Form 4: CSX CFO Kevin Boone Boosts Stake with RSU and Option Awards

CSX Corporation's EVP & CFO, Kevin S. Boone, received significant equity awards, including restricted stock units and stock options, as part of the company's long-term incentive plan.

Summary

• Kevin S. Boone, Executive Vice President and Chief Financial Officer of CSX Corp, was awarded 15,241 restricted stock units (RSUs) on February 26, 2026.
• These RSUs were granted under the CSX Corporation 2026-2028 Long-Term Incentive Plan and vest in three equal installments on February 26, 2027, February 26, 2028, and February 26, 2029.
• Mr. Boone also received 75,982 stock options on February 26, 2026, with an exercise price of $42.65.
• These options were also awarded under the CSX Corporation 2026-2028 Long-Term Incentive Plan, vest in three equal installments on February 26, 2027, February 26, 2028, and February 26, 2029, and expire on February 26, 2036.
• Following these transactions, Mr. Boone directly beneficially owns 208,622 shares of Common Stock.
• Indirect beneficial ownership includes 1,753 shares through the CSX Corporation 401(k) Plan and 1,500 shares through a Spouse's IRA.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as it signifies continued alignment of executive interests with shareholder value through routine, performance-based compensation.

Positives

• The awards align management's interests with long-term shareholder value through equity-based compensation.
• The multi-year vesting schedule for both RSUs and options incentivizes sustained performance and executive retention.

Future Outlook

The vesting schedule for the restricted stock units and stock options extends through February 2029, indicating a continued alignment of executive incentives with the company's long-term performance goals.

Industry Context

StockSavvy.ai notes that executive equity awards, such as restricted stock units and stock options, are a common and established practice across the railroad and broader transportation industry. These awards are designed to align the interests of key management personnel with those of shareholders, fostering long-term value creation and executive retention.

Comparison to Industry Standards

• StockSavvy.ai notes that equity-based compensation, particularly RSUs and stock options with multi-year vesting schedules, is a standard practice across the railroad and broader transportation industry.
• This approach is consistent with compensation strategies observed at major competitors like Union Pacific (UNP) and Norfolk Southern (NSC), which also utilize long-term incentive plans to incentivize executive performance and retention.
• The structure of these awards, linking compensation to future performance and stock price appreciation, is a global benchmark for executive incentive programs.

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to increased alignment of executive compensation with long-term company performance and shareholder value creation.
• Employees: No direct impact mentioned, but a well-incentivized leadership team can contribute to overall company stability and success.

Next Steps

• The restricted stock units and stock options will vest in three equal installments on February 26, 2027, February 26, 2028, and February 26, 2029.

Key Dates

Recommendation

This Form 4 reports routine executive compensation in the form of restricted stock units and stock options, aligning management's interests with long-term shareholder value. It does not present new information that would alter the fundamental investment thesis for CSX, thus a 'hold' recommendation is appropriate.

Keywords

CSX, Form 4, insider transaction, executive compensation, restricted stock units, stock options, Kevin Boone, long-term incentive plan