Steven G. Burdette
About Steven G. Burdette
Age 63; President & CEO of Havertys since January 1, 2025; over 42 years at Havertys in roles spanning operations and the presidency; appointed to the board in January 2025 as a management director . Company operating context under his leadership includes Q3 2025 EPS of $0.28, sales up 10.6% to $194.5M, comps +7.1%, and gross margin 60.3% . For 2024, Havertys delivered EBITDA of $41.682M, pre-tax income of $26.153M, and net sales of $722.9M; company TSR value of initial fixed $100 investment was $162 in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Havertys | Executive Vice President, Operations | 2017–2021 | Long-tenured operator rising through field and corporate roles, positioned to lead day-to-day execution . |
| Havertys | President | 2021–2024 | Senior leadership of merchandising/operations; successor grooming for CEO transition . |
| Havertys | President & Chief Executive Officer; Management Director on Board | 2025–present | CEO role separated from Executive Chairman; board oversight leveraging independent committee chairs . |
Fixed Compensation
| Metric ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $462,833 | $525,000 | $525,000 |
| All Other Compensation | $48,544 | $46,845 | $48,550 |
| Change in Pension Value | — | $23,326 | $473 |
- Effective Jan 1, 2025: base salary increased to $650,000; target annual cash incentive increased to 100% of salary; LTI target increased to $1,075,000 (vs. $499,000 target in 2024) .
Performance Compensation
Annual Incentives (MIP) – 2024
| Component | Metric | Weighting | Target | Actual/Outcome | Payout to Burdette ($) |
|---|---|---|---|---|---|
| MIP-I | Pre-tax earnings (quarterly + annual) | 80% of MIP | Annual goal $40.0M; quarterly goals set at $12.9M, $7.1M, $9.3M, $10.7M | Annual actual $26.2M (65% of goal); total MIP-I earned 19% of target | $55,448 |
| MIP-II | Individual strategic/operational goals | 20% of MIP | Agreed individual goals | 100% of target achieved | $73,500 |
| Total | Combined MIPs | — | — | Average total payout ~35.1% of target for NEOs | $128,948 |
Long-Term Incentives – 2024 Grant Design and Outcomes
| Award Type | Performance Metric | Grant Date | Target Shares | Earned Shares | Vesting | Grant Price | Grant Date Value ($) |
|---|---|---|---|---|---|---|---|
| PRSU (EBITDA) | Adjusted EBITDA (FY2024) | Jan 25, 2024 | 8,000 | 52% of target = 4,160 | Cliff vest Feb 2027 | $34.73 | $277,840 |
| PRSU (Sales) | Net Sales (FY2024) | Jan 25, 2024 | 2,000 | 0% earned (actual $722.9M < threshold) | n/a | $34.73 | $69,460 |
| RSU (Time-based) | Service | Jan 25, 2024 | 4,286 | n/a | 3 equal annual tranches starting May 2025 | $34.73 | $148,853 |
- 2024 PRSUs tied 80% to EBITDA, 20% to Sales; EBITDA awards earned at 52%, Sales forfeited; all earned PRSUs vest Feb 2027 .
Equity Ownership & Alignment
Beneficial Ownership (as of March 11, 2025)
| Security Class | Shares Beneficially Owned | Percent of Class |
|---|---|---|
| Common Stock (HVT) | 24,943 | <1% |
| Class A Common (HVTA) | 28,530 | 2.3% |
Outstanding Equity Awards (as of Dec 31, 2024; last trading day price $22.26)
| Grant | Type | Shares Not Vested (#) | Market Value ($) | Equity Incentive Plan: Unearned Not Vested (#) | Market/Payout Value ($) |
|---|---|---|---|---|---|
| 1/25/2024 | RSU | 4,286 | $95,406 | — | — |
| 1/25/2024 (EBITDA PRSU) | PRSU (Earned 52%) | — | — | 4,160 | $92,601 |
| 1/26/2023 | RSU | 2,822 | $62,818 | — | — |
| 1/26/2023 (EBITDA PRSU) | PRSU (Earned 83.9%) | 6,697 | $149,075 | — | — |
| 1/26/2023 (Sales PRSU) | PRSU (Earned 44.5%) | 888 | $19,767 | — | — |
| 1/26/2022 | RSU | 1,320 | $29,383 | — | — |
| 1/26/2022 (EBITDA PRSU) | PRSU (Earned 104.3%) | 7,787 | $173,339 | — | — |
| 1/26/2022 (Sales PRSU) | PRSU (Earned 101.7%) | 1,899 | $42,272 | — | — |
Vesting and Selling Pressure Indicators
- RSUs vest in equal annual installments beginning May 2025; PRSUs earned for FY2024 EBITDA cliff vest in February 2027, creating potential selling windows around those dates .
- 2024 stock vested: 17,027 shares; net shares received 9,302 after tax withholding—indicating realized liquidity from vesting events .
- Hedging/pledging prohibited; directors and executive officers are prohibited from pledging or holding Havertys securities in margin accounts; no outstanding pledges or margin accounts reported .
- Executive stock ownership guidelines: CEO required minimum of 6.0x salary or 135,000 shares; unvested time-based and earned performance RSUs (reduced by 25% for taxes) count toward guidelines; all NEOs currently meet guidelines .
Deferred Compensation (Top Hat and Deferred Plans)
| Plan | Executive Contributions 2024 ($) | Company Contributions 2024 ($) | Earnings 2024 ($) | Withdrawals 2024 ($) | Aggregate Balance ($) |
|---|---|---|---|---|---|
| Deferred Compensation Plan | $114,142 | $15,130 | $70,307 | $(93,441) | $760,348 |
Pension Benefits (SERP)
| Name | Plan | Years Credited Service | Present Value of Accumulated Benefits ($) | Notes |
|---|---|---|---|---|
| Steven G. Burdette | SERP | 32 | $282,531 | SERP frozen; no new benefits since 2015; early retirement factors apply . |
Employment Terms
- No fixed-term employment agreement; executives covered by change-in-control agreements that auto-renew annually .
