US company Norfolk Southern fires Indian-origin lawyer over consensual relationship with CEO

Norfolk Southern, a US-based railroad transport company, fired an Indian-origin lawyer, Nabanita Nag over her consensual relationship with the CEO of the company.

She was dismissed from her position as Chief Legal Officer at the Atlanta-based company following an investigation into allegations of a consensual relationship with CEO Alan Shaw, who was also fired on Wednesday.

She joined Norfolk Southern in 2020 as General Counsel. She was appointed Senior Vice President and Chief Legal Officer in 2022 and Executive Vice President of Corporate Affairs and Chief Legal Officer in 2023.

She previously worked with Goldman Sachs as associate general counsel.

The Indian-origin lawyer described herself on LinkedIn as a “seasoned leader” and executive with a business-oriented approach, working as a partner and collaborator with internal clients at three Fortune 300 public companies.

Despite the consensual nature of the relationship, Norfolk Southern Corporation stated in a statement that the two violated company policies and the code of ethics by getting into a relationship.

The company said, “Shaw’s departure is unrelated to the company’s performance, financial reporting and results of operations,” adding that he was fired for cause, Norfolk Southern said in a statement.

According to news agency Reuters, the investigation into Shaw’s actions comes just months after he survived a contentious proxy battle with activist hedge fund Ancora Holdings, which resulted in three new directors being elected to the company’s 13-member board.

Reuters reported that executives and lawyers were discussing the terms of a potential exit package for Shaw, which includes severance, as per two sources.

Chief Financial Officer (CFO) Mark George was promoted to run the railroad followed by an internal probe into allegations that Shaw violated the company’s ethics policies.

The company tapped Mark George as president and chief executive, ending days of frenzied speculation about the future of Shaw since the company acknowledged on Sunday that it was probing allegations Shaw had an inappropriate relationship with a direct report.

Shaw, who had been with the company for decades, led it through the disastrous 2023 derailment in East Palestine, Ohio, an incident expected to cost the company over USD 1 billion in settlements.

The company announced that George would join the board.