NEW YORK -- The chairman, president and chief executive of railroad operator CSX Corp. received compensation of about $7.3 million last year, a 16 percent raise from a year earlier, according to an Associated Press analysis of data filed with regulators Tuesday (March 24).
In a proxy filing with the Securities and Exchange Commission, the company said Michael J. Ward took home a base salary of $1.06 million in 2008, compared with $1 million in 2007. He received a performance-based cash bonus of more than $2 million.
Ward also received perks valued at $211,530. That includes a $15,000 allowance, which each top executive at CSX receives, as well as amounts for personal aircraft usage, financial planning services, a physical examination, extra liability insurance, life insurance and discounts at The Greenbrier resort, which CSX owns.
Jacksonville, Fla.-based CSX requires Ward to travel on company aircraft. That specific perk was valued at about $106,050, or about $2,100 per flight hour.
The bulk of Ward's compensation was in stock options and restricted stock, which were worth about $4 million on the day they were granted. However, CSX stock closed at $65.08 on the day the awards were doled out last year, compared with a closing price of $26.89 on Tuesday. Because of the steep decline in CSX shares since the awards were granted, they are currently of little value absent a major rebound in stock price.
The head of CSX's chief rival, Norfolk Southern Corp. CEO Charles W. Moorman IV, received 2008 compensation of more than $12 million last year, a 3 percent raise from 2007, according to the AP's analysis.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
CSX earned $1.37 billion, or $3.34 per share in 2008, compared with $1.34 billion, or $2.99 per share, in 2007. Shares fell 26 percent to end the year at $32.47 and have continued to slide amid market volatility and the weak economy.
The year was a tumultuous one for the railroad operator. Activist shareholder hedge funds TCI, which manages The Children's Master Investment Fund, and 3G Capital Management urged the company to separate the roles of chairman and chief executive (both held by Ward) and make other changes to improve operations.
After being locked in a legal battle with the hedge funds for more than a year, CSX brought on four of the fund's representatives to its 12-member board in September.
Earlier this month, CSX said a New York Federal Court approved a settlement in which the railroad operator will be paid $11 million by the two funds over alleged securities law violations.
(The preceding article by Samantha Bomkamp was distributed March 25, 2009, by the Associated Press.)
CSX CEO gets compensation valued at $7.3 million for 2008
(The Associated Press circulated the following story by Samantha Bomkamp on March 24, 2009.)
NEW YORK The chairman, president and chief executive of railroad operator CSX Corp. received compensation of about $7.3 million last year, a 16 percent raise from a year earlier, according to an Associated Press analysis of data filed with regulators Tuesday.
In a proxy filing with the Securities and Exchange Commission, the company said Michael J. Ward took home a base salary of $1.06 million in 2008, compared with $1 million in 2007. He received a performance-based cash bonus of more than $2 million.
Ward also received perks valued at $211,530. That includes a $15,000 allowance, which each top executive at CSX receives, as well as amounts for personal aircraft usage, financial planning services, a physical examination, extra liability insurance, life insurance and discounts at The Greenbrier resort, which CSX owns.
Jacksonville, Fla.-based CSX requires Ward to travel on company aircraft. That specific perk was valued at about $106,050, or about $2,100 per flight hour.
The bulk of Ward's compensation was in stock options and restricted stock, which were worth about $4 million on the day they were granted. However, CSX stock closed at $65.08 on the day the awards were doled out last year, compared with a closing price of $26.89 on Tuesday. Because of the steep decline in CSX shares since the awards were granted, they are currently of little value absent a major rebound in stock price.
The head of CSX's chief rival, Norfolk Southern Corp. CEO Charles W. Moorman IV, received 2008 compensation of more than $12 million last year, a 3 percent raise from 2007, according to the AP's analysis.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
CSX earned $1.37 billion, or $3.34 per share in 2008, compared with $1.34 billion, or $2.99 per share, in 2007. Shares fell 26 percent to end the year at $32.47 and have continued to slide amid market volatility and the weak economy.
The year was a tumultuous one for the railroad operator. Activist shareholder hedge funds TCI, which manages The Children's Master Investment Fund, and 3G Capital Management urged the company to separate the roles of chairman and chief executive (both held by Ward) and make other changes to improve operations.
After being locked in a legal battle with the hedge funds for more than a year, CSX brought on four of the fund's representatives to its 12-member board in September.
Earlier this month, CSX said a New York Federal Court approved a settlement in which the railroad operator will be paid $11 million by the two funds over alleged securities law violations.
Wednesday, March 25, 2009
-- Edited by Troll on Wednesday 25th of March 2009 11:43:54 AM
