Domain: Finance
Question:
The CEO of CSX is preparing commentary for the upcoming 3Q’2025 earnings call around its recently released 2025 proxy statement and wants to summarize the several highlights surrounding involvement of the board of directors, executive compensation, and shareholder engagement. Please provide the following:

1) A table showing the percent of shares outstanding that were contacted both before and after the annual meeting for both 2024 and 2023 (rounded to the nearest tenth). Also include the year-over-year changes in basis points.   

2) As of 2024, what percentage of CSX’s board of directors has experience in the transportation industry? What percentage of CSX’s board of directors is currently serving on two or more boards of directors? Provide the names of any members on multiple boards of directors. Round all percentages to the nearest tenth.

3) Create a table, displaying values in millions of dollars rounded to the nearest hundred thousandth, for Joe Hinrichs, Sean Pelkey, and Kevin Boone, showing the total value of just estimated future payouts for 2024 equity incentive awards, assuming the maximum amount of units were awarded and all units were exercised at the stated price of the option award. 

4) A table showing the name of all current CSX executives and the dollar amount of compensation that was clawed back as part of CSX’s recovery of erroneously awarded compensation.
 
5) Calculate economic profit in millions for FY2024. Provide the percentage weighting that Economic Profit makes up of the 2022-2024 LTIP for CSX.

Expected points in a correct answer:
States the percentage of shares outstanding contacted Before Annual Meeting in 2024 was 41.0%.
States the percentage of shares outstanding contacted Before Annual Meeting in 2023 was 40.2%.
Calculates the YoY Change in Bps for shares contacted Before Annual Meeting was 80bps (allow +/- 5bps).
States the percentage of shares outstanding contacted After Annual Meeting in 2024 was 44.0%.
States the percentage of shares outstanding contacted After Annual Meeting in 2023 was 36.3%.
Calculates the YoY Change in Bps for shares contacted After Annual Meeting was 770bps (allow +/- 10bps).
States that, as of 2024, 8 out of 12 members of the board of directors have experience in the transportation industry.
Calculates the percentage of directors with experience in the transportation industry as of 2024 is 66.7% (allow +/- 0.1 percentage points).
States that, as of 2024, 4 out of 12 board of director members are serving on two or more boards.
Identifies Hilal as a board member serving on two or more boards as of 2024.
Identifies Chow as a board member serving on two or more boards as of 2024.
Identifies Vautrinot as a board member serving on two or more boards as of 2024.
Identifies Zillmer as a board member serving on two or more boards as of 2024.
Calculates the percentage of directors serving on two or more boards as of 2024 is 33.3% (allow +/- 0.1 percentage points).
States the clawback amount for Joseph R. Hinrichs (President & CEO) was $147,000 in 2024.
States the clawback amount for Sean R. Pelkey (EVP & CFO) was $46,200 in 2024.
States the clawback amount for Kevin S. Boone (EVP & Chief Commercial Officer) was $50,750 in 2024.
States the clawback amount for Michael A. Cory (EVP & Chief Operating Officer) was $13,493 in 2024.
States the clawback amount for Stephen Fortune (EVP & Chief Digital & Technology Officer) was $45,500 in 2024.
States the formula for Economic Profit is Gross Cash Earnings (GCE) - Capital Charge.
States Gross Cash Earnings (GCE) for 2024 was $6,059M.
States the Capital Charge for 2024 was $3,718M.
Calculates Economic Profit for 2024 is $2,341M (allow +/- $1M).
States that for 2024, Economic Profit held a 50% weighting towards the 2022-2024 LTIP.
Creates table showing executive clawback amounts
Creates table showing shareholder engagement data
States that Joe Hinrichs had 465,688 units for the estimated future payouts under equity incentive awards 
States that Sean Pelkey had 94,978 units for the estimated future payouts under equity incentive awards 
States that Kevin Boone had 128,678 units for the estimated future payouts under equity incentive awards 
States that the exercise price of option awards was $36.72 per share
Calculates the total value for Joe R. Hinrichs as $17.1M (allow +/- $0.05M).
Calculates the total value for Sean R. Pelkey as $3.5M (allow +/- $0.05M).
Calculates the total value for Kevin S. Boone as $4.7M (allow +/- $0.05M).
Creates table showing total value of estimated future payouts under equity incentive awards
Identifies Joseph R. Hinrichs as a CSV executive, as of 2024.
Identifies Sean R. Pelkey as a CSV executive, as of 2024.
Identifies Kevin S. Boone as a CSV executive, as of 2024.
Identifies Michael A. Cory as a CSV executive, as of 2024.
Identifies Stephen Fortune as a CSV executive, as of 2024.