Phil Burton
Executive Vice President, North America at SSD
Executive
About Phil Burton
Phil Burton is Executive Vice President, North America at Simpson Manufacturing (SSD), overseeing all North American operations since January 2023; age 62, company tenure 31 years, with a BBA in Marketing/Management from the University of North Texas . Company performance during 2024: net sales $2.2B (+0.8% YoY), operating margin 19.3%, diluted EPS $7.60, ROIC 14.9% . SSD emphasizes pay-for-performance with operating income and MBOs driving annual cash incentives, and revenue growth plus ROIC governing long-term PSUs .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Simpson Strong-Tie (SSD) | Executive Vice President, North America | 2023–present | Oversight of all North American operations |
| Simpson Strong-Tie (SSD) | Vice President, Branch Manager (McKinney, TX) | 2004–2023 | Led branch operations for pivotal growth market |
| Simpson Strong-Tie (SSD) | Sales Manager | 1994–2004 | Commercial leadership in field sales |
External Roles
No external board or director roles disclosed for Mr. Burton in the latest proxy .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 454,480 | 486,294 |
| Target Bonus % (EOCPS) | 70% of base | 70% of base |
| Actual Bonus Paid ($, EOCPS) | 573,608 | 231,914 |
| Profit Sharing Trust Contribution ($) | 33,000 | 34,500 |
Performance Compensation
Incentive Design and Outcomes
| Component | Metric | Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|---|
| EOCPS (Annual Cash, 2024) | Qualified Operating Income + MBO modifier | 40% quarterly / 60% annual | Target award $340,406 | Company QOI: $474,293 vs $548,870 target (86.41%) | $231,914 (68.13% of target) | Paid via quarterly and annual payments by Mar 15 following year; MBO ±20% within capped structure |
| PSUs (2024–2026) | Revenue Growth & ROIC | 50% / 50% | Target 2,172 shares; Max 4,344 | 2024 metrics: Revenue +0.8%, ROIC 15.0% | Earn-out determined on 3-year average; capped at 200% | 3-year measurement; vesting after period (first portion reported to vest in Feb 2027) |
| PSUs (2012 Plan 2022–2024) | Compounded Rev Growth & Avg ROIC (ETANCO excluded) | 50% / 50% | Thresholds: Rev 8.3%, ROIC 14.4%; Targets: Rev 11.0%, ROIC 20.1% | Actual: Rev 6.93% (below threshold), ROIC 22.37% (above target) | 463 shares to Burton (total payout 63.05%) | Concluded after 3-year period |
2024 Equity Grants
| Award Type | Grant Date | Shares |
|---|---|---|
| RSUs | 1/18/2024 | 1,172 |
| PSUs (Total Target over 2024–2026) | 1/18/2024 | 2,172 (Max 4,344) |
Vesting mechanics: RSUs vest in three equal annual installments (years 1–3); PSUs vest based on 3-year average performance, with annual goals set for 2024 awards due to market uncertainty .
Equity Ownership & Alignment
Beneficial Ownership (as of Jan 31, 2025)
| Item | Amount |
|---|---|
| Total shares beneficially owned | 4,044 |
| Shares acquirable within 60 days (RSU vesting) | 2,500 |
| Ownership as % of outstanding | <1% (per proxy footnote) |
| Shares outstanding reference (record date) | 41,974,436 |
Outstanding Awards (as of Dec 31, 2024)
| Grant | Unvested RSUs (#) | Unearned PSUs (Target/Max) (#) |
|---|---|---|
| 1/20/2022 | 132 | 463 PSUs vested; none remaining under this cycle |
| 1/24/2023 | 1,196 | 6,652 (Max) |
| 1/18/2024 | 1,172 | 724 (Target portion for 2024 performance) |
Additional alignment policies:
- Stock ownership guideline for EVP North America: 2x base salary; NEOs have complied or are within allotted time to comply as of Dec 31, 2024 .
- Anti-hedging and anti-pledging policy prohibits hedging and pledging of Company stock .
No options outstanding for NEOs (including Burton) as of year-end 2024 .
Employment Terms
| Provision | Terms |
|---|---|
| Employment status | At-will; no individual employment agreement |
| Executive Severance Plan (effective May 1, 2024) | Involuntary termination (without cause) or resignation for Good Reason: 1x base salary + 1x aggregate annual target EOCPS; COBRA premiums up to 12 months (executives other than CEO) |
| Change-in-Control protection | If qualifying termination during CIC protection period: 2x base salary + 2x greater of target EOCPS for year of CIC or termination; COBRA up to 24 months |
| Equity acceleration (double-trigger) | RSUs/PSUs accelerate only upon sale event/CIC plus termination without cause or for good reason within two years; PSU shares prorated to early vest date; asset sale treatment included |
| Retirement/death/disability | RSUs may accelerate upon retirement (age and service conditions), death, or disability |
| Clawback policy | Executive compensation recovery aligned to SEC/NYSE rules; recovery of erroneously awarded performance-based comp in restatement scenarios |
| Hedging/pledging | Prohibited for directors, officers, employees (policy enforcement detailed) |
Investment Implications
- Pay-for-performance alignment: 2024 cash incentive paid at ~68% of target for Burton, reflecting under-target operating income performance; PSUs tie to revenue growth and ROIC, with 2024 revenue growth modest (+0.8%) and ROIC solid (15.0%)—suggests balanced incentive sensitivity to both growth and capital efficiency .
- Retention risk and leverage: Burton is retirement-eligible for certain equity awards as of 12/31/2024; severance economics (1x base + 1x target bonus, 12 months COBRA) are moderate pre–change-in-control, rising to 2x multiples in a CIC—creating typical retention but not excessive golden parachute risk .
- Ownership alignment: Direct beneficial ownership is small (<1%), though RSUs/PSUs and a 2x salary ownership guideline improve alignment; anti-hedging/pledging policy mitigates alignment red flags .
- Execution track record: SSD delivered 2024 net sales of $2.2B, 19.3% operating margin, $7.60 diluted EPS, and 14.9% ROIC—supportive of long-term PSUs calibrated to revenue growth and ROIC; prior PSU cycle (2022–2024) paid out primarily on ROIC performance as revenue growth missed threshold (payout 63.05%) .