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  "documentTitle": "Norfolk Southern Corporation (NSC)",
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      "text": "The bottom line is the cost of NSC's new COO appears higher than the headline would suggest.",
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      "text": "Norfolk also provided some details on the Meridian Speedway agreement with CPKC that caused a significant amount of confusion and frustration over the last several weeks.",
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      "text": "In exchange for releasing John Orr from his non-compete agreement with CP, Norfolk agreed to a one-time payment to CP of $25 million...",
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      "text": "The bottom line is the cost of NSC's new COO appears higher than the headline would suggest. In addition to the $25 million one-time payment, it could also include capex...",
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      "kind": "quote",
      "text": "CP and Keith Creel look great on this trade... they're absorbing [Orr's] prior role into existing management... while more importantly winning both a ~$25M payout...",
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      "text": "Net net, we're underwhelmed by what we observed yesterday with respect to NSC's announcement. While John Orr is considered a good operator, it appears the cost to extract him from CP is notable...",
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      "text": "\"In exchange for releasing John Orr from his non-compete agreement with CP, Norfolk agreed to a one-time payment to CP of $25 million and also agreed to make \"certain commercial and operational considerations related to the Meridian Speedway and the Meridian Terminal\". These payments and concessions deserve scrutiny, in our view, given the potential competitive implications.\" — Deutsche Bank. \"CP and Keith Creel look great on this trade... they're absorbing [Orr's] prior role into existing management (i.e., no cost to replace), while more importantly winning both a ~$25M payout from NS and commercial concessions related to NS's Meridian Speedway... While we don't know the specifics or value of the Meridian Speedway concessions, clearly they could be meaningful on this longer term Mexico-to-Southeast growth investment for CP and CSX connected by GWR.\" — Susquehanna. \"Net net, we're underwhelmed by what we observed yesterday with respect to NSC's announcement. While John Orr is considered a good operator, it appears the cost to extract him from CP is notable and could have longer-lasting competitive implications, which is unfortunate in the context of the clear alternative. So in this sense, yesterday's announcement raises more questions than answers.\" — Deutsche Bank. \"The bottom line is the cost of NSC's new COO appears higher than the headline would suggest. In addition to the $25 million one-time payment, it could also include capex to elongate sidings and concessions that lead to less volume for NSC and more volume for CP and CSX. More details and transparency is needed, in our view, given the company could have hired Jamie Boychuk with no concessions, who we consider to be best suited to be the COO of NSC given his long and successful track record.\" — Deutsche Bank. \"Norfolk also provided some details on the Meridian Speedway agreement with CPKC that caused a significant amount of confusion and frustration over the last several weeks. We believe the management team already missed a few opportunities to clarify this issue ... Ultimately, Norfolk did not quantify the full cost so management will still have to address this issue on the 1Q24 earnings call, especially if the operating momentum does not continue to accelerate\" — J.P. Morgan.",
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      "text": "Deutsche Bank note (March 21, 2024). Susquehanna note (Mar. 20, 2024). J.P. Morgan note (Apr. 11, 2024).",
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      "text": "Wall Street Agrees That the Board and Mr. Shaw's Knee-Jerk Hire Comes at a High Cost to Shareholders",
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