Norfolk Southern announced on Thursday that it has reached an agreement with Ancora Holdings, aimed at preventing the investor from repeating its efforts to gain control of the railroad as seen earlier this year.

As part of this new deal, Norfolk Southern will appoint an additional independent director to its board and focus on enhancing operational efficiencies.

In return, Ancora has agreed to withdraw its nominations for four new directors for the upcoming annual meeting. Earlier in the year, the Ohio-based investment firm successfully secured three seats on the board, but was unable to obtain sufficient representation to enact major changes, such as a management overhaul, that it had been advocating for.

Significant management shifts occurred in September, following the termination of former CEO Alan Shaw due to an inappropriate relationship with the chief legal officer of the railroad. Following Shaw’s departure, Chief Financial Officer Mark George was elevated to lead the company, teaming up with a newly hired operating chief who joined in the spring amidst the ongoing dispute with Ancora.

George has indicated that he intends to continue pursuing the strategy that Shaw had put forth, which emphasizes maintaining a robust set of resources during economic downturns. This approach aims to enhance service delivery and prepare for increased shipments when the economy rebounds. However, he has also made it clear that he will not accept underperformance and will strive to increase the railroad’s profitability and efficiency.

“We are making meaningful progress on key operational metrics, as evidenced by our strong third quarter 2024 results in which we drove productivity, grew volumes, and delivered notable margin improvement,” George stated.

Frederick DiSanto, Chairman and CEO of Ancora, and James Chadwick, who oversees Ancora Alternatives, expressed optimism about the progress being made.

“In our view, it’s a new day at Norfolk Southern following board refreshment, management enhancements, and new leadership’s efforts to establish a disciplined and operationally led network,” they said in a joint statement.

Norfolk Southern Corp., headquartered in Atlanta, stands as one of the largest railroads in the United States, with an extensive network of tracks traversing the eastern portion of the country.