Ancora Holdings LLC, a major shareholder of Norfolk Southern Corp. (NSC), expressed disapproval on Friday concerning the recent assignment of John Orr as the company's new Chief Operating Officer.
In a letter dispatched to Norfolk's shareholders, Ancora articulated concerns over what it perceives as the Board's lack of sound judgement in failing to actively seek out a more experienced candidate for the role.
The firm indicated that Norfolk's Board did not contemplate the merits of Ancora's recommended candidate, Jamie Boychuk, for the position of COO.
In addition, Ancora insinuated in their correspondence that the railroad company squandered over $84 million to appoint Orr, who has faced allegations of unprofessional conduct and severe misbehavior in his professional environment, as derived from legal documents discovered by the investment firm.
Ancora ended the letter with a declaration that they intend to hold the Board accountable at the imminent annual meeting, expressing readiness to compromise only if the Board consents to the proposed management alterations.
As of now, Norfolk's shares are being traded at $249.84, reflecting a 0.54 percent increase on the New York Stock Exchange.
