Feb 26 (Reuters) - Norfolk Southern said it had proposed two new candidates to its board on Monday after an investor group led by Ancora Holdings proposed replacing the top management, including its CEO.

The two new candidates for the board include former Amtrack and Delta Air Lines CEO Richard Anderson and former U.S. Senator Mary Kathryn "Heidi" Heitkamp.

The Ancora-led group had also

nominated eight members

- including several industry veterans and former Ohio governor and congressman John Kasich - earlier this month.

Norfolk shares fell nearly 5% in 2023 amid operating challenges and the fallout from a costly derailment in East Palestine, Ohio, which invited scrutiny from regulators. (Reporting by Abhinav Parmar; Editing by Sriraj Kalluvila and Tasim Zahid)