WASHINGTON — Ancora Holdings, which is leading an activist investor group that’s fighting a proxy battle to oust Norfolk Southern’s management, has responded to Surface Transportation Board Chairman Martin J. Oberman’s request for a meeting about its plans for the railroad.
“We suggest a discussion with yourself and the continuing Board Members once we have had a chance to make public our 100-day and initial operating plan in accordance with U.S. Securities and Exchange Commission disclosure requirements for investor communications. We expect those filings to be made by mid-April allowing us ample time to coordinate calendars ahead of the Norfolk Southern Annual Meeting,” Ancora Holdings Chairman and CEO Frederick DiSanto and Ancora Alternatives President James Chadwick wrote in a March 14 letter to Oberman.
Oberman sought a meeting with the Ancora executives more than a month ago, and in a letter to them this month said he was disappointed in their lack of a response.
The Ancora executives said they want to address criticism Oberman has leveled at what he and others have called Ancora’s short-term focus.
“Before we schedule this important meeting, we wanted to take a moment to address your recent comments because we believe our views and plans have not been accurately conveyed. We, along with our proposed director candidates and suggested management, have a deep understanding of how freight moves, and we are not advocating for the ‘same old corporate strategy,’” DiSanto and Chadwick wrote.
“We are advocating for a strategy that has no emphasis on headcount reductions or short-sighted tactics and has already had a profound impact on improving operating models and lowering accident rates in the railroad industry. This is in comparison to Alan Shaw and Norfolk Southern’s lax operating culture and associated lack of discipline that have translated into operational and safety deficiencies,” they added.
Ancora says it has a vision for the long-term success of NS.
The activist investors want NS shareholders to elect their slate of eight candidates, who then would have a majority of the board seats. They would replace Shaw with former UPS executive Jim Barber Jr. and appoint former CSX Executive Vice President of Operations Jamie Boychuk as Norfolk Southern’s chief operating officer.
Ancora, hit the road!
I want to see a 10 year plan, not a 100 day plan…then, and onl then, I would believe that you are looking at long term growth for NS!!!!
Ancora is a minority investor in NS. One has to wonder who their “friends” are that they are able to so motivate the STB to go along with them….
Why do I smell a lot of politician’s investments here….
Lax operating culture and lack of discipline? Oh boy. The employees better hope that the intended purge doesn’t happen. If Ancora prevails, all whips – no carrots. UGH!
The issue really isn’t a lack of discipline. The real issue is the influx of new employees with limited time on the job. The old heads that could mentor the new employees left or were pushed out after the PSR purge and the COVID shot requirements.
I’ve talked with a number of past employees with 15 to 20 years seniority. They left when the PSR programs became toxic to the work environment. Those that stuck that out were fired or quit when they refused to get the COVID shots.
The discipline issue is more complex than bringing in board and management members who “have a deep understanding of how freight moves.”
Chris Boza is incorrect on one of his statements. The NS never imposed or dismissed any employees over the vaccine mandate. The mandate was never implemented.
The PSR mandate that Ancora is proposing caused many seasoned employees to give up an extremely beneficial retirement plan because the implementation is concerned about profit only. Employees and safety are not in the top priorities of PSR, only maximizing stock growth.
As happened when past management instituted PSR it will cripple the company in the long run creating more stress on the supply chain while profits go to the board until no more blood can be squeezed out of the company at which point Ancora group will sell off its stock and sail off with its golden parachute.
Would we be surprised if Ancora does not show up for the meeting? Ancora could certainly come up with any number of reasons including delay of operating plan.
It’s all about short term profits, and long term O R. Nothing else matters. Stupid is as stupid does.
Same B S as Ancora has previously stated. The STB should immediately tell them they have seen such plans before have a devastating affect on railroads service and safety and they do not want a repeat of it.