Kurt D. Barton
TRACTOR SUPPLY CO /DE/About Kurt D. Barton
Executive Vice President – Chief Financial Officer and Treasurer of Tractor Supply Company (TSCO). Age 53, CPA; joined TSCO in 1999 and has served as CFO since February 2019 after roles including Controller and SVP CFO/Treasurer; began career at Ernst & Young in 1993 . Under his finance leadership, TSCO executed a 5‑for‑1 stock split, maintained disciplined cost structure, increased dividends for the 15th consecutive year, returned >$1B to shareholders, and advanced capital allocation and acquisitions (e.g., Allivet) . 2022 PSU cycle paid at 30% of target based on net sales and EPS achievement; relative TSR over the 3‑year period was 68.41%, resulting in no modifier change .
Company Performance (multi‑year; USD)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($) | $14,204,717,000 | $14,555,741,000 | $14,883,231,000 |
| Net Income ($) | $1,088,712,000 | $1,107,226,000 | $1,101,240,000 |
| Diluted EPS (stock‑split adjusted) | 1.94* | 2.02 | 2.04 |
| EBITDA ($) | $1,778,005,000* | $1,871,961,000* | $1,914,694,000* |
| *Values retrieved from S&P Global. |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Tractor Supply Company | EVP – CFO & Treasurer | Feb 2019–present | Capital allocation (> $1B shareholder returns), dividend increases, stock split; cost discipline |
| Tractor Supply Company | SVP – CFO & Treasurer | Mar 2017–Feb 2019 | Transitioned finance leadership; strengthened capital markets |
| Tractor Supply Company | SVP – Controller | Feb 2016–Mar 2017 | Led accounting oversight; control environment |
| Tractor Supply Company | VP – Controller | Feb 2009–Feb 2016 | Scaled accounting for growth |
| Tractor Supply Company | Director, Internal Audit | Jul 2002–Feb 2009 | Built internal audit and controls |
| Ernst & Young LLP | Public Accounting | 1993–1999 | CPA foundation; assurance experience |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| KeHE Distributors, LLC | Director | Since Oct 2024 | Industry network; supply chain insights |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (% of Salary) | Target Bonus ($) | Actual Bonus Paid ($) |
|---|---|---|---|---|
| 2024 | 700,000 | 75% | 525,000 | 454,917 |
| 2023 | 680,000 | 75% | 510,000 | 417,669 |
Notes:
- 2024 CIP payout factors: Company attained 86.4% of target net income; two of four strategic initiatives above target and one above threshold .
- Committee did not apply discretionary adjustments to CIP bonuses in 2024 .
Performance Compensation
Long‑Term Incentive (LTI) Mix and Vesting
| Component | Target Mix | Vesting | 2024 Grant Value ($) |
|---|---|---|---|
| Stock Options | 25% | Ratable over 3 years from grant date | 400,000 |
| RSUs | 25% | Ratable over 3 years from grant date | 400,000 |
| PSUs | 50% | Cliff vest 100% at 3 years, subject to performance & TSR modifier | 800,000 |
PSU Design and Results (2012 Plan grants)
| Grant Year | Performance Period | Metrics | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|---|
| 2022 | Fiscal 2024 (3‑yr) | Net Sales | 50% | $15,650,000k | $14,883,231k | 30% of target (overall) | Cliff at 3 years |
| 2022 | Fiscal 2024 (3‑yr) | EPS (split‑adjusted) | 50% | $2.23 | $2.04 | 30% of target (overall) | Cliff at 3 years |
| 2024 | Fiscal 2026 (3‑yr) | Net Sales & EPS | 50% each | Board‑set (challenging, includes buybacks) | N/A (in‑flight) | N/A | Cliff at 3 years; +/-25% TSR modifier vs S&P 500 |
Relative TSR modifier (2024 PSUs): +25% at ≥75th percentile; −25% at <25th percentile; none otherwise . The 2022 cycle TSR was 68.41% with no adjustment .
2024 Option Exercises and Stock Vested
| Name | Shares Exercised (#) | Value Realized on Exercise ($) | Shares Vested (#) | Value Realized on Vesting ($) |
|---|---|---|---|---|
| Kurt D. Barton | 117,660 | $5,334,084 | 58,080 | $2,682,286 |
Equity Ownership & Alignment
Beneficial Ownership (as of March 21, 2025)
| Holder | Shares Owned | Options/PSUs/RSUs Vesting ≤60 Days | Deferred RSUs (Vested) | Total | % of Class |
|---|---|---|---|---|---|
| Kurt D. Barton | 42,586 | 553,700 | — | 596,286 | <1% |
- Stock Ownership Guidelines: Executive Vice President must hold 3× base compensation; all executive officers meet or are within initial compliance period as of record date .
- Anti‑Hedging/Pledging Policy: Prohibits hedging, short sales, option transactions, and pledging/margin accounts .
- Insider Transactions (recent): Planned and open‑market sales including 12,146 shares at $56 on Feb 13, 2025; tax withholding and option award entries on Feb 12, 2025 . Additional 2024 transactions include planned sale of 10,995 shares at $275 (Aug 28, 2024) and sales of 18,517 and 5,015 shares at ~$295–$296 (Oct 1, 2024) .
