An activist investor group that seeks to reform Atlanta-based Norfolk Southern got three new board members elected to the railroad’s board — but failed to gain majority control of the board and effect a plan to replace the company’s CEO Alan Shaw, according to preliminary results of a shareholder vote Thursday.

Norfolk Southern, beleaguered by criticism for more than a year, has incurred more than $1.6 billion of charges since its February 2023 derailment of a train carrying hazardous materials in East Palestine, Ohio. Its financial performance has suffered from the additional expense as the company has spent much attention on responding to the disaster and its aftermath.

On Thursday, the company’s shareholders voted in 10 of Norfolk Southern’s 13 proposed board members, and voted out three of the company’s nominees, including its board chair Amy Miles.

Instead, shareholders voted in three of activist investor firm Ancora Holdings Group’s seven proposed board nominees, placing on the board William Clyburn Jr., a Democrat and former vice-chair of the U.S. Surface Transportation Board; Sameh Fahmy, a former Kansas City Southern railroad executive; and Gilbert Lamphere, chairman of MidRail Corp.

The results signal shareholders’ are showing some dissatisfaction with the company’s current management by voting in some of Ancora’s proposed board members.

But management also said the vote — for most of the company’s proposed board slate — means “shareholders recognize that positive change is underway at Norfolk Southern.”

“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 said in a statement after the vote. The company announced results of a preliminary vote count at the meeting, with final results to be tabulated and certified in coming days.

Ohio-based Ancora is an investment firm that owns an equity stake in Norfolk Southern, and offers investment advisory, wealth management, retirement plan and insurance services to clients.

Ancora wanted to replace seven people on the 13-member board to gain majority control and replace Shaw with former UPS executive Jim Barber as CEO. Ancora also wanted to install former CSX executive Jamie Boychuk as chief operating officer.

Ancora had argued that its plans to revamp the railroad would improve its service, safety and long-term value.

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