The chairman of bus and rail operator FirstGroup is to leave the company despite seeing off an activist investor-led challenge to the board and its strategy.
Coast Capital Management, which holds about 10% of the FTSE 250 transport firm's shares, had been pushing for a clear-out of company directors, including Wolfhart Hauser, and an exit from its loss-making UK rail operations.
It had tabled a series of votes at an extraordinary general meeting though they failed to gather majority support despite Sky News reporting backing for the removal of Mr Hauser from fund managers Schroders and Columbia Threadneedle Investments.
Collectively - they held a combined voting power of almost 30%. Mr Hauser secured backing from 70% of those who voted.
But moments after the company declared victory, it confirmed in a further statement that Mr Hauser had decided "it was time to move on" and would not stand for re-election at the next annual meeting.
Coast told Sky News his departure was "long overdue".
It had demanded a series of changes on the grounds that shareholder value had been destroyed.
FirstGroup acknowledged the issue last month when it pledged to sell its Greyhound coach division in the US and pursue a sale, demerger or joint venture at its UK bus business.
It said in a statement after the votes: "The FirstGroup board is pleased that shareholders voted decisively against Coast Capital's attempt to take control of the company by defeating all of the resolutions that were put to today's meeting, and notes that, on average, other shareholders voted more than 4 to 1 against Coast Capital's resolutions.
"The board also notes that more than 20% of shareholders voted in favour of several resolutions against the board's recommendation.
"The board takes seriously its responsibility to understand shareholders' opinions and will continue to engage with our investors over the coming weeks to discuss any views they may have, as reflected in the votes on those resolutions, as part of its ongoing programme of engagement."
FirstGroup, which runs the South Western and TransPennine franchises in the UK, wants to strike a deal to run the new West Coast rail franchise.
It has admitted that it will lose more than £200m across the two exiting UK rail operations.
Coast Capital said
