Norfolk Southern and Ancora have reached a settlement to avoid a proxy fight.

This settlement includes expanding Norfolk Southern's board and appointing a new independent director.

The settlement comes after tensions between the company and Ancora, who had previously nominated candidates for board positions.

The settlement indicates a strategic shift for Ancora, as they aim to work collaboratively with Norfolk Southern to improve governance and operational efficiency.

The board restructuring is seen as a step towards addressing shareholder concerns and improving corporate governance.

Activist investors like Ancora play a crucial role in shaping corporate governance practices.

The settlement between Norfolk Southern and Ancora marks a turning point for the company as it navigates corporate governance and operational efficiency.