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Norfolk to add brand-new board member in settlement with activist investor

Railroad operator Norfolk Southern accepted add an independent member to its board as it settled a long-drawn battle with activist investor Ancora Holdings over the business's. governance.

Following the agreement, Ancora will withdraw its election. of four prospects for election to Norfolk's board, the business. stated in a declaration.

Previously this year, the activist financier chose 7. directors to Norfolk's board and advised the company to change. then-CEO Alan Shaw, arguing that new blood was needed to enhance. financial and operational metrics.

Ancora won three seats at the business's yearly conference. in May however Shaw remained as a director and kept his CEO. position, triggering Ancora to state it will continue to promote. his replacement.

Norfolk fired Shaw in September following an internal. probe into accusations that he had breached the company's principles. policies. It promoted CFO Mark George to run the railway.

The company in October reported third-quarter revenue and. profits above estimates assisted stronger volumes and an improving. operating ratio.

On Thursday, Norfolk stated Ancora had actually participated in a. dead stop agreement and would now enact accordance with. suggestions made by the company's board to investors at. its 2025 annual meeting.

In our view, it's a brand-new day at Norfolk Southern. following Board drink, management improvements, and new. leadership's efforts to develop a disciplined and. operationally led network, Ancora CEO Frederick DiSanto said.

The addition of a new director will expand Norfolk's. board to 14.

(source: Reuters)