A shareholder vote on an attempted takeover of Atlanta-based Norfolk Southern could shape the railroad’s future.

Norfolk Southern shareholders will vote Thursday during the company’s virtual annual meeting on a proposal by activist investor group Ancora Holdings to replace most of the company’s board members.

Here are the issues and what’s at stake.

What led up to the attempted takeover?

Norfolk Southern has been under harsh scrutiny since the fiery February 2023 derailment in East Palestine, Ohio, of a train carrying hazardous materials.

The disaster left thousands of residents concerned about the impact on their small town and their future health, prompted federal investigations, lawsuits and national criticism.

What’s more, Norfolk Southern has racked up more than $1.6 billion in charges due to the derailment, including a $600 million class action settlement. Its financial performance has suffered.

A series of other Norfolk Southern accidents also led to heightened concerns about a safety crisis and prompted the National Transportation Safety Board to launch a special probe into the company’s safety culture.

Norfolk Southern CEO Alan Shaw last year pledged to “rebuild our safety culture from the ground up.” He has also led a strategy to improve the railroad’s operations and address service problems.

The NTSB’s final findings on the East Palestine wreck are scheduled for a June 25 meeting in Ohio.

...continued

©2024 The Atlanta Journal-Constitution. Visit at ajc.com. Distributed by Tribune Content Agency, LLC.