Employment Terms
| Provision | Details |
|---|---|
| Change‑in‑Control Agreements | Double‑trigger; term through Feb 28, 2028 with auto annual renewal unless notice; no excise tax gross‑ups; amounts reduced if beneficial to avoid 280G/4999 taxes . |
| Severance (post‑CIC) | 1.5× (CEO 2.0×) base + target bonus (higher of termination year or CIC year) payable lump sum; 2 years of life/disability/medical benefits; outplacement up to $40,000; pro‑rata bonus based on greater of target or projected performance . |
| Equity Treatment (post‑CIC) | Unvested options become fully vested; RSUs/other equity fully vested; PSUs settled at target unless more favorable in award docs; if successor assumes PSUs, vest per schedule with protective vesting if termination within 1 year post‑CIC; if not assumed, target PSUs vest at CIC . |
| Non‑compete | 18 months for NEOs following termination after CIC; 24 months for CEO . Protective agreements tied to 2024 PSUs include 18‑month non‑compete/non‑solicit and forfeiture upon breach . |
| Clawback Policy | Recovery of incentive compensation earned/vested within 3 fiscal years preceding a restatement; covers financial reporting measures and stock price/TSR‑based awards . |
Potential Payments (Illustrative, assuming Dec 28, 2024 trigger)
| Scenario | Base ($) | Bonus ($) | Equity Acceleration ($) | Benefits + Outplacement ($) | Total ($) |
|---|---|---|---|---|---|
| CIC termination (double‑trigger) | 1,050,000 | 1,312,500 | 5,611,043 | 102,276 (benefits+life+outplacement) | 8,075,819 |
| Death/Disability | — | — | 4,762,990 | — | 4,762,990 |
Multi‑Year Compensation (SEC Summary Compensation Table)
| Component ($) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary | 681,539 | 703,846 | 697,692 |
| Stock Awards | 1,499,799 | 1,124,795 | 1,199,619 |
| Option Awards | 499,999 | 374,962 | 399,974 |
| Non‑Equity Incentive | 571,139 | 417,669 | 454,917 |
| All Other Compensation | 37,045 | 41,820 | 44,337 |
| Total | 3,289,521 | 2,663,092 | 2,796,539 |
Outstanding Equity Awards (Fiscal Year‑End 2024)
Stock Options (Barton)
| Grant Date | Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration |
|---|---|---|---|---|
| 2/7/2018 | 168,195 | — | 13.46 | 2/7/2028 |
| 2/6/2019 | 107,480 | — | 17.92 | 2/6/2029 |
| 2/5/2020 | 121,355 | — | 18.22 | 2/5/2030 |
| 2/3/2021 | 74,680 | — | 28.64 | 2/3/2031 |
| 2/9/2022 | 33,385 | 16,695 | 44.39 | 2/9/2032 |
| 2/8/2023 | 10,260 | 20,520 | 46.55 | 2/8/2033 |
| 2/5/2024 | — | 34,180 | 46.59 | 2/5/2034 |
Unvested RSUs and PSUs (Barton)
| Grant Date | RSUs Unvested (#) | Market Value ($) | PSUs (Unearned) (#) | Payout Value ($) |
|---|---|---|---|---|
| 2/9/2022 | 3,905 | 213,057 | 22,205 | 1,211,505 |
| 2/8/2023 | 5,565 | 303,626 | 15,765 | 860,138 |
| 2/5/2024 | 8,945 | 488,039 | 17,030 | 929,157 |
Notes:
- RSUs vest one‑third annually; PSUs cliff vest on 3‑year anniversary subject to performance and TSR modifier .
Compensation Structure Analysis
- Cash vs. Equity Mix: 2024 total direct compensation emphasizes equity (stock and option awards ~$1.6M target) over cash; similar balanced structure retained from 2023 .
- At‑Risk Pay: Significant at‑risk through PSUs tied to net sales and EPS; TSR modifier enhances alignment .
- Performance Outcomes: 2022 PSUs paid 30% of target, indicating challenging targets and macro impacts; reinforces pay‑for‑performance discipline .
- Governance Protections: No option repricing without shareholder approval; robust clawback; anti‑hedging/pledging; double‑trigger CIC; no excise tax gross‑ups .
Say‑on‑Pay & Shareholder Feedback
| Year | Approval (%) |
|---|---|
| 2023 | 89.4% |
| 2024 | 93.0% |
Expertise & Qualifications
- CPA; extensive accounting, audit, and finance leadership at TSCO; public audit background at EY .
- Public company board experience (KeHE) adds distribution and supply chain perspective .
Risk Indicators & Red Flags
- Pledging/Hedging: Prohibited; no reported pledging activity .
- Tax Gross‑Ups: Not provided; agreements include cut‑back for 280G if beneficial .
- Insider Selling: Regular planned/open‑market sales observed in 2024–2025; notable sales Aug–Oct 2024 and Feb 2025; monitor for upcoming vesting and trading windows .
- PSU Outcome: 30% payout for 2022 cycle signals challenging targets; alignment preserved .
- Legal/Investigations: No disclosures of proceedings or SEC investigations in cited materials.
Compensation Peer Group (for benchmarking)
Advance Auto Parts; AutoZone; Bath & Body Works; Best Buy; BJ’s Wholesale; Burlington; Casey’s; Dick’s Sporting Goods; Dollar General; Dollar Tree; O’Reilly Automotive; Ross Stores; ULTA Beauty .
Investment Implications
- Alignment and downside protection: Strong guardrails (no hedging/pledging, clawback, double‑trigger CIC) reduce governance risk; PSU design with TSR modifier ties pay to value creation .
- Execution risk vs. incentive hurdles: 2022 PSU payout at 30% shows targets can bite, limiting windfalls in weaker years; supports pay discipline .
- Insider selling and vesting cadence: Barton’s periodic planned/open‑market sales around vesting cycles suggest predictable supply; monitor Form 4s near annual grant/vest dates (Feb) for near‑term technical pressure .
- Performance backdrop: Steady revenue and EBITDA growth through 2024 amid macro and weather headwinds, with continued shareholder returns and disciplined cost structure supporting valuation credibility under Barton’s finance stewardship .