Norfolk

Gephardt Government Affairs is representing Cleveland’s Ancora Advisors, the activist investment fund that launched a proxy fight at Norfolk Southern over its lackluster safety record.

Ancora, which has close ties to organized labor, pressed for the ouster of Norfolk CEO Alan Shaw, who was at the helm during the 2023 East Palestine (Ohio) derailment of a 38-car freight train carrying hazardous materials.

Norfolk shareholders on May 7 re-elected Shaw to the 13-member board, along with three nominees put forward by Ancora.

They are William Clyburn, ex-vice chair of the Surface Transportation Board; Sameh Fahmy, ex-EVP at Kansas City Southern Railroad; and Gilbert Lamphere, former chair at Illinois Central Railroad.

Dick Gephardt, the former House Majority Leader with strong ties to labor unions, heads his firm’s push for Ancora. He is focusing on rail safety and operational matters.

Norfolk fired Shaw on Sept. 11 for maintaining a consensual sexual relationship with its chief legal officer, Nabanita Nag, who was also let go.

Ancora played a key role in that firing, according to the Wall Street Journal. After getting tipped off about the affair, Ancora requested shareholder records from Norfolk as a possible prelude to launching another proxy fight.