What is the total compensation package for the new CFO, Fredrik J. Eliasson?

For 2012, Mr. Eliasson's compensation includes a $500,000 base salary, a short-term incentive opportunity of 90% of his base salary ($450,000), and pro-rated long-term equity incentive awards with a targeted value of $1.125 million for each of the 2010-2012 and 2011-2013 performance cycles. The long-term awards are payable in company stock, subject to meeting performance conditions.

What is the significance of the restricted stock granted to Oscar Munoz?

The grant of 22,967 shares of restricted stock to Mr. Munoz, vesting over five years (February 7, 2017), is a retention incentive. It aligns Mr. Munoz's interests with the long-term performance and stock price appreciation of CSX, encouraging him to remain with the company and contribute to its sustained success.

Are these compensation details standard for CSX executives?

Yes, the filing states that both Mr. Eliasson and Mr. Munoz will be eligible to participate in the same executive compensation programs as the Company's named executive officers. This suggests that the general structure of their compensation, including base salary, incentives, and equity awards, is consistent with the company's established practices for its senior leadership team.

What does 'prorated basis' mean for Mr. Eliasson's long-term incentive awards?

'Prorated basis' means that Mr. Eliasson will receive a portion of the targeted long-term incentive award based on the amount of time he served as Executive Vice President and Chief Financial Officer during each performance cycle (2010-2012 and 2011-2013). Since his appointment to this role was effective January 23, 2012, his awards will be adjusted downwards from the full targeted amount to reflect this partial service.

CSX 8-K: Leadership Changes

Summary

This 8-K filing from CSX Corp. (CSX) is an amendment that provides further details on the compensation packages for two newly appointed executive officers: Fredrik J. Eliasson, Executive Vice President and Chief Financial Officer, and Oscar Munoz, Executive Vice President and Chief Operating Officer. Both appointments were effective January 23, 2012. The filing clarifies the specific base salary, short-term incentive opportunities, and long-term equity awards for Mr. Eliasson, as well as restricted stock grants for Mr. Munoz. For investors, this information is crucial for understanding the remuneration structure and alignment of executive incentives with company performance. The long-term equity awards for Mr. Eliasson, tied to performance units and payable in stock, suggest a focus on shareholder value creation. Similarly, the restricted stock granted to Mr. Munoz, vesting over a five-year period, indicates a commitment to retaining key leadership talent and incentivizing long-term company success. Investors can look to these compensation arrangements as indicators of the company's strategy and confidence in its executive team.

Key Highlights

1Fredrik J. Eliasson appointed Executive Vice President and CFO, and Oscar Munoz appointed Executive Vice President and COO, effective January 23, 2012.
2Mr. Eliasson's 2012 compensation includes an annual base salary of $500,000.
3Mr. Eliasson has a short-term incentive opportunity of 90% of his annual base salary.
4Mr. Eliasson is eligible for pro-rated long-term equity incentive awards with a targeted value of $1.125 million per performance cycle (2010-2012 and 2011-2013).
5These long-term awards for Mr. Eliasson will be paid in company common stock, subject to performance conditions.
6Mr. Munoz received a grant of 22,967 shares of restricted stock vesting on February 7, 2017.
7Both executives will participate in the company's standard executive compensation programs.

CSX CORP 8-K/A Report, Executive Changes (Feb 10, 2012)

Summary

Key Highlights

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