BIG Bonus for E. Hunter Harrison

Trains Magazine General Discussion
1

CN chief gets $3.85 million bonus
Canadian National Railway Co. reported on Tuesday (March 21) that Chief Executive E. Hunter Harrison received a $3.85 million bonus for 2005, up from his 2004 bonus of $3.5 million, according to this Dow Jones Newswires report.
According to a filing with the Securities and Exchange Commission, Harrison also received a $17.3 million long-term incentive payout for 2005, compared with a $1.59 million long-term incentive payout for 2004.

The 2005 award payout was based on performance-based restricted units awarded in 2004 that were accelerated when specified performance targets were met. The 2005 long-term incentive payout was increased to the maximum allowable amount of 120% of the grant.

Harrison got a $1.38 million salary for 2005, compared with a $1.25 million salary in 2004, the filing said.

Shares of the transcontinental railroad company closed at $46.33, up 4 cents from Monday’s closing price.

(The preceding Dow Jones Newswires report was filed on Tuesday, March 21, 2006.)

2

Got a little class envy working here, eh, Limitedclear?

Old Timer

3

Yeah, I guess, but it gives me something to aspire to. After all, then I can REALLY upset my good buddy Clique of One north of the border…

Come to think of it, he’s probably reading this now and frying a few circuits…lol…

LC

4

"Yeah, I guess, but it gives me something to aspire to. After all, then I can REALLY upset my good buddy Clique of One north of the border…

Come to think of it, he’s probably reading this now and frying a few circuits…lol…

LC"

I bet you’re giggling like a little girl, LC. I’ve got over 35 1/2 years in the Signal Department, earning my pay the honest way. Whenever you and your buddy, Harrison are able to state that, maybe then your rear ends will quit sucking air.

Canadian member of the Signal Department of the Canadian National Railways.

5

Chump change!

6

clique:

Where the heck you been? Missed you.

Ah, it is the season of annual reports. I received one the other day (Fifth Third Bank) in which the CEO didnt receive a bonus. The board was rather straight forward in their assessment, which was refreshing…“the performance levels were not met. A cash bonus was not paid.”

The whole corporate compensation situation was put into play about 10 years ago when the US passed a law limiting compensation of exectutives to $1million. So, all sorts of performance bonuses and stock options were put into place, since those could be tagged to results.

This in turn led to all sorts of corporate accounting fraud since the quickest way to get rich was via stock options and restricted stock.

Executive compensation is out of control. Unfortunately all board members are part of a pretty elite group of folks and they keep giving raises and then compare the compensation levels to “peer compensation.”

This comes from someone having no jealousy over what these people make, I just think it is lousy business.

ed

7

I wish someone would carefully outline what you have to do to make $3.85 million bonus plus your million+ salary?

Call me simple, but I can’t imagine that any individual human is worth that kind of money! Maybe if the job required you meet certain standards (very stiff standards) or you would be executed…then maybe I could see it.

All workers can make or break a company - and I know they don’t make that kind of $. Plus I bet they have very good ideas that should be implemented or at least considered and a lot of them only make minimum wage.

A good day’s wage for a good day’s work - I just can’t imagine what these anointed ones do in a day that makes it worth that much $…

M.

8

FOFLMAO…

Wow 351/2 years and still trying to figure out which wire goes where…miracles may never cease…

Glad to see my CN stock will make me wealthy before I have to work that long. The bonus is a small price to pay for success. Even the NS stock I have had since converting from Conrail has more than doubled. Sheesh, I may have to retire with only 30, what a shame…

LC

9

I think the bonus is paid on a per-derailment ratio.

The more derailments they have means the more they are saving on maintenance items, thus saving the company money.

There is even an extra bonus applied when haz-mat is spilled: all the free publicity for the railroad means no advertising dolloars are spent.

10

I wanna know what Goodes kiss on the way out amounted to…

LC

<<<<<

March 23, 2006

Annual Report Hails Company’s Best Year On Its 175th Anniversary

NORFOLK, VA – With a nod to its 175-year history, Norfolk Southern
Corporation (NYSE: NSC) salutes its most successful year ever in its
2005 Annual Report. “This was an exceptional year,” writes David Goode
in his last letter to stockholders as chairman of the company he led
for 13 years before retiring in 2006. Noting records for net income,
earnings per share, revenues and carloads, Goode says, “The Norfolk
Southern story is one of great people in a great organization getting
the job done for the nation as a key and growing part of the essential
transportation system that makes the economy strong.”

Goode’s successor, Wick Moorman, tells shareholders in a companion
letter that “while our company always will be tied to the economy, it
seems evident that the favorable economics of rail transportation will
continue to gain traction in the marketplace. Our company will be ready
to capitalize on our advantages.”

Norfolk Southern’s annual report and Form 10-K are posted on the
company Web site. Created in-house, some 195,000 printed copies are
distributed to stockholders, the financial community, news media and
libraries. The report comes packaged with a DVD documenting Norfolk
Southern’s swift and heroic restoration of rail service to New Orleans
after Hurricane Katrina. To request a copy, call 800-531-6757, e-mail
annualreport@nscorp.com or write to Norfolk Southern Corp., Corporate
Communications Department, Three Commercial Place, Norfolk, Va. 23510-
9217.

