The Norfolk Southern board is investigating CEO Alan Shaw over allegations of an inappropriate workplace relationship.

• Since 2022, Shaw has served as CEO of Norfolk Southern and has dealt with a toxic rail derailment and a contentious proxy fight.
• The company is collaborating with external legal consultants on the investigation, which is still in its initial phase and may not yield any wrongdoing.

Allegations that CEO Alan Shaw engaged in an inappropriate workplace relationship are being examined by the board, according to three sources.

No misconduct may be uncovered during the early stages of the probe, as the company is working with outside legal advisors, two sources said.

Multiple directors, including the chair and former Canadian National Railway CEO Claude Mongeau, did not respond to requests for comment.

Multiple spokespeople for the company did not immediately respond to requests for comment.

Norfolk Southern's board has undergone dramatic change over the last few months.

An investor advocating for change earlier this year attempted to remove Shaw as CEO of the railroad due to his handling of the East Palestine derailment, Norfolk Southern's poor stock performance, and what the investor deemed a faulty operating strategy.

Despite the election of three of its candidates to the board, Ancora failed to remove Shaw from his position, with approximately 36% of shareholders voting against his re-election. Ancora's spokesperson declined to provide comment on the matter.

If Shaw were to resign as CEO, the most likely internal candidates to replace him temporarily would be COO John Orr or CFO Mark George.

Orr, a longtime and respected railroad operator, joined the company amidst a proxy fight and has spent a considerable amount of time working in the field to improve the company's operations. Prior to joining the company, he was an executive at , but faced allegations of misconduct that Ancora brought up during its campaign. At the time, Norfolk Southern defended Orr's track record and accused Ancora of trying to divert attention from the qualifications of its own executive candidates.

For about five years, George has been the CFO of Norfolk Southern, having previously worked at HVAC manufacturer.

The company could also consider tapping Sameh Fahmy, who was previously Orr's boss and was recently in charge of the former Kansas City Southern's precision-scheduled railroading program.

WATCH: Norfolk Southern CEO Alan Shaw on earnings, East Palestine