01:52 PM EDT, 05/09/2024 (MT Newswires) -- Norfolk Southern ( NSC ) said Thursday its shareholders elected 10 of the company's director nominees, including reelecting Chief Executive Alan Shaw, along with three nominees proposed by activist investor Ancora, according to a preliminary vote count.

Ancora had nominated seven director candidates for election to the railway company's board and was looking to oust Shaw. Norfolk Southern's ( NSC ) board and Shaw have "continued to deliver disappointing financial results, poorly received guidance and sustained safety lapses a year after the East Palestine, Ohio disaster," the investor said in March. Norfolk Southern ( NSC ) had recommended that its shareholders reject Ancora's director nominees.

Last month, Norfolk Southern ( NSC ) reported preliminary first-quarter results below analysts' expectations and struck a $600 million agreement in principle to settle a class-action lawsuit over the derailment of one of its trains in East Palestine last year.

Ancora nominees William Clyburn Jr., Sameh Fahmy and Gilbert Lamphere will now be part of Norfolk Southern's ( NSC ) board. "Our shareholders recognize that positive change is underway at Norfolk Southern ( NSC )," Norfolk said. "Together, we are building a safer, more profitable railroad, closing the margin gap with our peers, and ultimately growing value for our shareholders."

Norfolk Southern ( NSC ) shares were down 2.7% in Thursday afternoon trade.

Separately, Ancora said the voting results indicate an "extremely positive development" for Norfolk Southern ( NSC ) shareholders.

"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," Ancora Holdings CEO Frederick DiSanto and Ancora Alternatives President James Chadwick said. "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 voting results indicate Norfolk Southern ( NSC ) shareholders haven't supported Board Chair Amy Miles, Chair of Governance and Nominating Committee Jennifer Scanlon, and Chair of Human Capital Management and Compensation Committee John Thompson, according to Ancora. The firm said the results suggests that a majority of Norfolk Southern's ( NSC ) board will now be comprised of directors nominated or unopposed by Ancora.

Norfolk Southern ( NSC ) said Thomas Bell, Mitchell Daniels, Steven Leer and Michael Lockhart didn't seek board re-election. The company said the new 13-person board, once finalized, will each serve a one-year term expiring in 2025.

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