Norfolk Southern Corporation is one of the nation’s premier
transportation companies. Its Norfolk Southern Railway subsidiary
operates approximate

11

Why rehab 1,000 miles when you can repair 100. OK, so what’s a few injured employees, derailed equipment and destroyed lading???

What a world…lol…

All about the next quarter…

LC

12

These dudes get bonuses but want to cut out productive jobs. Perhaps Congress should look into rr excs. Davidson, Harrison and the Enron bunch , this is greed at its worst. Fact of the matter is one day each one of these dudes will have to face and answer questions at St.Peter’s gate as why they acted the way they did. Hope they all rot in you know where.

13

3.85$ million Canadian: thats about 48.29$ American, right?

14

I guess my question is, on the basis of some of the reports listed: Do railroads haul CHAPSTICK? If they do, its use has to be high. It looks like the stock to buy…
PS. Sammy you left SNOW off the list (CSX) .
Sam

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Norfolk Southern executives are riding high in compensation
(The following article by Gregory Richards was posted on the Virginian Pilot website on March 24.)

NORFOLK, Va. – David R. Goode, the recently retired chairman of Norfolk Southern Corp., took home $14.5 million in compensation during 2005, an increase of 26 percent from the previous year, according to the company’s proxy statement filed Thursday with the Securities and Exchange Commission.

Wick Moorman, Goode’s successor as chairman, chief executive officer and president of the Norfolk-based railroad, also received a substantial increase in pay during a year in which the company posted record earnings. Moorman received $6.02 million in 2005 compensation, up from $1.58 million in 2004, the filing said.

Moorman, who began 2005 as the railroad’s president, assumed the CEO title in November and the chairman title last month.

For Goode and Moorman, the increases came largely from stock-related compensation.
Most of Goode’s increase came from $5.77 million in payments from the railroad’s long-term incentive plan, which reflects financial performance from the past three years. Those payments more than doubled from 2004.

Goode’s annual salary of $1 million and his bonus of $2 million were unchanged from 2004.

He also collected restricted stock awards last year worth $3.75 million, topping the $3.57 million in awards he received in 2004.

Additionally, he was awarded 110,000 stock options with an estimated value of $1.36 million. As of January 2006, Goode owned or controlled nearly 3.2 million shares of the railroad’s stock worth $168.3 million at Thursday’s closing price of $52.89.

Other benefits – including payments made to his 401(k), life insurance and the use of corporate aircraft – totalled $623,778, down from $739,026 the prior year.

Goode’s payout came during what Norfolk Southern refers to as its most successful year ever,

16

We here on Earth put the dollar sign in front of the scalar. [:(!]

“Doghouse”? More like the product from the other end.

17

3.85 million dollars as a bonus to a CEO…
Not that big an amount, the oil companies down here pay that and then some as yearly salaries to some of their exceutives.

Besides, if the guy earned it…
Did he do what the board of directors tasked him to do?
Did he accompli***he goals they set, and achive the results they wanted?

.

If so, then he was justly compensated through the terms of his contract, so whats the big deal?

The stock pay out was a excellent incentive to get the job done…he did so, and was rewarded

After all, 3.85 million out of how much they earned this year?

A fraction of the company profits, I am sure.

Ed

18

Why not ask the execs at GM?

Call me simple, too. It’s not only corporate execs that burn my britches, but steroid-abusers that hit 70+ homeruns and then collect the accolades…not to mention the millions made by others for making the pass, hitting the ball, or sinking the basket.

This one’s a question for the people of GM who are in there day in and day out. Not the suits, but the workaday folks who now have to decide whether to take the lame buy-out offer that puts their retirement in jeopardy.

Me, either. I think it may have been summed up on another thread in which Ozzy Osbourne was quoted, “I’m going off the rails on the crazy train”…perhaps it should have been “gravy train”.

Egads, I’m getting old and cynical. And I’m starting to sound like Grandpa Simpson, which scares me more.

Thanks, Mookie. Your Mew has been wise.

Michael

19

Well I wonder if I will get such a bonus. As I am the president of the Welland Campus student council, I am on the board of directors and help manage a $600,000 budget. I want to grow the revenues so our budget exceeds $1 million.

Any ideas Hunter? LOL

20

Just to add fuel to the fire:

It’s payday for E. Hunter Harrison and the head of Canadian National Railways is certainly going to like the look of all those zeroes on the pay stub. Figures published in the Miami Herald paint a picture of what should make for a pretty happy scenario when payday comes around the Harrison household.

CN’s board of directors released figures announcing that Harrison’s salary increased in 2005 by over 50%. It’s compensation for a job apparently well done.

Harrison who as President and Chief Executive Officer, has overseen a CN business strategy which has resulted in the highest profit margins among North American railroads, watching the share value of the railroad jump 27% in the last year. In the four years that Harrison has been in charge of the