Ancora Accelerates Personal Attacks on NS’s Shaw

Norfolk Southern President and CEO Alan Shaw. NS photo

Editor’s Note: As expected, things are getting ugly. The latest press release from Ancora Holdings Group, LLC is taking the personal attacks on Norfolk Southern President and CEO Alan Shaw to a new level. The activist investor is “expressing concern about NS’s lobbying efforts, which appear to be about using misinformation and inappropriate influence to protect Mr. Shaw’s status as one of the railroad industry’s highest-paid executives.” The group also “remains inspired by President Joe Biden’s statements about the importance of holding Norfolk Southern accountable.” – William C. Vantuono

The following statement was issued after the Surface Transportation Board publicized Federal Railroad Administrator Amit Bose’s letter to Shaw:

“We agree with the Federal Railroad Administration’s statement that Norfolk Southern’s path to ‘immediate and long-term success is through a relentless focus on safety.’ 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.

“We believe Chair Amy Miles and the Board have presided over yet another failure of oversight by allowing CEO Alan Shaw to allocate millions of dollars to wide-ranging lobbying and public relations efforts, which now appear to be geared toward saving his role as one of the railroad industry’s highest-paid executives. We know for a fact that the Company’s private jets have been heading to Washington, D.C. with great frequency since we privately nominated a slate of director candidates in November 2023.

“According to public records, the Company is represented by 41 lobbyists, who are tasked with engaging governmental bodies that include the Department of Transportation, Surface Transportation Board and Federal Railroad Administration. Nearly 80% of these lobbyists are considered ‘revolvers,’ meaning they previously worked at the very government entities they are now talking to on behalf of Mr. Shaw and Norfolk Southern. Fortunately, dedicated and engaged public officials are likely to see through Norfolk Southern’s defensive efforts and villainizing of the Investor Group.

“While Mr. Shaw is allowed to continue wasting money on self-serving lobbying and public relations strategies, rather than allocating that stream of funds to safety initiatives, we are going to focus on facts that include:

• “Our slate’s Scheduled Network strategy would position the Company 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.
• “Our slate’s top priority is safety because Norfolk Southern cannot deliver sustained value for any stakeholder without first establishing a safety-first culture. Company billboards and photo ops do not translate to a real safety-first culture.
• “Our slate is publicly committing to releasing a 100-day transition plan and detailed strategy overview after it is able to begin soliciting support for proposals at the 2024 Annual Meeting.
• “Mr. Shaw has had more than 30 years to help establish a safety-first culture at Norfolk Southern, but stakeholders continue to have legitimate concerns about the lapses that are still occurring.
• “Mr. Shaw has never held a senior role in operations, which is typically where safety protocols are established and enforced.
• The employees and partners of Ancora, which is an Ohio-based asset manager that serves the needs of individuals, families, pension funds and other institutions, 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.”