Norfolk Southern Exec. Got 37% Pay Raise After Toxic, East Palestine Ohio Crash
- "We need full compensation for the families and workers affected by the East Palestine train derailment—not a $3.6 million raise for its CEO," wrote Sen. Ed Markey. Common Dreams, Feb. 27, 2024. - Ed.
Norfolk Southern CEO Alan Shaw got a large raise last year after the train derailment in East Palestine, Ohio that devastated that community. Shaw's total compensation rose by 37% in 2023, which put it at over $13 million for the year. The train derailment occurred in Feb. of last year and exposed the community to toxic chemicals that caused a large fire. Though there were no human fatalities, the wreck sparked grave public health concerns and the company has faced major criticisms for what have been described as lax safety practices.
Jonathon Long, general chairman, American Rail System Federation (ARSF) of the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters (BMWED), wrote about the problems with the rail company in a letter last year. "I am writing to share with you the level of disregard that Norfolk Southern has for the safety of the railroad's workers, its track structure, and East Palestine and other American communities where NS operates."
"They gamble with your money, and you hold all the risk if they lose by putting a toxic train in the ditch in your community."
Sen. Ed Markey (D-Mass.) criticized Shaw's compensation raise in a tweet on Monday. Shaw's compensation increase last year came despite the fact the company's net income decreased by 44% in 2023. The co. also increased its spending on lobbying by 30% last year. A group of shareholders from the firm Ancora Holdings is trying to replace Shaw and other members of the company's management with new leadership, because it doesn't feel Shaw is leading the company in the right direction.
"It's alarming that the board rewarded Mr. Shaw with a massive raise and total compensation of $13.4 Mill during the same year he presided over industry-worst operating results, sustained underperformance, and a tone-deaf response to the derailment in East Palestine," the group told CNN. "This failure of corporate governance … reinforces the need for sweeping changes to NS' well-paid board." The Dept. of Justice sued NS for violating the Clean Air Act last year, and the Supreme Ct. ruled in June, 2023 that a former NS employee who alleged he developed colon cancer after being exposed to hazardous chemicals could proceed with a lawsuit...
https://www.commondreams.org/news/norfolk-southern-ceo-pay-raise
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