8-KLeadership Changes

Burlington Stores, Inc. 8-K Report, Executive Changes (Jul 2, 2020)

Filed July 2, 2020For Securities:BURL

Summary

Burlington Stores, Inc. (BURL) filed an 8-K on July 2, 2020, to disclose the finalization and award of 2019 cash bonuses to its named executive officers. The Compensation Committee had previously delayed this decision due to the uncertainty caused by the COVID-19 pandemic, seeking greater clarity on its impact. The bonuses, totaling over $3.5 million across five named executive officers, were finalized on June 29, 2020, and reflect the company's actual performance in fiscal year 2019 as outlined in the Annual Incentive Plan. These bonus amounts are significant additions to the base compensation, with the CEO, Michael O'Sullivan, receiving $764,934. When combined with previously reported figures, the total compensation for these executives in fiscal 2019 is substantial, reaching over $42 million for the CEO alone. Importantly, the company states that these finalized bonus amounts do not alter the previously disclosed pay ratio, as those calculations already incorporated the projected bonus figures.

Key Highlights

  • 1Burlington Stores finalized and awarded 2019 cash bonuses to its named executive officers on June 29, 2020.
  • 2The bonus determination was delayed from its original schedule due to uncertainty related to the COVID-19 pandemic.
  • 3Total 2019 bonus payout to the five named executive officers amounts to $3,579,200.
  • 4CEO Michael O’Sullivan received the largest bonus at $764,934.
  • 5The bonuses reflect the company's actual performance in fiscal year 2019 under the Annual Incentive Plan.
  • 6These awarded bonuses are scheduled to be paid on July 3, 2020.
  • 7The company confirmed that these finalized bonus figures do not change the previously reported pay ratio disclosure.

Frequently Asked Questions

The Compensation Committee of Burlington Stores' Board of Directors delayed the determination and finalization of the 2019 cash bonuses until later in fiscal year 2020 to gain more clarity on the impact of the COVID-19 pandemic on the company's financial performance and outlook.

CEO Michael O'Sullivan received a 2019 bonus of $764,934. His total calculated compensation for fiscal 2019, including this bonus and other elements, was $31,821,531.

No, the company stated that there are no changes to the pay ratio disclosure because the calculation already included the projected results for the 2019 bonuses.

The 2019 bonuses awarded to the continuing named executive officers are expected to be paid out on July 3, 2020.