Norfolk Southern, a U.S.-based railroad company, terminated Nabanita Nag, an Indian-origin lawyer, from her role as Chief Legal Officer after an inquiry into her consensual relationship with the company’s CEO, Alan Shaw.

Shaw was also dismissed from his position. Nag had been with Norfolk Southern since 2020, starting as General Counsel. She was promoted to Senior Vice President and Chief Legal Officer in 2022 and later became Executive Vice President of Corporate Affairs and Chief Legal Officer in 2023.

Norfolk Southern Fires CEO and CLO Nabanita Nag, who previously served as associate general counsel at Goldman Sachs, characterized herself on LinkedIn as a “seasoned leader” and executive with a business-focused mindset, collaborating with internal clients at three Fortune 300 public companies.

Despite the consensual nature of her relationship with CEO Alan Shaw, Norfolk Southern Corporation stated that both violated company policies and the code of ethics. The company emphasized that Shaw’s departure was not related to the company’s performance or financial results, but he was dismissed for cause.

Reuters reports that Shaw’s dismissal follows a recent proxy battle with activist hedge fund Ancora Holdings, which led to the election of three new directors to Norfolk Southern’s 13-member board.

Norfolk Southern Fires CEO and CLO According to Reuters, executives and lawyers were negotiating the terms of a possible exit package for Alan Shaw, which may include severance payments, according to two sources.

Mark George, the Chief Financial Officer (CFO), was appointed as the new president and CEO of Norfolk Southern following an internal investigation into allegations that Shaw breached the company’s ethics policies. This appointment ended days of speculation about Shaw’s future after the company revealed it was looking into claims of an inappropriate relationship between Shaw and a direct report.

Shaw, who had been with the company for decades, had overseen Norfolk Southern during the 2023 derailment in East Palestine, Ohio, which is expected to cost the company over $1 billion in settlements. The company also announced that George would join the board.