CSX paid ex-CEO Snow $60 million upon leaving

Treasury chief's payout included stock, pension

March 25, 2003|By BLOOMBERG NEWS

WASHINGTON - CSX Corp., the third-largest U.S. railroad owner, paid John W. Snow $60.8 million in deferred pay, stock and pension when he resigned as chief executive in January to become Treasury secretary.

Snow received $8.7 million in deferred cash compensation over 17 years, $18.9 million in stock that had been accrued over 10 years and $33.2 million in a lump sum pension payment, the company said in a statement filed yesterday with the Securities and Exchange Commission.

The Senate confirmed Snow's nomination in January to replace Paul H. O'Neill as Treasury secretary.

Snow had been chief executive of CSX since 1991. Snow changed CSX from a conglomerate that owned barges, railroads, ocean shipping units and resorts to a company with almost 90 percent of sales from rails.

CSX had previously set aside funds to pay for all but $15 million of what was owed Snow, company spokesman Dan Murphy said. The $15 million, equal to 5 cents a share, will be included in first-quarter earnings, he said. CSX said in January that its cost for the quarter would rise about $50 million because of obligations to Snow and higher fuel expenses.

Snow was paid $9.74 million last year, including a $1.25 million salary, an $810,000 bonus, $340,958 in other compensation such as life insurance, $7.28 million in a long-term incentive plan and $63,557 from another incentive plan, according to the SEC filing. He also gained $1.25 million by exercising stock options.

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