Norfolk Southern wants its shareholders to back its current management team and strategy and reject a bid from a group of investors seeking to take over the railroad.
The Atlanta-based railroad urged shareholders to reject Ancora Holdings’ eight board nominees when it filed its proxy Monday morning with the Securities and Exchange Commission. Norfolk Southern also nominated two new board members of its own — a former Amtrak CEO and a former U.S. Senator — that the railroad argues will provide valuable fresh perspective without derailing its current plan.
“We are confident that the continued execution of our balanced strategy – under the vision and leadership of Alan Shaw – is critical as we prioritize operational rigor, safety, and service,” said board chair Amy Miles.
Since 2019, Norfolk Southern has run a version of what has become the industry’s standard operating model that relies on running fewer, longer trains on a tighter schedule, so the railroad won’t need as many crews, locomotives or maintenance workers.
But under Shaw, the railroad backed away from that model’s short-term cost cutting to keep additional staff on hand during downturns to respond better when the economy rebounds. Norfolk Southern has also invested in improving safety over the past year since its fiery derailment in East Palestine, Ohio.
Ancora argues that Norfolk Southern hasn’t done nearly enough to improve its efficiency because its profits continue to disappoint, and its operating ratio — a key measure of profitability that rail investors track — lags behind the other major freight railroads. So Ancora wants to hire former UPS executive Jim Barber and former CSX chief operating officer Jamie Boychuk to run the the railroad.
“Our slate and proposed management team have publicly committed to pursuing ‘stronger growth’ and implementing a ‘reliable network strategy that will leverage Norfolk Southern’s existing assets…
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