Stock-Based Compensation

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

	Second Quarter				First Six Months
	2020		2019		2020		2019
	($ in millions)
Stock-based compensation expense	$	10	$	20	$	12	$	36
Total tax benefit	3		8		29		31

During 2020, a committee of nonemployee members of our Board of Directors (and the Chief Executive Officer when delegated authority by such committee) granted stock options, restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:

	Second Quarter			First Six Months
	Granted	Weighted-Average Grant-Date Fair Value		Granted	Weighted-Average Grant-Date Fair Value
Stock options	1,050	$	39.10	43,770	$	52.05
RSUs	3,380	173.56		167,540	210.02
PSUs	1,930	184.47		78,720	212.67

Stock Options

	Second Quarter				First Six Months
	2020		2019		2020		2019
	($ in millions)
Stock options exercised	162,400		215,546		685,638		621,917
Cash received upon exercise	$	12	$	16	$	55	$	44
Related tax benefit realized	3		6		16		15

Restricted Stock Units

RSUs granted primarily have a four-year ratable restriction period 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. 

	Second Quarter				First Six Months
	2020		2019		2020		2019
	($ in millions)
RSUs vested	—		506		202,299		166,055
Common Stock issued net of tax withholding	—		363		143,712		119,244
Related tax benefit realized	$	—	$	—	$	4	$	2

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. No PSUs were earned or paid out during the second quarters of 2020 or 2019.

	First Six Months
	2020		2019
	($ in millions)
PSUs earned	235,935		331,099
Common Stock issued net of tax withholding	156,450		221,241
Related tax benefit realized	$	7	$	9