Norfolk Southern has addressed the recent freight train derailment in eastern Pennsylvania, emphasizing that the incident did not pose a threat to the surrounding community. This statement comes in response to criticism from activist investor Ancora Holdings.
Swift Response to Derailment
The railroad operator assured that they promptly handled the derailment, which resulted in train cars resting along a riverbank in Lower Saucon Township. Fortunately, no injuries were reported, and there were no hazardous material issues from the railcars.
Norfolk Southern expressed disappointment that a significant event is being manipulated to misinform stakeholders and fuel a proxy fight narrative.
Pushback Against Investor Demands
In light of the derailment, Ancora Holdings called for the removal of Chief Executive Alan Shaw over the weekend, adding to their existing push for Shaw’s dismissal via a proxy fight. The investor group has nominated eight independent candidates to take over the current board of directors.
Dialogue and Compensation Clarifications
Despite the ongoing tensions, Norfolk Southern stated that they have engaged with Ancora in a constructive manner and are willing to explore peaceful resolutions.
The company also refuted claims made by Ancora regarding management compensation, clarifying that Shaw’s actual compensation was reduced by a third in 2023. Norfolk Southern pointed out that the apparent increase in Shaw’s compensation from 2022 to 2023 was due to him assuming the CEO position in May 2022.
Norfolk Southern remains committed to transparency and effective communication during this challenging period.
