XML 25 R10.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
First Quarter
20242023
($ in millions)
Stock-based compensation expense$19 $11 
Total tax benefit5 6 

During the first quarter of 2024, 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
GrantedWeighted-Average Grant-Date Fair Value
Stock options64,340 $79.65 
RSUs196,568 233.77 
PSUs52,600 260.07 
Stock Options
First Quarter
20242023
($ in millions)
Options exercised97,21766,811 
Cash received upon exercise$9 $5 
Related tax benefits realized3 3 

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
20242023
($ in millions)
RSUs vested156,651 149,122 
Common Stock issued net of tax withholding108,250 104,608 
Related tax benefits realized$— $1 

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
20242023
($ in millions)
PSUs earned41,580 58,599 
Common Stock issued net of tax withholding26,056 40,255 
Related tax benefits realized$— $—