NORFOLK, Va. -- Freight railroad operator Norfolk Southern Corp. said Thursday (Jan. 28) it will seek to require annual election of all board members to improve accountability, BusinessWeek reported.
Currently, directors serve 3-year terms.
The company said its board would ask shareholders to approve the change at the 2010 annual meeting, with the new policy taking effect in 2011.
Directors who were elected to 3-year terms before the change, and those elected at this year's annual meeting, would be allowed to serve out their terms before standing for re-election.
The company owns Norfolk Southern Railway, which operates over about 21,000 miles of track in 22 states and the District of Columbia.
Norfolk Southern shares slid $2.29, or $4.5 percent, to $48.14 in afternoon trading as the broader market fell.
(The preceding article appeared on the Web site www.businessweek.com on January 28, 2010.)
