Norfolk Southern negotiating CEO's exit, looks for interim chief, sources say

Norfolk Southern CEO Alan Shaw is under fire for the company's handling of the Ohio train derailment.

Norfolk Southern is in talks to negotiate the departure of Chief Executive Alan Shaw and is looking for an interim CEO, according to people familiar with the matter, as the company faces mounting pressure over its handling of the toxic train derailment in Ohio earlier this month.

The board of directors is expected to meet this week to discuss Shaw's future with the company, the people said. They cautioned that no final decision has been made and that it is possible Shaw could stay on.

Norfolk Southern declined to comment.

Shaw has been under increasing pressure from politicians, regulators, and the public since the Feb. 3 derailment in East Palestine, Ohio, which released toxic chemicals into the air and water.

The company has been criticized for its response to the disaster, including its decision to burn off the chemicals, which sent a plume of black smoke into the sky. Norfolk Southern has also been accused of downplaying the risks of the derailment and of failing to communicate effectively with the community.

The pressure on Shaw has intensified in recent days as more information has emerged about the derailment and its aftermath. On Friday, the Environmental Protection Agency ordered Norfolk Southern to clean up the contaminated soil and water around the derailment site.

The EPA also said that the company must pay for the costs of the cleanup, which could run into the hundreds of millions of dollars.

Norfolk Southern has already spent more than $6 million on the cleanup effort, and the company has set aside $11 million to cover potential claims from residents and businesses affected by the derailment.

But the company's financial exposure could be much greater. The EPA could fine Norfolk Southern up to $70,000 per day for each day that the cleanup is not completed.

In addition, the company could face lawsuits from residents and businesses who have been affected by the derailment. Some lawyers have already filed class-action lawsuits against Norfolk Southern, alleging that the company was negligent in its handling of the derailment.

The derailment has also raised questions about the safety of the U.S. rail system.

The National Transportation Safety Board is investigating the cause of the derailment, and the agency has already made several recommendations to improve rail safety.

The NTSB has recommended that railroads install more advanced braking systems on their trains, and that they do a better job of inspecting their tracks.

The NTSB has also recommended that the government require railroads to provide more information to communities about the risks of hazardous materials that are being transported by rail.