- Change-in-control economics (double trigger): 2x salary+bonus; pro-rata final year bonus; 24 months of medical and life premium reimbursement; acceleration per plan terms; no tax gross-ups .
- Estimated Burdette payouts (12/31/2024 assumptions): Severance $1,598,537; Healthcare/Other $49,431; Long-Term Incentives $664,661 in both “No Termination” and “Termination for Good Reason/Not for Cause” scenarios; RSUs/PRSUs vest on death/disability .
| Scenario (12/31/2024) | Severance ($) | Healthcare & Other ($) | Long-Term Incentive ($) |
|---|---|---|---|
| Change in Control – No Termination | — | — | $664,661 |
| Change in Control – Involuntary for Good Reason/Not for Cause | $1,598,537 | $49,431 | $664,661 |
| Death/Disability | — | — | $664,661 |
- Clawback policy compliant with NYSE listing standards covers restatements and misconduct .
Board Governance
- Board leadership separated: Executive Chairman (Clarence H. Smith) and CEO (Steven G. Burdette); Lead Independent Director (G. Thomas Hough) chairs executive sessions of independent directors .
- Burdette serves as a management director appointed in January 2025; board comprises seven independent directors, two non-independent directors (including Executive Chairman), and Burdette .
- Committees and independence: Audit Committee (all members “financial experts”), NCG Committee (independent members only), Executive Committee; independent chairs for committees .
- Hedging/pledging prohibited; related party transaction policy in place; no related party transactions requiring disclosure in 2024 .
- Dual-class structure sustained “patient capital” approach; independent oversight and lead director mitigate potential CEO-board role concentration .
Director & Executive Compensation Program Context
- Pay-for-performance design: variable compensation significant; 2024 variable comprised ~75% of CEO target comp and 60% for other NEOs; long-term equity ~49% of CEO target comp in 2024 .
- Performance metrics: Pre-tax income (MIP-I), Adjusted EBITDA (PRSUs), Net Sales (PRSUs) .
- Compensation consultant: Meridian engaged; no conflicts; peer benchmarking applied annually .
- 2024 say-on-pay support ~98% .
Compensation Peer Group (2024)
| Peers |
|---|
| American Woodmark; Arhaus Inc.; Bassett Furniture Industries; Big 5 Sporting Goods; Conn’s; Culp; Ethan Allen; Flexsteel; Hibbett Sports; Hooker Furnishings; La‑Z‑Boy; Miller Knoll; Oxford Industries; Sleep Number; Lovesac . |
Multi-Year Compensation Summary (NEO: Steven G. Burdette)
| Metric ($) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $462,833 | $525,000 | $525,000 |
| Non-Equity Incentive | $369,516 | $324,341 | $128,948 |
| Stock Awards (Grant-Date Fair Value) | $384,790 | $472,486 | $496,153 |
| Change in Pension Value | — | $23,326 | $473 |
| All Other Compensation | $48,544 | $46,845 | $48,550 |
| Total | $1,302,850 | $1,391,998 | $1,199,124 |
Pay Versus Performance (Company context, FY2020–FY2024)
| Year | PEO SCT Total ($) | PEO CAP ($) | Avg Non-PEO SCT ($) | Avg Non-PEO CAP ($) | TSR (Value of $100) | Net Income ($000) | Pre-Tax Income ($000) |
|---|---|---|---|---|---|---|---|
| 2020 | $2,437,008 | $3,382,845 | $1,013,649 | $1,268,297 | 153 | 59,148 | 76,731 |
| 2021 | $3,161,832 | $3,814,594 | $1,215,126 | $1,490,490 | 184 | 90,803 | 118,535 |
| 2022 | $2,679,191 | $2,646,013 | $1,170,014 | $959,065 | 193 | 89,358 | 119,501 |
| 2023 | $2,887,694 | $3,479,323 | $1,134,652 | $1,292,075 | 246 | 56,319 | 72,711 |
| 2024 | $2,604,854 | $609,226 | $927,201 | $366,433 | 162 | 19,956 | 26,153 |
Investment Implications
- Alignment: CEO’s 2025 package lifts variable-at-risk exposure (target bonus to 100% of salary; LTI target to $1.075M), with PRSUs tied to EBITDA/Sales reinforcing pay-for-performance; clawback and double-trigger CIC with no tax gross-ups are shareholder-friendly .
- Retention and liquidity cadence: RSU tranches begin vesting May 2025; 2024 EBITDA PRSUs cliff vest Feb 2027; 2024 vesting produced 17,027 shares, net 9,302 delivered—monitor potential selling pressure around vesting dates .
- Ownership and risk controls: Beneficial ownership of 24,943 common and 28,530 Class A (2.3% of Class A); hedging/pledging prohibited; NEOs meet ownership guidelines, reducing misalignment risk .
- Governance checks on dual role: CEO is a management director but board separates Chair/CEO, maintains a Lead Independent Director, and independent committee leadership—mitigating independence concerns alongside robust related-party and risk oversight frameworks .
- Performance momentum: Q3 2025 sales +10.6% and comps +7.1% with margin stability under Burdette’s leadership supports operational execution; sustained SG&A discipline and store growth plans (target five net new in 2026) could underpin medium-term EPS leverage .
- Shareholder sentiment: Prior say-on-pay ~98% approval suggests support for the compensation framework; ongoing adherence to peer benchmarking and disciplined metrics should maintain investor confidence .