Industry News Briefs....

CSX paid Snow $68.9 million when he left

Treasury Secretary John W. Snow left CSX Corp. with $68.9 million in deferred compensation and other pay, including a pension that some advisers to corporate boards said was unusually large.

The railroad gave Snow a $33.2 million lump sum in lieu of future pension payments of about $2.9 million a year, according to a report it filed with the Securities and Exchange Commission.

At that rate, Snow, 63, would have received more per year in retirement than the $2.1 million of salary and bonus he was paid last year while he was still on the job.

"That doesn't happen very often," said Brian Foley in the Washington Post. Foley advises big corporations on executive pay matters. Snow's compensation at CSX "didn't seem to me to jibe with somebody who's a reformer."

In addition to the pension, Snow received $8.1 million in cash in lieu of a $25 million life insurance policy provided under his employment contract, $8.7 million in deferred compensation and $18.9 million in stock that he had accrued but not yet received.

Adam Hollingsworth, a CSX spokesman, told the Washington Post, "John Snow's pension and related benefits are consistent with executives of other Fortune 500 companies."

In computing Snow's pension, CSX credited him with 44 years of service at the railroad company, although he worked there for about 25 years.

CSX based Snow's pension on his average pay over the past five years, which the company said was $4.4 million. According to a proxy report filed with the SEC, that average included 250,000 shares of restricted stock that Snow was granted in 1999.

(The Washington Post contributed to this report.)

Tellier got $10 million in final year with CN

Paul Tellier pocketed almost $10 million in 2002, his last year as president and chief executive officer of Canadian National Railway Co.

Tellier's $9.8-million compensation package was disclosed in CN's management proxy circular.

Tellier stepped down as CEO of Montreal-based CN at the end of 2002 to become chief of air and rail transport company Bombardier Inc.

On top of his base salary of $1.7 million at CN compared with $1.4 million in 2001 Tellier received a bonus of $629,730 and other payments. He also exercised $7.4-million worth of stock options.

Tellier's bonus last year was slashed in half from the $1.2-million he received in 2001. His total compensation in 2001 was $9.6 million.

Chief operating officer Hunter Harrison, who replaced Mr. Tellier as president and CEO of CN, collected $3.3 million last year, compared with $5.9 million in 2001. (The Globe and Mail contributed to this report.)

UP shareholders to limit 'golden parachutes;' CEO gets $16 million

Shareholders of Union Pacific Corp. voted in favor of subjecting the most generous executive severance packages to a shareholder vote.

The nonbinding resolution was approved 56 percent to 44 percent at the annual shareholders' meeting on April 17. The measure goes to the Union Pacific's board of directors, which can adopt or reject it.

The Union Pacific resolution urges the board to seek shareholder approval for any severance package that pays three or more times an executive's salary plus bonus.

UP Chairman & CEO Dick Davidson doubled his compensation to $16 million as the company met or exceeded financial goals.

Davidson was paid $1.2 million in salary and granted stock options worth $14.8 million in 2002. (The Associated Press contributed to this report.)

NS chairman Goode given 55% pay hike

The chairman, chief executive officer and president of Norfolk Southern Corp. got a 55 percent raise in salary, bonuses and other cash compensation in 2002, a year that the railroad showed significant improvement in earnings.

David R. Goode earned $4.5 million last year, up from $2.9 million in 2001, according to the proxy statement the company filed on March 17 with the U.S. Securities and Exchange Commission.

Goode's total compensation included a $1.7 million payout from the railroad's long-term incentive plan, which is based on NS's financial performance over the past three years. His long-term incentive payments almost quadrupled from 2001.

Goode's annual salary also grew two percent to $970,833 last year. His bonus award dropped almost eight percent to $883,944. The bonus is based on the company's annual performance.

Other compensation for Goode included the company's contribution to his 401(k) account and the $143,456 cost for his personal use of the company's airplane.

In addition to his cash compensation, the NS CEO received stock options with a present value of $7.7 million.

(The Virginian-Pilot contributed to this report.)

BNSF's Rose salary, compensation more than $5 million

In 2002, Chairman, President & CEO Matthew Rose raked in $5,024,285 in total compensation including stock option grants from Burlington Northern Santa Fe. He has another $124,292 in unexercised stock options from previous years.




© 2003 Brotherhood of Locomotive Engineers