(The following story by Timothy J. Gibbons appeared on the Florida Times-Union website on March 22.)
JACKSONVILLE, Fla. — In a year in which Jacksonville-based railroad CSX Corp. earned $1.145 billion — more than double its earnings from the year before — its chief executive officer raked in $22.6 million in total compensation.
That figure includes $19.9 million in cash and stock earned as part of the company’s long-term incentive package, which covered both 2004 and 2005. Over those two years, a key measure tracked by the company based upon operating income increased by 56 percent, triggering the multi-million dollar payout.
The company does not generally offer stock options or have other award systems utilizing stock.
The rest of CEO Michael Ward’s compensation came from his $947,792 base salary and $1.8 million bonus, the largest bonus he’s received since taking the reins of the company in 2003, according to a document filed with the Security and Exchange Commission.
Most of the company’s peers have not filed the documents required by the SEC, although they are expected to be turned in later this week.
The other railroad that did file, Burlington Northern Santa Fe Railway, reported that its CEO earned $5.9 million in 2005, including a $1.1 million base salary, $2.5 million bonus and $2.2 million in stock and stock options.
The BNSF chief, Matthew Rose, was the highest paid of the big railroad executives in 2004, bringing in $11 million, followed by Norfolk Southern CEO David Goode, who earned a total of $10.2 million. That year, Ward was the caboose on the train, earning a total of $2.1 million.
CSX’s stock closed at $58.62 Monday, down 95 cents or 1.6 percent.