Addressing his final annual meeting as Norfolk Southern’s CEO, Wick Moorman told shareholders that “we see continuing strength in the overall economy as well as opportunities in many of the markets we serve. We are confident in our company’s long-term strengths and prospects for continued success.”
NS President Jim Squires becomes CEO June 1, and Moorman will remain as executive chairman of the board. Moorman reviewed company highlights of 2014, which included earning record income, revenues, and earnings per share while establishing its best-ever operating ratio. “These accomplishments were especially significant,” Moorman said, “considering 2014’s extreme winter weather and traffic surges that exceeded expectations, which created service challenges.”
Moorman’s overall message to customers and stockholders was “upbeat,” NS said. “We expect to reach the strong velocity and service levels we saw in 2012 and 2013 by the second half of this year,” Moorman noted. “As we restore our network’s velocity and efficiency, we will be able to secure additional business at rates that will drive positive returns for our shareholders.”
NS stockholders re-elected 13 directors for terms expiring in 2016: Thomas D. Bell Jr., chairman of Mesa Capital Partners; Erskine B. Bowles, senior advisor and vice chairman of BDT Capital Partners LLC; Robert A. Bradway, chairman and CEO of Amgen Inc.; Wesley G. Bush, chairman, president, and CEO of Northrop Grumman Corp.; Daniel A. Carp, chairman of Delta Air Lines Inc.; Karen N. Horn, a partner with Brock Capital Group; Steven F. Leer, senior adviser to Arch Coal Inc.; Michael D. Lockhart, retired chairman, president, and CEO of Armstrong World Industries Inc.; Amy E. Miles, CEO of Regal Entertainment Group; Moorman; Martin H. Nesbitt, co-founder of The Vistria Group; Squires; and John R. Thompson, government relations consultant for Best Buy Co. Inc. Stockholders ratified appointment of KPMG LLP as auditors and approved an advisory resolution on the compensation of executive officers, an executive management incentive plan and a long-term incentive plan. Moorman's remarks and a new video are posted in the Investor Relations section of the Norfolk Southern website.