Statement regarding investigation of alleged misconduct

Rhea-AI Summary

Norfolk Southern (NYSE: NSC) has announced that its Board of Directors has initiated an investigation into allegations of potential misconduct by CEO Alan Shaw. The allegations suggest behavior inconsistent with the company's Code of Ethics and policies. The Board's Audit Committee has retained a law firm to conduct an independent investigation, emphasizing the company's commitment to thorough examination of all relevant facts. Norfolk Southern maintains high standards for all team members and has resources in place for anonymous reporting of concerns, including an Ethics & Compliance Hotline. To ensure a fair process, the company and Board are refraining from further comment until the investigation concludes.

Positive

• None.

Negative

• CEO Alan Shaw under investigation for potential misconduct
• Allegations suggest violation of company's Code of Ethics and policies
• Potential reputational damage to Norfolk Southern
• Possible leadership instability during investigation period

News Market Reaction

+2.72%

1 alert

+2.72% News Effect

On the day this news was published, NSC gained 2.72%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

ATLANTA, Sept. 8, 2024 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) acknowledges that its Board of Directors has opened an investigation into allegations of potential conduct by CEO Alan Shaw that is inconsistent with the company's Code of Ethics and company policy.

Norfolk Southern holds all its team members to the highest standards. In line with the company's Code of Conduct and company policy, allegations of misconduct are thoroughly investigated. The code also includes resources for employees to anonymously report concerns, including through the Ethics & Compliance Hotline.

The Board of Directors' Audit Committee has retained a law firm to conduct an independent investigation of the allegations and is committed to a complete and reliable examination of all pertinent facts. To ensure a fair investigation, the company and the Board cannot comment further until the investigation is complete.  

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a customer-centric and operations-driven freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods, and Norfolk Southern originates more automotive traffic than any other Class I Railroad. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports in the Gulf of Mexico and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

 

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SOURCE Norfolk Southern Corporation

FAQ

What is Norfolk Southern (NSC) investigating regarding CEO Alan Shaw?

Norfolk Southern is investigating allegations of potential misconduct by CEO Alan Shaw that may be inconsistent with the company's Code of Ethics and policies.

Who is conducting the investigation into NSC's CEO Alan Shaw?

The Board of Directors' Audit Committee has retained an independent law firm to conduct the investigation into the allegations against CEO Alan Shaw.

How is Norfolk Southern (NSC) ensuring a fair investigation process?

Norfolk Southern is ensuring a fair investigation by having an independent law firm conduct the examination and refraining from further comment until the investigation is complete.

What resources does Norfolk Southern (NSC) provide for reporting ethical concerns?

Norfolk Southern provides resources for employees to anonymously report concerns, including an Ethics & Compliance Hotline, as part of their Code of Conduct.