BREAKING: Norfolk Southern fires Shaw, appoints George president, CEO

Norfolk Southern Corp. yesterday announced its board has terminated President and CEO Alan Shaw "for cause" and appointed Mark George, the company's executive vice president and chief financial officer, as president and CEO effective immediately. George will also join the NS board.

The change in leadership comes in connection with preliminary findings from an ongoing investigation, announced earlier this week, that determined Shaw violated company policies by engaging in a consensual relationship with Nabanita Nag, the company's chief legal officer. Shaw's departure is unrelated to the company's performance, financial reporting and results of operations, according to an NS press release.

"The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," said NS Chairman Claude Mongeau. "Mark has played an integral role in our recent progress and brings decades of financial experience and strong operational expertise. He embodies our corporate values and is a champion of our safety culture. In close partnership with our accomplished COO, John Orr, they will continue to improve NS' operating performance and close the margin gap with peers."

George responded: "I look forward to my continued partnership with John and the entire Thoroughbred team as we further our progress on optimizing operations and serving our customers, while creating a safe and satisfying workplace and delivering enhanced value for our employees, customers, shareholders and communities."

In connection with George's appointment as CEO, Jason Zampi will serve as acting CFO.

The board also announced that it has terminated Nag from her roles as executive vice president of corporate affairs, chief legal officer and corporate secretary, effective immediately, in connection with the preliminary findings of the board's ongoing investigation. Jason Morris will serve as acting corporate secretary.