ATLANTA - Norfolk Southern Corporation (NYSE: NYSE:NSC), a major player in the U.S. freight transportation sector, has publicly addressed what it calls "mischaracterizations of the facts," concerning its safety record and management compensation.
The company's statement on Monday comes in the wake of a recent train derailment in Lower Saucon Township, PA, on March 2, which Norfolk Southern says resulted in no community harm or hazardous material concerns.
The company emphasizes its commitment to safety, asserting a 42% year-over-year reduction in its mainline accident rate in 2023. Norfolk Southern points to its industry-leading safety record and the implementation of a comprehensive six-point safety plan, which includes digital train inspection portals, enhanced employee training, and participation in the Federal Railroad Administration's Confidential Close Call reporting system. The company has also engaged Atkins Nuclear Secured to conduct an independent safety assessment, with subsequent changes being made based on their recommendations.
Regarding executive compensation, Norfolk Southern contends that the facts have been distorted. The company clarifies that CEO Alan Shaw's compensation for 2023 saw a 33% reduction compared to his target compensation, with the board eliminating annual incentive payouts for 2023. The board's actions, according to Norfolk Southern, reflect a commitment to aligning management with shareholders' interests, with 92% of Shaw's target compensation being at-risk or performance-based.
Norfolk Southern also mentions its dealings with Ancora, stating that it has attempted to engage constructively to avoid a proxy contest. However, the company believes Ancora's suggested changes to the board, management team, and strategy could harm shareholder value. Norfolk Southern advises shareholders to disregard any blue proxy cards from Ancora and instead vote for the company's director nominees using the WHITE card provided.
Founded in 1827, Norfolk Southern operates a network that is integral to the U.S. economy, promoting sustainability and facilitating the movement of goods across the nation. The company is preparing to send out definitive proxy materials for its 2024 Annual Meeting of Shareholders, which will include further details for investors.
This article is based on a press release statement from Norfolk Southern Corporation.
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