April 29 (Reuters) - Proxy adviser Glass Lewis
recommended Norfolk Southern ( NSC ) shareholders vote for six
of Ancora Holdings' nominees for board seats at the railroad
company, including proposed CEO Jim Barber, in a big win for the
activist investor.
In a report dated April 28, Glass Lewis backed six out of
Ancora's seven nominees and said Ancora had presented a
compelling case for a management overhaul at Norfolk, adding the
company has been "consistently worse than its peers for an
extended period".
Glass Lewis' backing comes days ahead of Norfolk's May 9
annual general meeting, where shareholders will vote on
proposals including board composition and management pay.
Ancora, which has said it owns a large equity stake in
Norfolk, on Monday noted Glass Lewis' recommendation and
analysis. Norfolk did not immediately respond to a request for
comment.
The investor is seeking to replace Norfolk CEO Alan Shaw
with Barber, a former United Parcel Service executive.
Glass Lewis said Barber had "compelling credentials" and
recommended shareholders withhold support from Shaw.
Norfolk has rejected all of Ancora's nominees saying they
would not bring fresh skills or experience, but proposed plans
in February to add two new directors to its board to fend off
mounting pressure from Ancora.
A group of investors led by Ancora started pushing for major
changes at Norfolk earlier this year.
U.S. steelmaker Cleveland-Cliffs ( CLF ), a Norfolk Southern ( NSC )
customer, is also backing Ancora, Bloomberg News reported on
Sunday.