2015 SUSTAINABILITY REPORT

DIVERSITY AND INCLUSION

GRI

G4-LA1

CULTURE

WORKFORCE INGENUITY

HorsePower Initiative Taps Workforce Ingenuity

At Norfolk Southern, the most creative thinking about ways to enhance safety and customer service often comes from operations employees, who bring diverse backgrounds and experiences. The company’s Corporate Innovation Council in 2013 created HorsePower to tap into that talent.

HorsePower chapters act as local “think tanks” for employees to brainstorm and collaborate. To encourage companywide participation, InnovatioNS sponsors an intranet site for employees to submit, discuss, and rate ideas.

2014 HorsePower Highlights

Bellevue Video Project

After Norfolk Southern completed an expansion of the Bellevue, Ohio, rail yard, the Lake Division HorsePower chapter created a video tour of the terminal from an aerial vantage point. The video will be used as a tool to orient and train new hires.

Conductor
Tool Bag

Transportation employees developed a water-resistant tool bag so conductors can keep their hands free while walking alongside track to check rail cars during train-emergency situations.

“Wave” Technology

Police Department employees learned about and adopted a cloud-based software that enables them to use a smartphone as a push-to-talk device to communicate with two-way radios.

Floor Numbering Plan

The Norfolk HorsePower chapter is developing a numbering system to make it easier for employees in the 20-story McKinnon headquarters building to locate co-workers, conference rooms, and other areas. The idea is designed to enhance security, save time, and orient new employees.

2014 New Hires

In 2014, Norfolk Southern hired 2,249 new employees, with conductor trainees making up more than half the hires. The railroad created good-paying jobs in every state in the company’s 22-state network. The top state was Pennsylvania, with 554 hires, followed by Ohio, Georgia, Indiana, Virginia, and Illinois.

Working for the Railroad

As a Fortune 300 company, Norfolk Southern offers competitive pay and benefits to attract a talented and diverse workforce. A range of career opportunities is available, from professional management and operations supervisory jobs to unionized craft positions responsible for maintaining rail cars and locomotives, replacing track, and operating trains.

More than 80 percent of the company’s workforce is represented by trade unions. The unionized positions pay well, offer stable employment, and do not require a college degree. The compensation for hourly craft positions is well above minimum wage, starting at around $40,000 annually for conductor trainees, for example, and rising to between $50,000 and $75,000 as they become conductors and gain certification as train engineers. Those figures do not count benefits, which include medical, dental, and vision coverage, 401(k) plan with company match, education assistance, paid vacation and holidays, and railroad retirement.

See the Career Paths section on Norfolk Southern’s website for more information.

Board of Directors Demographics 2014

MALE FEMALE WHITE BLACK HISPANIC OTHER MINORITIES TOTAL
Board 11 2 11 2 13
Governance & Nominating 4 1 4 1 5
Audit 4 2 4 2 6
Compensation 5 5 5
Executive 4 1 5 5
Finance 5 1 5 1 6
under 30 0
30-50 1
50+ 12

SENIOR MANAGEMENT BY ETHNIC ORIGIN, RACE, GENDER*

FEMALE MALE TOTAL
Hispanic/Latino
    Not Assigned 1 1
    White 1 1
Not Hispanic/Latino
    Black or African American 3 3
    White 2 22 24
TOTAL 3 26 29
*Senior management includes CEO, president, executive vice presidents, and vice presidents

EMPLOYEES BY ETHNIC ORIGIN, RACE, GENDER*

FEMALE MALE TOTAL % OF WORKFORCE
White 1,364 23,359 24,723 84.0%
Black or African American 701 3,185 3,886 13.0%
Hispanic/Latino 22 387 409 1.40%
Asian 35 111 146 0.60%
Other 20 276 296 1.0%
*As of 12/31/2014

EMPLOYEES BY WORK GROUP*

FEMALE MALE TOTAL
Agreement (unionized) 1,155 23,365 24,520
Nonagreement 987 3,953 4,940
Grand Total 2,142 27,318 29,460
*As of 12/31/2014

2014 NEW HIRES BY GENDER/WORK GROUP

AGREEMENT NONAGREEMENT TOTAL
Female 167 69 236
Male 1,841 172 2,013
Grand Total 2,008 241 2,249

2014 EMPLOYEE TURNOVER BY WORK GROUP

AGREEMENT NONAGREEMENT TOTAL
1,944 661 2,605