Norfolk Southern (NYSE: NSC) has restructured some of its departments amid the departure of Chief Strategy Officer John Scheib on June 1.
Strategy and operations functions previously led by Scheib will be integrated into the finance, operations and marketing divisions of Norfolk Southern (NS) to create “efficiencies and closer alignment among teams,” NS said.
The changes include the following:
- The Strategic Planning Department will move to the Finance Division, led by Chief Financial Officer Mark George. The Finance Division, which just created a financial planning and analysis group (see below), is responsible for fortifying NS’ analysis and metrics and competitive benchmarking.
- The Network Planning and Optimization Department will be integrated into the Operations Division, led by Chief Operating Officer Mike Wheeler. NS said the department “played an integral role in developing and successfully rolling out the TOP21 operating plan,” the NS version of precision scheduled railroading.
- The Customer Operations Department will move to the Marketing Division, headed by Chief Marketing Officer Alan Shaw. NS said the move would enhance the company’s customer service.
“This new structure positions Norfolk Southern for continued success as a faster, smarter and more resilient company,” said NS CEO Jim Squires. “We are achieving further cost savings, enhancing collaboration, and increasing operational efficiency, all while maintaining superior customer service.”
“With our strategic plan firmly established and producing results ahead of schedule, now is a good time for me to start a new chapter,” Scheib said. “It’s been a privilege to be part of Norfolk Southern’s successful transformation, as chief strategy officer and before that as chief legal officer, and work alongside the best employees in the industry.”
Additional changes to the Finance Division
The organizational changes NS announced yesterday follow the reorganization of its Finance Division in May.
“As we continue to implement our strategic plan and push toward a 60% operating ratio, we are enhancing our finance organization to drive improved performance across our business,” George said in a May 15 release.
NS established the financial planning and analysis department, which will seek ways for NS to manage its assets and control costs.
WIthin the department, Jason Zampi will serve as vice president of financial planning and analysis. He has been with NS for nine years, serving in leadership roles in finance, treasury and accounting, NS said. He was previously a senior manager with KPMG.
Clyde “Jake” Allison Jr. will be responsible for all accounting functions as vice president and controller. Allison currently serves as vice president and treasurer. He has been with NS for 26 years, serving most recently as vice president and treasurer. He also was involved in audit and compliance, material management, accounting and treasury. His career began at KPMG as a manager.
Chris Neikirk will serve as vice president of treasury and investor relations. He has also been at NS for 26 years, most recently as assistant vice president for finance, cost and treasury. Neikirk has also served in marketing, energy and properties, finance, treasury and the chairman’s office at NS. Pete Sharbel, current director investor relations, will report to Neikirk in this new role, according to NS.
The changes became effective on June 1.