The train company behind the accident in East Palestine, Ohio, has so far paid out less to residents than the CEO’s annual salary.
Executives say Norfolk Southern has awarded $3.8 million in aid “directly to the citizens affected by the incident,” while Chairman and CEO Alan Shaw earned a total of $4.36 million in 2021.
The figures were given in a company presentation to investors on Wednesday, in which Chief Financial Officer Mark George claimed Norfolk Southern had been the victim of ‘misinformation’, while also revealing that their insurance policy provided them with a coverage of up to 1.1 billion dollars.
George told investors at Barclays’ Select Industrial Conference in Miami on Wednesday that the company has “provided more than $6 million of direct relief to the community, $3.8 million so far directly to citizens affected by the incident.”
His rail freight company was operating a train that derailed in the small Midwestern town on February 3, spilling toxic chemicals into the surrounding air and water.
Norfolk Southern CEO Alan Shaw was awarded $4.36 million in 2021, more than the $3.8 million the company said it had given to residents of East Palestine since the Jan. 3 crash.
At a company presentation to investors in Miami on Wednesday, the company told investors that its insurance policy provided coverage of up to $1.1 billion.
Chairman and CEO Alan Shaw, who earned a total of $4,362,801 in 2021 according to company documents, was scheduled to give the presentation, but George took the reins, saying the boss was still overseeing the cleanup in Palestine.
Shaw has likely earned significantly more in the past year, since taking over the company after former Chairman and CEO James Squires retired in May 2022. Squires earned $13.3 million in 2021.
George claimed that the company has been the victim of “misinformation”, although he did not specify what it was in the call.
Norfolk Southern’s chief financial officer, Mark George, claimed the company has been the victim of “misinformation” but was not more specific.
There is a lot of misinformation, a lot of speculation. I highly recommend that everyone get their information from the NTSB (the National Transportation Safety Board) and the EPA (Environmental Protection Agency)’, he said.
The chief financial officer tried to reassure investors in Wednesday’s call that Norfolk Southern would not be financially affected by the disaster, disclosing details of its huge insurance policies.
“We maintain targeted insurance coverage for losses from incidents like this,” he said in a presentation at the Miami conference that was also broadcast online. He described “third-party liability of $75 million of self-insurance, and also $75 million of self-insurance related to first-party property losses,” adding: “They’re two separate policies.”
“Our liability policy applies to coverage losses greater than 75 and up to $800 million, or up to $1.1 billion for specific types,” George said. ‘It is intended to protect against legal liability for bodily injury and property damage to third parties.’
He added that their insurers can still dispute any claims and that the company would not have any coverage to protect them from fines or government penalties for the derailed disaster.
Workers continue to clean up remaining tank cars in East Palestine, Ohio, on January 21, nearly three weeks after the Norfolk Southern freight train derailment on February 3.
Norfolk Southern CEO Alan Shaw taking a walk outside his home in Atlanta, Georgia on Sunday.
Local waterways are monitored following the derailment of the train carrying toxic chemicals. CFO Mark George gave details of cleanup efforts after vinyl chloride carried by the train leaked into the village’s water.
The financial director also gave details about cleanup efforts after vinyl chloride from the derailed train leaked into the water.
“Since then, we’ve removed more than 15,000 tons of soil and debris, and we’ve also removed more than 1.1 million gallons of impacted water,” he said. “In addition, we have taken steps to install pumps to redirect the flow of sulfur around the derailment site. We are working with environmental experts to collect samples around the groundwater there and at the creek bank.
‘We completed nearly 500 home air tests in conjunction with the EPA and other government agencies. Monitoring has indicated that air quality remains safe. Despite this, we have provided air purifiers for residents to use in their homes. But we also buy air purifiers for the city to use in their buildings.
‘We continue to cooperate with the NTSB in their ongoing investigation into the cause of the derailment. And the NTSB, again as the only reliable source of information on this.