8-KLeadership ChangesMaterial AgreementsExhibits & Filings

Burlington Stores, Inc. 8-K Report, Material Agreement (Jun 1, 2015)

Filed June 1, 2015For Securities:BURL

Summary

Burlington Stores, Inc. (BURL) filed a Form 8-K on June 1, 2015, to report an amendment to the employment agreement of its President, CEO, and Chairman, Thomas Kingsbury. The amendment, effective May 29, 2015, alters Mr. Kingsbury's compensation structure. Specifically, it removes a previously established annual cash award of $225,000, which was contingent on his continued employment on December 15th each year, starting in 2014. In exchange for the removal of this annual cash award, Mr. Kingsbury's annual incentive target under the company's incentive plan has been increased from 125% to 150% of his base salary. This change signifies a shift in how the CEO's performance-based compensation is structured, potentially aligning his incentives more closely with broader company performance metrics within the incentive plan, while removing a fixed annual bonus. Investors should note this adjustment as it impacts the executive compensation framework of a key leader.

Key Highlights

  • 1Amendment to the employment agreement of CEO Thomas Kingsbury, dated May 29, 2015.
  • 2Removal of a $225,000 annual cash award for Mr. Kingsbury, contingent on his continued employment.
  • 3Increase in Mr. Kingsbury's annual incentive target from 125% to 150% of his base salary.
  • 4The amendment adjusts the structure of executive compensation for the top leader.
  • 5The filing indicates a strategic shift in performance-based compensation for the CEO.
  • 6This change impacts how a significant portion of CEO compensation is determined going forward.

Frequently Asked Questions

The primary purpose of this Form 8-K filing is to report an amendment to the employment agreement of Burlington Stores' President, CEO, and Chairman, Thomas Kingsbury, specifically concerning changes to his compensation.

The amendment removed a guaranteed annual cash award of $225,000 that Mr. Kingsbury was eligible to receive each year he remained employed. In its place, his annual incentive target under the company's incentive plan was increased from 125% to 150% of his base salary.

The company likely made these changes to better align the CEO's incentives with overall company performance as measured by the annual incentive plan, rather than relying on a fixed annual cash payment. This shift could encourage a stronger focus on achieving broader company goals and potentially offers a greater upside if the company performs exceptionally well.

This filing specifically addresses an amendment to an executive employment agreement and does not directly provide information on the company's financial performance or future outlook. It solely concerns the compensation structure of the CEO.