CSX CEO was paid $10 million in 2001
CSX Corp. Chairman and Chief Executive John Snow's compensation package for fiscal 2001 amounted to $10 million, including $7.1 million in restricted stock awards, according to a news article at CBSMarketwatch.com.
Snow's salary for the year was $1.2 million with a $1 million bonus, compared with a $1 million salary and no bonus in 2000, according to a proxy filing with the Securities and Exchange Commission.
The executive also received $753,057 in other compensation, the filing said, that included personal benefits, like life insurance premiums, and matching contributions under the company's savings plan.
In addition, CSX granted Snow options for 800,000 shares of the company's common stock. The options have an estimated value of $8 million, the filing said.
UP execs get big stock incentives
The chairman and chief executive of Union Pacific Corp. received $6.5 million in stock incentives plus $1.2 million in compensation for 2001.
Richard K. Davidson's salary was $1.1 million and he was given other compensation of $107,945, according to a regulatory filing.
Davidson also received $4.5 million in restricted stock awards and nearly $2 million in stock options.
The president and chief operating officer for Union Pacific Railroad, I. Evans, received $2.6 million in stock incentives plus a $683,340 salary in 2001.
According to the Securities and Exchange Commission filing, Davidson and other executives chose to pass on $7.8 million in 2001 cash bonuses in exchange for restricted stock equal to 150 percent of the amount of the bonuses.
CP spinoff pays off for rail executives
Last year's breakup of Canadian Pacific Ltd. into five separate companies resulted in big payouts for executives at Canadian Pacific Railway.
Robert Ritchie, president and chief executive officer of CPR, pocketed $8.6 million last year (all figures in Canadian dollars), including $5.5 million by exercising stock options and $1.7 million through a long-term incentive plan. He will also receive another long-term incentive bonus this year worth as much as $1.7 million.
The four-year incentive plan was shortened by a year because of the breakup, according to the management proxy circular that was made available to shareholders on March 6.
The breakup also allowed executives to cash in options in Canadian Pacific Ltd. early and helped boost the value of those shares. Ritchie is sitting on another $2.4 million in CPR stock options, some of which will not be exercisable for several years.
Ed Dodge, CPR's chief operating officer, made $3.4 million in 2001, including $2.8 million by exercising stock options. He will also receive a long-term bonus this year of as much as $1 million.
Mike Waites, the railway's chief financial officer, made $1.5 million in 2001, including $1 million by exercising stock options. His long-term bonus will be as much as $764,750 when it is awarded at the end of the year.
CN's Tellier paid $2.7 million in 2001
In 2001, Paul Tellier, the president and chief executive on Canadian National Railway, was paid more than $2.7 million (figures in U.S. dollars) in salary, bonuses, and other compensation.
The package included $904,159 in salary, a bonus of $797,400, a long-term incentive payment of $978,900 and other compensation of $43,598.
In 2000, he took home a $807,972 salary and $605,979 bonus.
Warrington to leave top Amtrak post
The president of Amtrak, George Warrington, plans to resign his post to become executive director of New Jersey Transit.
Reports indicate that Warrington would remain at Amtrak until an interim successor was named, but did not state when he would move to New Jersey Transit.
Mr. Warrington, 49, has been president of Amtrak for four difficult years in which the railroad tried to end its reliance on operating subsidies from the federal government. Under a deadline set by Congress in 1997, Amtrak must meet its operating costs from internal revenues by the end of this year.
But Warrington has acknowledged that the deadline cannot be met, and Congress is threatening to dismantle the company. A panel recommended last month that Amtrak be broken up and the job of running trains be opened to competition.
Here's why we need a long memory...
If there's ever a case where railroad workers need a long memory, consider Sen. Rick Santorum (R-Pa.), according to the newsletter of the Transportation Communications International Union (TCU), TCU Interchange.
During his re-election campaign in 2000, Santorum "wrote a letter to Pennsylvania rail workers and retirees boasting of his support for the railroad retirement" reform bill Congress cleared in late December 2001.
"But once re-elected, he refused to co-sponsor the bill, then voted for killer amendments" which failed. "Having failed to defeat the bill that way," Santorum and others "ultimately voted in favor," TCU Interchange adds.
Hopefully, railroad workers in Pennsylvania will remember this if Santorum runs for re-election when his term expires in 2006.
FRA to require safety plan before freight mergers
Freight railroads involved in proposed mergers must submit plans with the government during federal review of such deals to ensure safe operations, according to regulations approved by the Bush administration on March 18.
The new rule stemmed from safety lapses, some serious, during large-scale industry consolidation in the mid-1990s, the Federal Railroad Administration said. Two of those deals created the Burlington Northern Santa Fe Railway and bolstered Union Pacific Corp.
During subsequent deals, federal rail regulators and the Surface Transportation Board, the agency that evaluates the competitive impact of proposed rail mergers, agreed to obtain safety plans as a condition of review.
The rules made final on March 18 make safety plans a formal requirement to be overseen by the FRA.
"The adoption of these new rules is a clear recognition of the value the administration places on the safety of the nation's rail network and the effects consolidation can have on the industry," said FRA Administrator Allan Rutter.
© 2002 Brotherhood of Locomotive Engineers