CLEVELAND – Ancora Holdings’ campaign to oust Norfolk Southern’s management team last week gained the support of New York investment management firm Neuberger Berman, which said it has concerns about the railroad’s operations, strategy, safety, and service.
“We believe a change in management and refreshment of the board … are warranted and could stimulate improved operations and thus equity performance,” Neuberger Berman said in a statement.
Separately, Ancora issued a letter to NS shareholders last week that increased its criticism of the railroad’s decision to hire Canadian Pacific Kansas City executive John Orr as chief operating officer.
Ancora has blasted NS for paying CPKC $25 million and making concessions regarding the railroads’ Meridian Speedway joint venture in order to hire Orr and free him from a non-compete clause in his contract.
Not mentioned in the letter: If NS chose to hire Ancora’s chief operating officer candidate, former CSX executive Jamie Boychuk, it likely would have to pay a similar fee to CSX. Boychuk, who was dismissed as CSX’s executive vice president of operations in August, remains subject to a non-compete agreement, according to CSX.
Note: Updated at 5:17 p.m. Central to remove reference to EdgePoint, which has ended its relationship with Ancora Holdings.
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