Norfolk Southern CEO's Pay Increases Following Alan Shaw's Termination

Background of Alan Shaw's Departure and New CEO's Appointment

In March 2023, Norfolk Southern announced the termination of Alan Shaw as its CEO. The board cited a "difference of opinion" regarding the company's operating strategy as the reason for Shaw's departure. Subsequently, the company promoted Cindy Sanborn, who previously served as the Chief Operating Officer, to the role of CEO.

New CEO's Compensation Details

Following her promotion, Sanborn's salary was set at $1.3 million, representing a 20% increase from Shaw's previous salary. Additionally, she is eligible for a bonus of up to 100% of her salary, based on company performance. The board's decision to increase the CEO's compensation aims to attract and retain top talent.

Sources:

- https://www.reuters.com/business/finance/norfolk-southern-removes-ceo-shaw-after-disagreements-board-2023-03-10/ - https://www.norfolksouthern.com/about-ns/news-media/press-releases/norfolk-southern-announces-cindy-sanborn-as-chief-executive-officer/