A majority of Norfolk Southern’s Board of Directors is now be comprised of directors nominated or unopposed by Ohio-based Ancora Holdings Group, LLC.
“It’s an extremely positive development for shareholders that this campaign has driven significant changes at Norfolk Southern, including the ouster of the Board Chair, Governance Committee Chair and Compensation Committee Chair,” Frederick D. DiSanto, chairman and chief executive officer of Ancora, and James Chadwick, President of Ancora Alternatives LLC, said in a statement. “This represents a loud and clear message to replace the Company’s unqualified CEO and reconsider its ineffective strategy, which has driven industry-worst customer delivery times, severe derailments and persistent share price underperformance.
“Notably, CEO Alan Shaw received what we deem a resounding vote of no confidence based on preliminary voting results that indicate he barely received support from holders of 50% of the Company’s outstanding shares,” they added. “The first step toward turning around Norfolk Southern has been taken by electing Messrs. Clyburn, Fahmy and Lamphere. Given that we have no standstill agreement and a clear mandate from a critical mass of shareholders, we will continue to hold Mr. Shaw to account and push for the appointment of a qualified operator who can actually drive shareholder value. The campaign for change at this great American railroad will continue.”
