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Christinne Muschi

CN Rail chief executive Claude Mongeau's total remuneration surged nearly 45 per cent to $7.7-million in 2010, his first year heading Canada's largest railway.

Mr. Mongeau, 49, has been with the railway for nearly 17 years and became CEO on Jan. 1, 2010, succeeding Hunter Harrison. Mr. Mongeau's pay package has increased from $5.3-million in 2009 and $2.78-million in 2008.

His base salary increased 60 per cent to $978,405, which the company said was below the market median. But the bulk of the increased remuneration came from bonuses and incentive plans, according to CN's proxy circular filed with the U.S. Securities and Exchange Commission.

Mr. Mongeau received $2.77-million in share-based awards, $1.67-million in option-based awards and a $2-million bonus.

Canadian National Railway's proxy circular, filed ahead of the company's annual meeting, credited Mr. Mongeau with leading efforts to build on the successful precision railroading model put in place by his predecessor.

Other high-ranking CN executives also saw their pay packages substantially increase, some following promotions.

Chief operating officer Keith Creel's total compensation increased 21 per cent to $3.69-million even though his base salary fell to $566,445. The position was previously held by Mr. Mongeau.

Luc Jobin, the chief financial officer, earned $2.73-million, up 54 per cent from $1.77-million in 2009.

Chief marketing officer Jean-Jacques Ruest, who assumed the role on Jan. 1, 2010, saw his compensation increase 45 per cent to $2.48-million.

Compensation for chief legal officer Sean Finn decreased nearly 11 per cent to $2.38-million. His bonus increased but base salary and other awards decreased.

For the full year ended Dec. 31, CN earned $2.1-billion, or $4.48 per share, on nearly $8.3-billion of revenue. That compared with $1.85-billion, or $3.92 per share, on almost $7.4-billion in revenue in 2009.

Excluding special items - including a $131-million after-tax gain from the sale of its Oakville rail property near Toronto - net income was nearly $2-billion, or $4.20 per share. That's up from $1.5-billion, or $3.24 per share in 2009.

On the Toronto Stock Exchange, CN's shares increased 82 cents at $72.54 in morning trading. Over the past year, they have gained nearly 19 per cent or $11.38.

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