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Glass Lewis backs six of Ancora's nominees for Norfolk Southern board
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Glass Lewis backs six of Ancora's nominees for Norfolk Southern board
Apr 29, 2024 5:37 AM

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.

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