EAST PALESTINE — A group of investors led by Ohio-based Ancora Holdings Group which holds a $1 billion stake in Norfolk Southern (NS) and has been heavily critical of the railroad’s response following and business practices leading up to last year’s train derailment in East Palestine, called a derailment in Pennsylvania over the weekend “failed executive leadership.”

On Saturday, a NS train derailed in Lehigh Valley, spilling diesel and plastic pellets into the nearby river. An early investigation by the National Transportation Safety Board reported that an eastbound Norfolk Southern train collided with a parked train on the same track. The derailed train was later struck by a westbound NS train. Local authorities said no injuries were reported, no evacuations were necessary and no hazardous material was a threat to the community.

“It is all too common for people to see in the news that a Norfolk Southern train is at the center of a derailment or tragedy,” the investment said in a statement on Sunday. “It is only by the grace of God that preliminary reports indicate no fatalities are associated with this accident. Images of diesel-filled locomotives lying on their sides underscore the urgent need to replace the Company’s failed executive leadership and provide this railroad the fresh start it so desperately needs.”

Ancora has staged a proxy fight (when shareholders join forces and attempt to gather enough shareholder proxy votes to win a corporate vote), calling for the replacement of both the NS Board of Directors and CEO Alan Shaw.

On Monday, Norfolk Southern released a statement accusing Ancora of exploiting the latest derailment.

“It is unfortunate that a serious situation is being used to mislead stakeholders and to advance a proxy fight narrative,” the NS statement stated. “Norfolk Southern quickly responded to a derailment in Lower Saucon Township, Pa. The derailment resulted in no harm to the community and no hazardous material concerns from the railcars. We take this incident seriously and work hard to avoid all accidents. The National Transportation Safety Board is investigating this incident, and we will work closely with them to understand how it happened and prevent others like it.”

Norfolk Southern went on to defend its safety record.

“Norfolk Southern is leading the industry when it comes to safety. As a result of our robust safety initiatives, Norfolk Southern achieved a 42% reduction in our mainline accident rate year-over-year in 2023,” Norfolk Southern said via the statement. “Today, the company’s mainline accident rate is the lowest it has been in years and is among the best of the North American Class I rails. We are actively building on these achievements and helping the industry become even safer.”

Norfolk Southern also clarified reports that Shaw received a significant pay raise following last year’s derailment in East Palestine.

“Contrary to Ancora’s claims, the board did not raise CEO pay 37%,” Norfolk Southern said. “The board’s purposeful efforts to maintain alignment between management and shareholders’ interests though our compensation program are clear.”

The railroad explained that, compared to his target compensation, in 2023 “Shaw saw a 33% reduction in his realizable compensation at year end.” NS said that the difference in Shaw’s compensation for 2023 compared to 2022 was a reflection of his first year as CEO (Shaw became the CEO in May of 2022). The railroad maintained that other increases to Shaw’s compensation are based on both performance-based incentives and if certain metrics and targets are met in the future.