(The following story by Robert McCabe appeared on The Virginian-Pilot website on March 14, 2010.)
NORFOLK, Va. — At Norfolk Southern Corp., the buck stops here when it comes to bonuses.
The pay packages of its eight highest-ranking executives took a hit in 2009, another reflection of the tough year just passed, according to the company’s recently released proxy statement. Everyone’s performance bonus, pegged to company benchmarks, was off by at least 62 percent from 2008.
Wick Moorman, the railroad’s chairman, president and CEO, made $12.8 million in total compensation for 2009, down 8 percent from $13.9 million the previous year. His performance bonus dropped 65 percent – from $1.76 million to $613,700. His base pay remained the same, at $950,000.
Moorman’s perks for the year included $38,626 for use of corporate aircraft and $4,800 for annual physicals.
The railroad’s net income dropped to $1.03 billion for the year, down from $1.71 billion in 2008, a nearly 40 percent plunge. Total revenues slid to about $8 billion, from $10.7 billion a year earlier, reflecting the recession’s impact on rail freight.