Norfolk Southern announced that its incoming CEO, Mark George, will receive a salary increase to $1 million after being promoted from his previous position as chief financial officer. Along with his base salary, George will be eligible for a bonus of $2.25 million and will receive significant stock awards based on his performance. George’s previous salary as CFO was $675,000 before taking on the role of CEO following the dismissal of Alan Shaw, the former CEO who was fired by the board due to an inappropriate consensual relationship with the chief legal officer.
The Atlanta-based railroad revealed the details of George’s compensation in a filing with the Securities and Exchange Commission. The specifics of Shaw’s severance package have not been disclosed at this time. Additionally, George will also be granted $4 million in stock by Norfolk Southern and will be eligible for a long-term incentive grant of $10 million in stock in January.
Norfolk Southern has been under scrutiny for safety measures since a train derailed and caught fire in East Palestine, Ohio, in February 2023. Due to the incident, half of the town had to be evacuated as officials decided to burn the vinyl chloride inside the tank cars, resulting in thick, black smoke. Despite the recent changes in leadership, the railroad emphasized that Shaw’s termination was not related to the company’s financial performance.
The company assured that it is on track to meet its financial goals for the year as George continues the planned operational restructuring initiated earlier in the year when Norfolk Southern was dealing with pressures from activist investor Ancora Holdings. Although Ancora Holdings succeeded in electing three directors to the board, they did not have enough influence to oust Shaw as they had suggested.
Norfolk Southern operates as one of the largest railroads in the United States, with tracks spanning across the Eastern region of the country.
