NSC COO John Orr has history of abusive behavior, activist Ancora says

107397494 1712331273852 gettyimages 1252235597 95323040105 norfolk southern

107397494 1712331273852 gettyimages 1252235597 95323040105 norfolk southern

Norfolk Southern is currently facing opposition from activist investor Ancora, who is seeking to make changes to the railroad’s board of directors and remove CEO Alan Shaw. Ancora is also targeting the new operating chief, John Orr, for what they perceive as an excessive buyout package and a controversial history of workplace misconduct, including allegations of racial and sexual discrimination.

Ancora has highlighted instances of Orr’s past misconduct, such as verbally abusive behavior towards employees, dating back to his time at Canadian National. Despite overseeing operational improvements at Norfolk Southern, Ancora is questioning the hiring decision and advocating for Orr’s removal.

Additionally, Ancora brought attention to a lawsuit filed in 2019 by a Black executive against Canadian National, alleging racial discrimination by Orr. Norfolk Southern stands by Orr’s performance and integrity, dismissing Ancora’s claims as distractions from the real issues within the company.

The shareholder meeting is scheduled for May 9, with Ancora receiving support from stakeholders like Neuberger Berman in its campaign against Norfolk Southern. Despite settlement attempts, the two sides seem unlikely to reach a resolution, with differences in board governance and leadership at the core of the dispute.

Norfolk Southern is currently facing a battle with activist investor Ancora, which is pushing to shake up the railroad’s board and remove CEO Alan Shaw. Recently, Ancora has turned its attention to Norfolk Southern’s new operating chief John Orr, raising concerns about his “excessive” buyout package and allegations of misconduct in his career history. Ancora has highlighted past workplace misconduct by Orr, including verbal abuse towards a female employee and allegations of racial discrimination. Despite these concerns, Orr has been credited for overseeing improvements in the railroad’s operations since his hiring. Ancora has criticized Norfolk Southern for the costly hiring of Orr, which included paying his previous employer $25 million in cash and providing concessions for a key rail hub and route in the southern U.S. Norfolk Southern defended the hiring of Orr, stating that Ancora’s analysis of the value of the route is inaccurate and based on a flawed premise. Ancora is seeking to replace CEO Alan Shaw and Orr with former UPS CEO Jim Barber and former CSX Executive Vice President Jamie Boychuk. Despite attempts to settle with the company, a resolution appears unlikely as both sides have differing views on the future leadership of Norfolk Southern. Other stakeholders, like Neuberger Berman, have backed Ancora’s efforts citing concerns over poor governance at the railroad. The shareholder meeting is scheduled for May 9, and a settlement between the two sides remains uncertain. Analysts believe the situation will continue to escalate as Norfolk Southern and Ancora remain at odds over the direction of the company.

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