“The proxy battle centers on the debate over which management team is best suited to move the company forward,” both reports said, adding, “Therefore, dissidents are not encouraged to assert management’s case. It is important that our voices be heard fully.” Changes will be considered appropriately. ”
The recommendation also expressed support for naming Ancora CEO Jim Barber as a “credible” director and chief executive officer, softening criticism that his lack of rail experience was a shortcoming. Ta. The former UPS executive is “viewed as a highly qualified candidate with experience and skills that are transferable to the rail industry,” the report said.
ISS’s main advisory arm and Glass Lewis, the two largest proxy voting firms, had already said at Norfolk Southern’s May 9 meeting that shareholders should support the majority of Ancora’s nominees. Glass Lewis supported six of Ancora’s chosen managers, including Barber.
ISS had previously endorsed five candidates for Mr. Ancora and withheld its support for CEO Mr. Barber, who was proposed by an activist investor, but could also be a capable executive. He pointed out that it is highly sexual.
In a statement to CNBC, Ancora said Thursday’s news “represents an important message to union retirement plans and companies that prioritize both socially responsible investing and value enhancement.” He added that the annual precision schedule rail strategy is “very different from Norfolk Southern’s resilient rail construction.”model” It also works well for four other publicly traded Class I railroads.
The proxy advisor’s support so far is a clear mandate for change for the troubled railroad, which has underperformed its peers in the stock market and is still grappling with the aftermath of the East Palestine, Ohio, derailment. is supported.
ISS’s two more tailored recommendations carry particular weight given the derailment, which released more than 100,000 gallons of toxic chemicals into the environment, and the heavy influence of labor unions in the rail industry. Masu.
Support for the union is divided between management and activist investors. Two different Teamster unions support the activist, and approximately 42% of the NSC’s membership supports the activist. Another union coalition is supporting management.
Union support is unusual in railroad activist movements, which typically focus on cost and layoffs to improve utilization rates, a key financial indicator for railroads.
However, Ancora was able to secure the support of these unions and the support of multiple shareholders. Neuberger Berman earlier said it supported Mr. Ancora’s calls for change at Norfolk Southern Bank, while Canadian asset manager Edgepoint also reaffirmed Thursday that it would vote its stock to the activist. . (EdgePoint was initially affiliated with his Ancora campaign in south Norfolk, but ended that partnership several months ago)
Top institutional shareholders include Vanguard, BlackRock, State Street, Dodge & Cox, as well as the California State Pension Fund, CalPERS, CalSTRS, and Colorado’s public pension fund.
