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Norfolk Southern Corp NSC

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Norfolk Southern Announces 2022 CEO Transition; We Don't Anticipate Any Disruption From the Shift

Matthew Young, CFA Equity Analyst

Analyst Note

| Matthew Young, CFA |

James Squires (age 59) intends to retire on May 1, 2022, following six-plus years at the helm and almost 30 years at Norfolk Southern. Chief Marketing Officer Alan Shaw will step in to take the reigns as CEO. We don’t believe the decision stems from any disagreement or adverse circumstances but suspect it was part of a broader transition plan that’s been mulled over by the board for some time. In fact, under Squires’ watch (and with help from precision railroading veteran Claude Mongeau, who joined the board in 2019), the firm has performed well this past year in terms of incrementally closing the operating ratio gap with peers (despite rising labor inflation and rail-network congestion). Profitability gains stem in part from the ongoing implementation of PSR principles--a process that began in mid-2019. 

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Company Profile

Business Description

Class-I railroad Norfolk Southern operates in the Eastern United States. On roughly 21,000 miles of track, the firm hauls shipments of coal (15% of 2019 revenue), intermodal traffic (25%), and a diverse mix of automobile, agriculture, metal, chemical, and forest products.

Contact
Three Commercial Place
Norfolk, VA, 23510-2191
T +1 757 629-2680
Sector Industrials
Industry Railroads
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 20,156

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