KANSAS CITY, Mo. — Kansas City Southern’s board formed a nominating committee composed of independent directors that will identify and nominate potential new directors to fill vacancies, Dow Jones Newswires report.
In a press release Wednesday, the transportation holding company said the action will strengthen its governance position in accordance with proposed new governance guidelines developed by the New York Stock Exchange.
The guidelines generally require NYSE-listed companies to have a majority of independent directors on their boards.
Company officials weren’t immediately available for comment Wednesday evening to provide further information on the composition of the board.
The board of Kansas City Southern is divided into three classes. The members of each class serve staggered three-year terms which results in one class standing for election at each annual shareholder meeting.
Kansas City Southern, which doesn’t currently have vacancies on its board, said it adopted other unspecified measures related to the proposed corporate governance rules.
Last week, the company warned that third-quarter earnings would fall below Street estimates due to higher operating costs caused by congestion directly related to the implementation of a new computer operating system as well as temporary diversion of some traffic.
Kansas Southern’s New York Stock Exchange-listed shares closed at $12.90, up 15 cents, or 1.2%, on composite volume of 267,100 shares. Average daily volume is 291,870 shares.