FILE – A Norfolk Southern freight train passes a train on a siding as it approaches a railroad crossing in Homestead, Pa., April 27, 2022. (AP Photo/Gene J. Puskar, File)

Norfolk Southern announced an agreement Thursday with Ancora Holdings to prevent the investor from launching a repeat of this year’s campaign to take control of the railroad. As part of the agreement, Norfolk Southern will add another independent director to its board of directors and work to further improve its operations. Ancora, meanwhile, agreed to forgo the nomination of four new directors to the board to be elected at next year’s annual meeting. The Ohio-based investor won three board seats earlier this year, but did not win enough seats to make the sweeping changes, including replacing management, that it wanted. But leadership changes still took place in September, when former CEO Alan Shaw was fired for having an inappropriate relationship with the railroad’s legal director. Chief Financial Officer Mark George was promoted to run the railroad alongside the new chief operating officer hired in the spring amid the fight with Ancora. George said he has no plans to abandon the strategy outlined by Shaw, which aims to keep more resources available during economic downturns so the railroad can provide better service and be ready to respond to increased shipments when the economy eventually recovers. But George also said he would not tolerate mediocrity and would keep up the pressure to make the railway more profitable and efficient.
“We are making significant progress on key operational metrics, as evidenced by our strong third quarter 2024 results during which we improved productivity, increased volumes and recorded notable margin improvement. » George said. Frederick DiSanto, Ancora’s president and CEO, and James Chadwick, who runs Ancora Alternatives, said they liked what they saw.
“In our view, it is a new day at Norfolk Southern following the refresh of the board of directors, management improvements and the efforts of new leadership to establish a disciplined and operationally led network. » DiSanto and Chadwick said in a statement. Atlanta-based Norfolk Southern Corp. is one of the nation’s largest railroads, with tracks crisscrossing the eastern United States.