Miles continued, We are open-minded to all opportunities to enhance shareholder value and are
committed to overseeing and holding our management team accountable. We are confident that the continued execution of our balanced strategy under the vision and leadership of Alan Shaw is critical as we prioritize operational rigor,
safety, and service. It is imperative the company continues to execute on its strategy, without interruption or interference, for the benefit of shareholders, customers, communities, and the industry.
Miles added, Following numerous discussions with representatives of Ancora and its nominees, we have determined that none of them possess skills or
experience that are not already well represented among our board nominees. Further, it would be highly disruptive to our operations, our workers, and the North American supply chain to replace a majority of our well-functioning board, which we have
refreshed in a thoughtful and intentional manner over the last several years in order to adopt Ancoras short-sighted strategy. The board is unanimous in rejecting Ancoras candidates and remains unwavering in its commitment to act in the
best interests of all shareholders.
Directors Thomas Bell and Steven Leer will not stand for re-election at the 2024 Annual Meeting and as
previously announced, Directors Mitchell Daniels, Jr. and Michael Lockhart have reached the mandatory retirement age and are retiring from the Norfolk Southern Board at the 2024 Annual Meeting.
Miles concluded, We are grateful to Tom, Steve, Mitch, and Michael for their meaningful contributions to Norfolk Southern, and in turn look forward to
welcoming Heidi and Richard to the board.
Relentless focus on safety and service while working to drive significant margin improvement through a
balanced strategy
Following the East Palestine incident a year ago, Norfolk Southern has made necessary investments to accelerate enhancements to its
safety culture and operational transformation. This includes new technology, enhanced training and additional staffing, as well as adjustments to network design and train assembly procedures. Today, the companys mainline accident rate is the
lowest it has been in years and is among the best of the US Class 1 rails. These investments and operational advancements have meaningfully improved the companys safety performance and service product in both its intermodal and
merchandise networks. The company has fundamentally transformed its processes to reaffirm the trust of its customers, establish confidence with communities, and regain the trust of regulators to position it for sustainability and success in 2024 and
beyond.
Today, under Shaws leadership, Norfolk Southerns plan is focused on three pillars: safely delivering reliable and resilient service,
driving continuous efficiency improvement, and propelling smart and sustainable growth. The companys goal is to create a more resilient railroad with a compelling service product to outperform throughout market cycles. As part of that effort,
the company is building a more fluid network positioned to take on additional volume and better serve customers so it can deliver on its commitments of top-tier earnings and revenue growth with industry-competitive margins and disciplined capital
allocation. Through its scheduled operating model, the company will drive productivity through its network that will result in meaningful annual margin improvements and drive long-term shareholder value.
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