Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]


	First Quarter
	2021		2020
	($ in millions)

Stock-based compensation expense	$	16	$	2
Total tax benefit	17		26

During the first quarter of 2021, we granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:


	First Quarter
	Granted	Weighted-Average Grant-Date Fair Value

Stock options	42,770	$	62.49
RSUs	174,115	238.03
PSUs	49,940	240.61

Stock Options


	First Quarter
	2021		2020
	($ in millions)

Options exercised	212,546		523,238
Cash received upon exercise	$	19	$	43
Related tax benefit realized	7		13

Restricted Stock Units

RSUs granted primarily have a four-year ratable restriction period and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock.


	First Quarter
	2021		2020
	($ in millions)

RSUs vested	257,397		202,299
Common Stock issued net of tax withholding	182,289		143,712
Related tax benefit realized	$	7	$	5

Performance Share Units

PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model.


	First Quarter
	2021		2020
	($ in millions)

PSUs earned	78,727		235,935
Common Stock issued net of tax withholding	49,967		156,450
Related tax benefit realized	$	1	$	7