ATLANTA — With a bruising proxy battle now behind it, Norfolk Southern now must deliver on the promises the railroad has made, CEO Alan Shaw said in a video message to employees today.
“It was a good day for Norfolk Southern,” Shaw said of Thursday’s annual meeting of shareholders, where investors backed the railroad’s management while demanding change through the election of three of an activist investor’s seven board candidates.
Shaw says the vote indicated that shareholders have confidence in the railroad’s strategy and its management team. “But they were also really clear: They want us to deliver results,” he says.
Shaw pledged to work with the five new NS board members, including the Ancora Holdings candidates who gained board seats. They include former Surface Transportation Board member William Clyburn Jr., former Canadian National and Kansas City Southern executive Sameh Fahmy, and railroad financier Gil Lamphere.
Ancora fell far short of its goals of gaining control of the 13-member board and ousting Shaw and newly appointed Chief Operating Officer John Orr.
“We have to deliver. That’s the message received from our shareholders. We have to deliver on that groundbreaking strategy of a balance between service, productivity, and growth with safety at its core,” Shaw says.
Shaw thanked employees for their support during the proxy battle, and noted that customers, regulators, and elected officials all were aligned with the NS “better way” strategy.
“We have this unique alignment of support from all different constituents,” Shaw says, pledging to work in the long-term best interests of shareholders, customers, employees, and the communities in which the railroad operates.
I wonder how the MOW and Locomotive and Trainmen Union members are feeling now with all the egg on their faces for backing the wrong horse! WAHHHHHH!
PSR won. The only difference is which bunch of pocket stuffing executives and hedgies rank in the “fruits” of asset stripping. Customers, the public and environment lose; it was baked in the cake by Wall Street for all the class 1s.
JF…there are optimists, and pessimists…I choose optimist. The rebound will never happen if every employee and stock holder has the pessimist attitude.
“We’ll create artifical shortages of locomotives, railcars, manpower and yard space”, defer maintenance, cut local assignments, run trains at oversiding length oand raise rates. Now, let’s deliver results.”
Not to start a debate, but I am pretty sure that is the exact opposite of Shaw’s goal. He has always talked about being more customer and employee driven.
PSR was always sold on giving better service, but everywhere it turned out to be a ruthless cost-cutting scheme that robbed the railroads of their resilience.
I’d love to be optimistic, but Ancona pretty much got what they wanted. Any railroad wanting to give good service and grow the business know what awaits them. Pretty sad.