ATLANTA – Norfolk Southern sought to reassure employees that the railroad is in good hands after this week’s firing of CEO Alan Shaw and Chief Legal Officer Nabanita Nag, who were engaged in a consensual relationship in violation of the company’s ethics policy.
“While we are deeply troubled to learn of this situation, I am proud of our board for addressing it swiftly,” new CEO Mark George wrote in a memo to employees. “Now, we need to get this behind us. We have a lot of work ahead of us, and our focus remains unchanged. We must continue to become even safer, drive further productivity, and continue to build the confidence and business of our customers.”
“Through all of this,” George wrote, “it has been a privilege to work alongside you as we responded to each. We have made incredible progress as a team. Our railroad is safer; we are more productive; we are growing our top line on the back of outstanding service; and our operations are getting stronger every day. We should all be proud of these accomplishments.”
George said that he was counting on employees to keep up the momentum, and noted that he was “impressed by the resilience and determination of the Thoroughbred team.”
“Collectively we have a noble mission of moving the American economy in a safe and sustainable way,” George wrote. “I am deeply moved by your dedication to that mission and the positive impact it has for our customers, communities and fellow team members.”
Claude Mongeau, the former Canadian National CEO who chairs Norfolk Southern’s board, in a separate memo addressed the events that led to Wednesday’s dismissal of Shaw and Nag after a brief investigation that began last week.
“As soon as the Norfolk Southern Board was made aware of the allegations that led to the investigation, we took immediate action to retain an independent investigator. Additionally, when sufficient evidence was uncovered from the investigation, the Board did not hesitate to hold Alan and Nabanita accountable,” Mongeau wrote. “We will always hold every employee of the company to the highest standards, no matter their role.”
The scandal, Mongeau wrote, doesn’t diminish operational improvements the railroad has made over the past few months.
“Mark has played an integral role in our process,” Mongeau said of George. “He is deeply familiar with Norfolk Southern’s operations and the industry; he knows the key players and he brings decades of financial and operational expertise. Importantly, Mark embodies our corporate values and our safety culture, making him the ideal fit to lead Norfolk Southern.”
George, Chief Operating Officer John Orr, Chief Marketing Officer Ed Elkins, and Chief Information and Digital Officer Anil Bhatt would “continue to improve NS’ operating performance and close the margin gaps with peers,” Mongeau wrote.
“Throughout my career in the railroad industry, I’ve learned that success never comes down to one person but to the collective efforts of a team working together to achieve a common goal,” Mongeau wrote. “As we move forward, Mark, the Board and your leadership team will rely on each of you to stay focused and continue to advance our strategy.”
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