
	First Quarter
	2026		2025
	($ in millions)

Stock-based compensation expense	$	25	$	18
Total tax benefit	7		5

During the first quarter of 2026, no stock options were granted. We granted restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:


	First Quarter
	Granted	Weighted-Average Grant-Date Fair Value


RSUs	197,759	$	287.91
PSUs	78,986	273.82

Stock Options


	First Quarter
	2026		2025
	($ in millions)

Options exercised	39,693		42,552
Cash received upon exercise	$	4	$	4
Related tax benefits realized	1		1

RSUs granted primarily have three- and four-year ratable restriction periods and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock.


	First Quarter
	2026		2025
	($ in millions)

RSUs vested	178,583		152,764
Common Stock issued net of tax withholding	125,200		107,257
Related tax benefits realized	$	2	$	1

PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. No PSUs were earned or paid out during the first quarter of 2026.


	First Quarter
	2025
	($ in millions)

PSUs earned	8,540
Common Stock issued net of tax withholding	5,633
Related tax benefits realized	$	—