Form 4: CSX Corp Executive Kevin S. Boone Reports Changes in Beneficial Ownership

EVP & CCO of CSX Corp, Kevin S. Boone, reports acquisition and disposal of common stock and derivative securities, including stock withholding for tax obligations and awards under the company's Long-Term Incentive Plan.

Summary

• On February 14, 2025, Kevin S. Boone, EVP & CCO of CSX Corp, reported changes in beneficial ownership of CSX common stock and derivative securities.
• These changes include the withholding of shares to satisfy tax obligations at a price of $33.37.
• Boone also acquired 18,880 restricted stock units (RSUs) and 62,014 options under the CSX Corporation 2025-2027 Long-Term Incentive Plan.
• The RSUs and options vest in three equal installments on February 14, 2026, February 14, 2027, and February 14, 2028.
• Following these transactions, Boone directly owns 196,843 shares of common stock and indirectly owns 1,728 shares through the CSX Corporation 401(k) Plan and 1,500 shares through a Spouse's IRA.
• He also directly owns 62,014 options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transactions are routine and reflect standard executive compensation practices. The awarding of RSUs and options suggests confidence in the company's future performance.

Positives

• The awarding of restricted stock units and options to the executive suggests a continued alignment of interests between management and shareholders.
• The vesting schedule of the RSUs and options provides a long-term incentive for the executive.

Future Outlook

The document outlines future vesting dates for the awarded RSUs and options, indicating a long-term incentive structure for the executive.

Industry Context

Executive compensation and stock ownership are common practices in publicly traded companies like CSX to align management's interests with those of shareholders. The use of RSUs and options is a typical component of long-term incentive plans.

Comparison to Industry Standards

• CSX's executive compensation practices, including the use of stock options and restricted stock units, are generally in line with industry standards for large publicly traded companies.
• Companies like Union Pacific (UNP) and Norfolk Southern (NSC) also utilize similar long-term incentive plans for their executives.
• The vesting schedules and performance metrics associated with these plans are often benchmarked against peer companies to ensure competitiveness and alignment with shareholder value creation.

Stakeholder Impact

• The reported transactions have a minor impact on shareholders, as they primarily involve executive compensation and do not significantly alter the overall ownership structure of the company.
• Employees participating in the CSX Corporation Savings Thrift Plan are indirectly affected by the changes in the CSX Stock Fund.

Key Dates

Keywords

CSX, Beneficial Ownership, Form 4, Executive Compensation, Stock Options, Restricted Stock Units, Kevin S. Boone