Form 4: Norfolk Southern EVP John F. Orr Reports Stock Option and Restricted Stock Unit Grants

EVP and Chief Operating Officer of Norfolk Southern, John F. Orr, reports the grant of stock options and restricted stock units under the company's Long-Term Incentive Plan.

Summary

• John F. Orr, EVP & Chief Operating Officer of Norfolk Southern Corp, filed a Form 4 on February 3, 2025.
• The report details the grant of stock options and restricted stock units (RSUs) under the Norfolk Southern Corporation Long-Term Incentive Plan.
• On January 30, 2025, Orr was granted options to purchase 7,099 shares of common stock at an exercise price of $257.26, exercisable from January 30, 2028, and expiring on January 29, 2035.
• Additionally, 2,410 Restricted Stock Units were granted, which will vest ratably in three annual installments starting on the first anniversary of the grant date and will be settled in Common Stock.
• Following these transactions, Orr directly owns 7,099 options and 30,180 Restricted Stock Units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects standard executive compensation practices, which are generally viewed favorably as they align management interests with shareholder value.

Positives

• The grant of stock options and RSUs aligns the executive's interests with those of the shareholders, incentivizing performance and long-term value creation.
• The vesting schedule of the RSUs encourages continued service and commitment to the company.

Industry Context

Grants of stock options and restricted stock units are common practice in executive compensation packages within the transportation and logistics industry, aligning executive incentives with shareholder value.

Comparison to Industry Standards

• Executive compensation packages, including stock options and RSUs, are standard practice among publicly traded companies like Union Pacific (UNP) and CSX Corporation (CSX).
• The size and terms of these grants are typically benchmarked against peer companies to ensure competitiveness and alignment with performance goals.
• Vesting schedules for RSUs, such as the three-year ratable vesting in this case, are also common in the industry.

Stakeholder Impact

• Shareholders may view the grants positively as they incentivize management to improve company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership.

Key Dates