CSX Pays Bonuses Despite Profit Loss
JACKSONVILLE, Fla. — CSX Corp. paid bonuses to 4,400 managers and office workers at its rail unit in two weeks after the owner of the No. 3 U.S. railroad reported a 61% decline in first-quarter profit.
Chairman John Snow called those results “disappointing” and “probably a low point for us.” As of mid-May, CSX shares had declined 56% during the previous 12 months.
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The bonuses averaged $1,200, or about 2% of the workers’ $60,000 average salary. The quarterly bonus was part of a program promoted by former President Ronald Conway, who was replaced along with two other senior executives in April.
The Richmond, Va.-based holding company said profits fell because of higher fuel costs and continued delays on the former Conrail properties it began operating June 1, 1999.
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