Eastern Railroad Discussion > NS Proxy Battle in the Home Stretch

 The battle to win the hearts, minds and votes of Norfolk Southern shareholders has entered the home stretch.
Shareholders will vote on Thursday on competing slates of candidates for the NS board of directors.
Cleveland-based investor group Ancora Holdings is trying wrest away control of the board so it can fire NS CEO Alan Shaw and chief operating Officer John Orr.
They would be replaced, respectively, with James Barber and Jamie Boychuk.

Ancora launched the proxy battle in February and each side has waged a war of competing claims and counter claims.
Each side has lined up shippers, railroad labor unions and others to tout their slate of director candidates.
Shaw continued this week to press NS shareholders to support his vision for NS, which he has termed “A Better Way.”

“Our strategy for Norfolk Southern is about growing safely and responsibly to create a more productive, efficient railroad. We’ve gained real momentum by being focused, active, and decisive,” he wrote in a letter to shareholders this week.
Ancora and its supports have argued that NS needs new leadership starting with the board. Ancora has argued that it will grow business and improve the operating ratio under its operating model if it gains control of the Atlanta-based railroad. From the akronrrblog
 

In my mind, this is a lot of BS.  If this Ancora Group gets in charge, things will change and not for the better as their only goal is to make all the money they can, regardless of service, for those big shareholders.  Customers will suffer for sure as Ancora will squeeze every penny they can to pay those big wheels in charge.  You will see, but I honestly hope this does not happen.
John in White Marsh, Maryland

These kind of money games are not good for the US transportation system, and we need better regulation to keep it from happening. There needs to be a balance between the needs of employees, customers, and investors. Ancora might argue that their takeover would be a correction, but NS has been profitable for decades. They are pushing it too far in favor of investors. The East Palestine wreck is a symptom of that. 

The US has been in a De-regulate trend since the 1970s. Airlines, stock brokers, banks, trucks, power companies, phones, and many more.

Both parties, one more than the other. Not likely to change, there is too much money in play.

Railroads probably should be some form of public utility, with accountability to shippers, employees, and communities as well as owners. Like that might happen...

Posted from Android

I agree with you up to the point.  Ancora's main goal is to make more money for themselves, I don't think they care at all about the other big shareholders beyond having them vote in Ancora's slate.

ClubCar Wrote:
-------------------------------------------------------
> In my mind, this is a lot of BS.  If this Ancora
> Group gets in charge, things will change and not
> for the better as their only goal is to make all
> the money they can, regardless of service, for
> those big shareholders.  Customers will suffer
> for sure as Ancora will squeeze every penny they
> can to pay those big wheels in charge.  You will
> see, but I honestly hope this does not happen.
> John in White Marsh, Maryland

I suspect that many or most of the shareholders are institutional investors...

Victor Baird



Edited 1 time(s). Last edit at 05/08/24 06:45 by wabash2800.

wabash2800 Wrote:
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> I suspect that many or most of the shareholders
> are institutional investors...
>
> Victor Baird

Yes, 75%-80% depending on who is counting. Typical of an S&P 500 listed firm.

Some large endowments, pension plans, etc can and do direct their managers how to vote.

Posted from Android

Thankfully today is the last day I'll get a "contested election proxy" in my email.