Norfolk Southern sends East Palestine $3.8M in aid which is LESS than what CEO Alan earned in 2021
EAST PALESTINE, OHIO: Norfolk Southern, the train company that was behind the toxic train derailment in East Palestine, has reportedly given less to residents than the CEO's annual pay. While the company's President and CEO Alan Shaw earned a total of $4.36 million in 2021, Norfolk Southern has given $3.8 million in aid "directly to the citizens who are impacted by the incident," according to executives.
The figures came to light during a presentation to investors on Wednesday, February 22. Chief financial officer Mark George revealed that their insurance policy gave them coverage of up to $1.1 billion, according to the Daily Mail. At the Barclays Industrial Select Conference in Miami, he told investors that the company "provided more than $6 million of direct aid to the community, $3.8 million of it so far directly to the citizens who are impacted by the incident."
RELATED ARTICLES
The Ohio train derailment
East Palestine residents are in fear for their health after a train carrying toxic chemicals crashed. As many as 50 Norfolk Southern Railroad freight train cars derailed in Columbiana County on February 3, at around 9 pm. A major fire started near the track. The railroad company resorted to a controlled release of cancer-causing chemicals on February 6 in order to prevent a possible explosion.
Prior to the gases being released, hundreds of East Palestine residents were evacuated and moved from their homes. However, they have now been told it is safe to return. The toxic gases released after the train derailment include vinyl chloride, isobutylene, ethylhexyl acrylate, and ethylene glycol monobutyl ether.
Following the incident, environment activist Erin Brockovich has urged East Palentine residents, who live near the site where a deadly train derailment took place, to prioritize their own safety. She has urged the residents to be skeptical of EPA assurances that the site is no longer unsafe.
What is Alan Shaw's net worth?
The estimated net worth of Shaw is at least $10.7 million as of January 27, 2023, according to Wallmine. Shaw owns more than 3,141 units of Norfolk Southern stock worth over $7,854,094. He sold NSC stock worth over $2,015,680 over the last seven years. He reportedly makes $873,416 as president at Norfolk Southern.
According to the website, Shaw "made over 26 trades of the Norfolk Southern stock since 2016, according to the Form 4 filled with the SEC. Most recently he exercised 3,141 units of NSC stock worth $704,668 on 27 January 2023."
It adds, "The largest trade he's ever made was exercising 9,930 units of Norfolk Southern stock on 29 July 2021 worth over $864,208. On average, Mr trades about 1,194 units every 75 days since 2016. As of 27 January 2023 he still owns at least 35,009 units of Norfolk Southern stock."
'There's a lot of misinformation that's out there'
It was Shaw who was slated to give the presentation, but George took over after the CEO apparently said he was overseeing the cleanup in Palestine. Geroge said the train company has been a victim of "disinformation".
"There's a lot of misinformation that's out there, a lot of speculation. I'd strongly encourage that all of you get your information from the NTSB [the National Transportation Safety Board], and the EPA [Environmental Protection Agency]," he said. He went to on tell investors that the disaster would not financially impact the company.
"We maintain insurance coverage intended for losses from incidents, such as this one," he said in the presentation. He decribed "third party liability of $75 million of self insurance, and also $75 million of self-insurance related to first party property losses," saying, "They're two separate policies."
"Our liability policy attaches to coverage losses above 75 and up to $800 million, or up to $1.1 billion for specified types," George said. "It is intended to protect against legal liabilities for bodily injury and property damage to third parties." He forther said that insurers can still contest claims. The company, he added, would not have any coverage that could protect them from penalties over the train disaster.
"We have since removed more than 15,000 tons of soil and debris, and also removed over 1.1 million gallons impacted water," George said. "Additionally, we've taken actions installing pumps to redirect the sulfur run stream around the derailment site. We're working with environmental experts to collect samples around the groundwater there and on the stream bank."
He added, "We completed nearly 500 in-home air tests in conjunction with the EPA and other government agencies. The monitoring has indicated that the air quality remains safe. Despite this we've provided air purifiers for residents for use in their homes. But also we purchased air purifiers for the city for use in their buildings. We continue to cooperate with the NTSB on its ongoing investigation of the cause of the derailment. And the NTSB, again as the only source of reliable information on this."