Norfolk Southern’s chief executive is putting his own money toward a scholarship fund for East Palestine students, but locals want more from the company behind the train derailment that caused an environmental disaster.
Norfolk Southern Corp.
NSC,
CEO Alan Shaw personally created a $445,000 scholarship fund for local students, the company said Thursday. The fund will award scholarships annually, and students can use the money to attend four-year universities or two-year vocational schools.
The scholarship fund brings Norfolk Southern’s financial commitments to East Palestine to more than $12 million, as residents cope with ongoing questions about their town’s safety and future. Norfolk Southern has said that the air and water in the area affected by the Feb. 3 derailment are safe, and that residents should not be worried about strange odors or long-term health effects.
Despite those assurances, locals say they’re concerned about possible health problems arising in the future, and some at a public forum this week asked the company to help them move away from East Palestine, the Associated Press reported. “It’s not safe here,” said one man, according to the AP. “I’m begging you, by the grace of God, please get our people out of here.”
Norfolk Southern’s contributions to the community include more than $6 million in direct cash assistance to local families, donations to local school districts and the fire department, and a $1 million community fund. The company says it has also been buying products from local businesses, including 100 bouquets from a local florist that were to be distributed to people in assisted-living facilities.
Securities and Exchange Commission filings show Shaw sold 2,000 Norfolk Southern shares this week, with a market value of $448,231. The company’s stock price has plummeted since the derailment. Shares closed at $252 on Feb. 3, the day of the derailment, and were trading at $228 on Friday.
Shaw became CEO in 2022. The previous CEO’s total compensation package was $14 million in 2021, including a base salary, stock and option awards and other compensation, the most recently available SEC filing shows. Norfolk Southern did not respond immediately to a request for comment.
Norfolk Southern’s share price is down 7.5% for the year to date, compared to a 0.41% gain for the Dow Jones Industrial Average
DJIA,
and a 5% increase for the S&P 500 Index
SPX,
over the same period.
