Norfolk Southern's CEO has been dismissed due to a "consensual relationship" with the railroad's chief legal officer.

Norfolk Southern announced the termination of CEO Alan Shaw for cause, citing his consensual relationship with the company's chief legal officer, who was also dismissed. This decision, revealed Wednesday evening, means Shaw likely won't receive the typical severance package that accompanies such firings.

The company first indicated that Shaw was under investigation on Sunday. Having served as CEO for just over two years, Shaw's tenure was marked by significant challenges, including contentious labor negotiations, a major derailment in East Palestine, Ohio, which released toxic materials, and a proxy fight with activist shareholders seeking his removal.

While Shaw overcame the proxy battle, he was unable to withstand the scrutiny of the investigation into his personal conduct. Nabanita Nag, the chief legal officer, was also terminated, effective immediately, as part of the ongoing investigation's preliminary findings. Norfolk Southern has appointed CFO Mark George as the new CEO, with the board expressing confidence in his leadership.

Notably, the company's statement made no acknowledgment of Shaw's 30 years with the company, and he could not be reached for comment. Shaw began his career at Norfolk Southern in 1994 and gradually ascended through various roles.

While some unions opposed Shaw during the proxy fight, others supported him, acknowledging his efforts to enhance safety following the February 2023 derailment. The Federal Railroad Administration's administrator praised Shaw's safety improvements, noting that Norfolk Southern was the only Class I railroad to reduce mainline derailments last year.

Despite shareholder support that resulted in Shaw's re-election to the board with 64% of the votes, Norfolk Southern faced criticism over its handling of the derailment's aftermath. Jennifer Homendy, chair of the National Transportation Safety Board, condemned the company's actions, stating they unnecessarily endangered first responders and local residents.

The NTSB found the derailment was caused by an axle failure, and while Norfolk Southern’s pre-accident actions received little criticism, its post-accident handling faced severe backlash. Concerns were raised about the lack of information provided to first responders and the decision to conduct a controlled burn of vinyl chloride from the tank cars, which the NTSB deemed unnecessary given the circumstances.

This story has been updated with additional context and reporting.