01:05 PM EST, 11/14/2024 (MT Newswires) -- Norfolk Southern ( NSC ) said Thursday that it struck a cooperation agreement with activist shareholder Ancora Holdings that will see the two parties collaborate on identifying a new independent director.

Ancora agreed to withdraw its planned nomination of four directors, and vote at the 2025 annual shareholder meeting in accordance with recommendations made by the railroad operator's board.

Shares of Norfolk dropped 1.9% in midday trade.

"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," Norfolk Chief Executive Mark George said in a statement.

In September, Norfolk Southern ( NSC ) terminated then-Chief Executive Alan Shaw after an investigation found he had an inappropriate workplace relationship. Ancora had been pushing for Shaw's resignation. Ancora secured three board seats at Norfolk in May after nominating seven directors earlier this year.

"In our view, it's a new day at Norfolk Southern ( NSC ) following Board refreshment, management enhancements, and new leadership's efforts to establish a disciplined and operationally led network," Ancora Chief Executive Frederick DiSanto and Ancora Alternatives President James Chadwick said in a joint statement.

Norfolk, responsible for the Eastern Ohio train derailment in 2023, last month reported adjusted earnings per share of $3.25 for the third quarter, up 23% year over year.

Price: 263.94, Change: -5.32, Percent Change: -1.98