Norfolk Southern is bolstering its board as it seeks to fend off a shareholder-activist group waging a proxy battle against the freight railroad.
The Wall Street Journal says the rail operator is seeking to add former Amtrak and airline executive Richard Anderson, and former U.S. senator Mary Kathryn “Heidi” Heitkamp to its board of directors. This comes as a move against investor group Ancora Holdings, which is looking to overhaul Norfolk Southern’s leadership through its roughly $1 billion stake in the carrier.
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Ancora’s slate of new directors includes former Ohio Gov. John Kasich. It also wants to install former United Parcel Service executive Jim Barber and former CSX official Jamie Boychuk in the top two management posts. Norfolk Southern warns in its proxy materials that Boychuk has a reputation for extreme cost-cutting. That’s a potentially precarious path for the railroad, which faces intense regulatory scrutiny after a train carrying toxic chemicals derailed in East Palestine, Ohio on February 3, 2023.
