Is Burlington Stores, Inc.'s (NYSE:BURL) CEO Pay Fair?

Tom Kingsbury has been the CEO of Burlington Stores, Inc. (NYSE:BURL) since 2008. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

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See our latest analysis for Burlington Stores

How Does Tom Kingsbury's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Burlington Stores, Inc. has a market cap of US$11b, and is paying total annual CEO compensation of US$9.4m. (This figure is for the year to February 2019). That's a fairly small increase of 5.9% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$1.3m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$12m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

So Tom Kingsbury is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Burlington Stores has changed over time.

Is Burlington Stores, Inc. Growing?

Over the last three years Burlington Stores, Inc. has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). It achieved revenue growth of 9.2% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has Burlington Stores, Inc. Been A Good Investment?

Boasting a total shareholder return of 202% over three years, Burlington Stores, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Tom Kingsbury is paid around the same as most CEOs of large companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Burlington Stores shares (free trial).

If you want to buy a stock that is better than Burlington Stores, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.