board. There were no casualties. First responders established a 1-mile evacuation zone affecting as many as 2,000 residents. A later decision to perform a controlled burn of chemicals in some of the cars created a towering column of smoke and fears of environmental disaster.
March 2023: Norfolk Southern CEO Shaw fails to show up at a town hall meeting in East Palestine, where residents raised concerns about their health and safety from the effects of the derailment and the chemicals released.
Days later, Shaw testifies before a U.S. Senate committee, saying he is “terribly sorry” for the derailment. “We’re going to be there for as long as it takes to help East Palestine thrive and recover,” Shaw said. Lawmakers called out the company for its safety practices and its lack of transparency after the wreck.
June 2023: The National Transportation Safety Board holds a hearing where officials face questions on why they decided to do a controlled burn of vinyl chloride in tank cars, which caused many of the environmental and health concerns in the community. Officials said they had concerns about a potential catastrophic explosion. But OxyVinyls, the company that shipped the vinyl chloride, said it believed the chemical was stable.
February 2024: Activist investment firm Ancora Holdings Group, based in Ohio, announces an effort to replace management of Norfolk Southern. Ancora nominates a slate of potential board members and proposes former UPS COO Jim Barber take over as CEO of the railroad.
April 2024: Norfolk Southern reaches a $600 million settlement to resolve a consolidated class action lawsuit filed against the railroad after the East Palestine derailment.
Credit: arvin.temkar@ajc.com
Credit: arvin.temkar@ajc.com
May 2024: Norfolk Southern agrees to a more than $310 million settlement of federal investigations into the East Palestine derailment. The settlement reached with the U.S. Environmental Protection Agency and U.S. Department of Justice comes after EPA Administrator Michael Regan last year said Norfolk Southern would be held accountable for its actions.
Ancora gets three new board members elected to Norfolk Southern’s board — but failed to gain majority control of the board and effect a plan to replace Shaw.
Sept. 8, 2024: Norfolk Southern says its board of directors is investigating allegations of misconduct by Shaw.
Wednesday: Shaw is terminated for cause effective immediately, and replaced by Mark George, the company’s chief financial officer. Shaw was terminated after preliminary findings from an “ongoing investigation” determined he violated company policies by engaging in a consensual relationship with the company’s chief legal officer, according to Norfolk Southern. The chief legal officer is also terminated.
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