Norfolk Southern Railway said late Sunday it had launched an investigation into allegations of misconduct by Chief Executive Alan Shaw.
The company said its audit committee was working with a law firm “to conduct an independent investigation into the allegations.”
CNBC The station first reported that Shaw had been having an inappropriate relationship at work, citing people familiar with the matter.
Shaw did not immediately respond to a request for comment on the investigation.
In May, activist investor Mr Ancora won three seats on the railroad's board but was unable to oust the chief executive.
Ancora had proposed to investors that Alan Shaw be removed from the board and that former UPS chief operating officer Jim Barber be selected as CEO to eventually replace Shaw, and that Jamie Boychuk be named chief operating officer.
Shaw joined the company in May 2022, succeeding Jim Squires.
The hedge fund argued that new talent is needed to improve financial and operating metrics, and said it would continue to hold the company accountable for any future train wrecks or underperformance.
The Atlanta-based company reported second-quarter operating revenue of $3 billion, up 2 percent from the same period a year ago and slightly below analysts' expectations of $3.04 billion.
