(The Associated Press circulated the following story on May 8. Hugh L. Sawyer Jr. is Legislative Representative of BLE Division 316 in Atlanta.)
NEW ORLEANS — Stockholders of Norfolk Southern Corp. defeated a proposal to end staggered terms for the railroad company’s board members, the company said Thursday at its annual meeting.
About 51.4 percent of the company’s shares were voted against the proposal to make the nine board members stand election every year. The proposal would have ended the current system under which three members stand election each year for three-year terms.
The proposal was opposed by Norfolk Southern’s board.
The change was put forward by Hugh L. Sawyer, of Atlanta, who owns 639 shares of Norfolk Southern stock.
In his proxy proposal, Sawyer contended that making all board members stand election each year would make the board more responsible to stockholders and “give the company the flexibility it needs as it moves into the future.”
In opposition, the board said the current system “allows directors to have a long-term focus in the management of the business” and also would put Norfolk Southern in a stronger position “to negotiate the best results for stockholders in a takeover situation.”
In afternoon trading on the New York Stock Exchange (news – web sites), Norfolk Southern shares were down 30 cents at $20.98.