Atlanta-based Norfolk Southern has named a new chairman of its board after its prior leader was voted off the board amid a fight for control between the company and an activist investor group.
Claude Mongeau, former CEO of Canadian National Railway Co., will become Norfolk Southern’s board chair effective immediately. He has served on Norfolk Southern’s board since 2019.
Credit: Source: Norfolk Southern
Credit: Source: Norfolk Southern
The appointment comes after the company’s shareholders earlier this month voted in 10 of Norfolk Southern’s 13 proposed board members, while voting out three of the company’s nominees — including board chair Amy Miles.
Shareholders instead elected three candidates nominated by Ohio-based activist investor firm Ancora Holdings Group.
“During this critical time for our storied franchise, I look forward to collaborating with the board and know we all are committed to holding management accountable to deliver on our promises to shareholders,” Mongeau said in a written statement. “The board has appreciated the engagement with shareholders over the last few months and shares their urgency around enhancing service, improving network operations, and broad-based productivity gains to close the gap with our peers.”
Norfolk Southern faced the proxy fight after incurring more than $1.6 billion of charges since its February 2023 derailment of a train carrying hazardous materials in East Palestine, Ohio.
Former Delta Air Lines CEO Richard Anderson, who is joining Norfolk Southern’s board after being nominated by the railroad and elected by shareholders, will become chair of the compensation committee.
Credit: Source: Norfolk Southern
Credit: Source: Norfolk Southern
Anderson said in a written statement that the board is “taking the results of our recent Annual Meeting seriously, particularly as it relates to executive compensation.”
And Francesco DeBiase, former global chief supply chain officer at McDonald’s Corp., will become chair of the governance and nominating committee on Norfolk Southern’s board. DeBiase has been on the board since last year.
Credit: Source: Norfolk Southern
Credit: Source: Norfolk Southern
