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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Third QuarterFirst Nine Months
2023202220232022
($ in millions)
Stock-based compensation expense$10 $13 $32 $49 
Total tax benefit2 7 11 24 

During 2023, we granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:

Third QuarterFirst Nine Months
GrantedWeighted-Average Grant-Date Fair ValueGrantedWeighted-Average Grant-Date Fair Value
Stock options— $— 69,580 $77.60 
RSUs6,448 230.82 199,819 233.61 
PSUs110 234.37 59,070 236.25 
Stock Options
Third QuarterFirst Nine Months
2023202220232022
($ in millions)
Options exercised9,934116,881 87,206 275,770 
Cash received upon exercise$1 $9 $7 $23 
Related tax benefits realized— 5 3 11 

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. 
Third QuarterFirst Nine Months
2023202220232022
($ in millions)
RSUs vested2,587 557 155,617 247,510 
Common Stock issued net of tax withholding1,734 397 109,153 175,373 
Related tax benefits realized$— $— $1 $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. No PSUs were earned or paid out during the third quarters of 2023 and 2022.

First Nine Months
20232022
($ in millions)
PSUs earned58,599 86,420 
Common Stock issued net of tax withholding40,255 54,651 
Related tax benefits realized$— $1