Norfolk Southern announced a new cooperation agreement with activist shareholder Ancora Holdings, paving the way for collaboration in identifying an independent director for the board. This development follows Ancora's withdrawal of its previous nomination for four directors and a commitment to vote in line with the railroad operator's board recommendations at the upcoming 2025 annual shareholder meeting. On the stock market, Norfolk's shares fell by 1.9% during midday trading.
Chief Executive Mark George highlighted the company's strong operational metrics, as seen in the recent third quarter results, where Norfolk Southern demonstrated efficiency by enhancing productivity, increasing volumes, and achieving significant margin improvements. This agreement marks a significant shift for Norfolk Southern, especially following the earlier termination of Chief Executive Alan Shaw for an inappropriate workplace relationship—an outcome that Ancora had been advocating for.
Earlier this year, Ancora successfully secured three board seats by nominating seven directors, indicating an active engagement in the company's governance. In a joint statement, Ancora's Chief Executive Frederick DiSanto and Alternatives President James Chadwick noted, "In our view, it's a new day at Norfolk Southern following Board refreshment, management enhancements, and new leadership's efforts to establish a disciplined and operationally led network." Amid these changes, Norfolk Southern, which faced scrutiny for its role in the Eastern Ohio train derailment in 2023, reported adjusted earnings per share of $3.25 for the third quarter, reflecting a 23% increase from the previous year.
The company's stock is currently priced at $263.94, showing a change of -5.32 and a percent change of -1.98..