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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
First Quarter
20252024
($ in millions)
Stock-based compensation expense$18 $19 
Total tax benefit5 5 

During the first quarter of 2025, 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 options80,067 $87.33 
RSUs190,134 255.32 
PSUs66,334 296.55 
Stock Options
First Quarter
20252024
($ in millions)
Options exercised42,55297,217 
Cash received upon exercise$4 $9 
Related tax benefits realized1 3 

Restricted Stock Units

RSUs granted primarily have three- and four-year ratable restriction periods 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
20252024
($ in millions)
RSUs vested152,764 156,651 
Common Stock issued net of tax withholding107,257 108,250 
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
20252024
($ in millions)
PSUs earned8,540 41,580 
Common Stock issued net of tax withholding5,633 26,056 
Related tax benefits realized$— $—