Investor group Ancora says safety is its 'top priority' at Norfolk Southern

Ancora Holdings Group LLC, the Ohio-based activist investor group aiming to overhaul Norfolk Southern Corp.’s board and executive leadership, yesterday "reinforced" its commitment to safety at the railroad.

Ancora issued a press release in response to Federal Railroad Administration Administrator Amit Bose's Feb. 21 letter to NS President and CEO Alan Shaw in which the regulator advised the company to stay focused on running a safe railroad, even as activist investors seek to replace top leadership.

"Any backsliding, as a result of a change in leadership or otherwise, on the safety-oriented path you have laid out and communicated to us will likely attract renewed oversight attention from my office as we pursue our safety mission," Bose's letter warned.

Earlier this week, Ancora, which holds a large equity stake in NS, announced the nomination of eight independent candidates for election to the NS board. The group also announced two proposed new leaders at NS: former United Parcel Service Inc. executive Jim Barber Jr. as CEO and former CSX executive Jamie Boychuk as chief operating officer.

In its latest press release, the investor group said it agrees with Bose’s statement that NS’s path to "immediate and long-term success is a relentless focus on safety."

Ancora’s statement continued: "We also share the agency’s concerns regarding ‘backsliding’ at the company. Despite making reactionary safety commitments following the preventable derailment in East Palestine, Ohio, in 2023, Norfolk Southern’s board and management team have overseen multiple derailments and the tragic death of an engineer in 2024. This is one of the primary reasons why our proposed management team and slate of director candidates, which includes former policymakers with relevant expertise, continue to follow President Joe Biden’s calls to hold Norfolk Southern accountable."

Ancora also called out NS Chair Amy Miles and the current NS board for allowing Shaw to "allocate millions of dollars" to wide-ranging lobbying and public relations.

Ancora claimed that its efforts would include the following:
• its scheduled network strategy would position NS to enhance safety and reduce risks by "shrinking the number of trains on the track and reducing dangerous workloads that can lead to exhaustion-driven mistakes;"
• its slate of candidates’ "top priority" is safety because NS cannot deliver sustained shareholder value without establishing a safety-first culture; and
• its slate of candidates will release a 100-day transition plan and detailed strategy overview after it is able to begin soliciting support for proposals at the 2024 annual meeting.

The group noted that as an Ohio-based entity, its "employees and partners … have loved ones and family who have been directly impacted by the tragedy in East Palestine, Ohio – meaning this campaign is about much more than financial returns to Ancora."

The Ancora press release can be read here.