The company involved in the East Palestine train derailment has dismissed its CEO, citing an inappropriate relationship with the company's chief legal officer, according to a statement released by the company. Norfolk Southern CEO Alan Shaw was dismissed for "engaging in a consensual relationship" with Nabanita Nag.
Shaw could now lose out on the large severance packages often granted to departing CEOs, the company announced on Wednesday. Nag, Norfolk Southern's chief legal officer, was also fired from her positions as executive vice president of corporate affairs, chief legal officer, and corporate secretary, with immediate effect after her illicit affair with the married Shaw came to light following an internal investigation.
Office Affair Costs Job
The company revealed on Sunday that Shaw, who is married with four children, was under investigation. His two-year tenure as CEO of one of the nation's top four freight railroads was overshadowed by multiple controversies, including the 2023 detonation of a derailed train carrying toxic chemicals in East Palestine, Ohio.
In February 2023, dozens of train cars derailed and burned for two days straight, releasing toxic hydrogen chloride and phosgene into the air and waterways. This raised concerns that residents of the small town of about 5,000 could face long-term health issues.
In the company's statement about their departures, neither Shaw nor Nag were thanked for their service.
Shaw had spent 30 years at Norfolk Southern, starting in 1994 as a cost systems analyst and working his way up to CEO.
Nag joined the company in 2020 as general counsel, having built a legal career at prominent firms like Shearman & Sterling, Goldman Sachs, and Prudential Financial, according to her LinkedIn profile.
Shaw, who earned $4.5 million annually as CEO, came under fire last year for deciding to detonate the derailed train cars.
He defended the decision, telling local media that the controlled explosion of five cars carrying vinyl chloride was necessary to reduce the risk from carcinogenic chemicals, pointing to the "terrifying" black smoke plume as proof that it prevented an even greater hazard.
"I understand why this has created a lot of national attention. What we're trying to do is work closely with the local leaders on the environmental remediation, getting information right, data-based, science-based information.
"All the misinformation out there, that's really causing a lot of issues, frankly for the people of this community."
Dangerous After Effects
Experts believe it could take years of research to fully understand the health consequences of the derailment, noting it's currently impossible to predict how many cases of cancer or chronic respiratory issues may emerge in the future.
Last year, more than 176,000 tons of contaminated soil and over 44 million gallons of polluted water were removed from the derailment site. That cleanup effort was mostly completed by October, and crews are now working on replacing the soil.
Norfolk Southern has committed $25 million to refurbish the town's park and an additional $4.3 million to upgrade its water treatment system, expenses that East Palestine likely could not cover on its own.
The company is also spending $20 million to build a regional training center for first responders, aimed at preparing them to handle hazardous materials like those involved in the derailment.
The railroad has set up a fund to compensate homeowners for any loss in property value if they sell and has pledged to create additional funds to cover potential water contamination or future health issues. These funds are still being discussed with state and federal officials, who have vowed to hold Norfolk Southern accountable for the disaster.
