(The Associated Press circulated the following article on March 24.)
NORFOLK, Va. — Norfolk Southern Corp.’s former chairman, David R. Goode, received $14.5 million in compensation last year _ a 26 percent increase over 2004, according to a regulatory filing.
His successor, Charles W. Moorman, also got a hefty raise–to $6 million in 2005 from $1.6 million the prior year, according to the company’s proxy statement, filed Thursday with the Securities and Exchange Commission.
Moorman, who became the railroad’s president in 2004, assumed the CEO title in November 2005. He got the chairman title last month.
The two executives’ increases–largely from stock-related compensation–came as the railroad boasted record revenue and earnings. The company reported $8.5 billion in revenue last year, up 17 percent from 2004. Its earnings soared 39 percent to $1.3 billion.
Goode, who recently retired, received $5.77 million in payments from the railroad’s long-term incentive plan. That was more than double from 2004.
He also collected restricted stock awards last year worth $3.75 million, up from $3.57 million in 2004. And, he was awarded 110,000 stock options with an estimated value of $1.36 million.
As of January, Goode owned or controlled nearly 3.2 million shares of the railroad’s stock. His stake was worth $168.3 million at Thursday’s closing price of $52.89.
Other compensation–including payments made to his 401(k), life insurance and the use of corporate aircraft–added up to $623,778, compared to $739,026 in 2004. Goode’s salary of $1 million and his bonus of $2 million remained the same in both years.
Goode’s compensation put him behind CSX Corp. Chief Executive Officer Michael J. Ward, who took home $22.69 million in 2005.
In terms of total annual revenue, Norfolk Southern ranks a close fourth behind Jacksonville, Fla.-based CSX, which had $8.6 billion in sales last year. The largest railroad is Union Pacific Corp., of Omaha, Neb., followed by Burlington Northern Santa Fe Corp. of Fort Worth, Texas.
Norfolk Southern’s Moorman received restricted stock awards worth $3.07 million in 2005, up from $334,500 in 2004, according to the proxy statement. His salary rose from $368,750 in 2004 to $650,000 last year, and it increased again to $750,000 in January. Also rising was his bonus–to $975,000 in 2005, more than quadrupling from the prior year.
Moorman received payments of $721,605 last year from Norfolk Southern’s long-term incentive plan, compared to $328,895 in 2004. He was also awarded 45,000 stock options worth $555,300.
Norfolk Southern plans to hold its annual meeting on May 11 in Norfolk, according to the proxy statement.