The Hawks announced Burgoyne would play for a 20th and final season in 2021 before taking an off-field role.
Hodge was happy to see his former teammate given the chance to reach the 400-game milestone but questioned the direction of the club for prioritising a veteran over a youngster.
“I’m absolutely rapt [for Shaun Burgoyne after the contract extension],” he said on SEN’s Crunch Time.
“As far as Hawthorn for where they’re going and where they’re aiming, I’m confused as ever.
“I thought the writing was on the wall a few weeks ago when they said they weren’t going to get rid of their first draft pick, they started to play a lot of younger guys to get them ready and I thought they were well-positioned.
“For Burgoyne, I think it’s great but [coach Alastair Clarkson] has always been about ‘who’s going to be in our next premiership team’ and I don’t know if Clarko loves Shaun enough that he’s overpowered [football boss] Graham Wright or he’s confused where they’re going … I don’t know.”
Burgoyne has played 387 games and is on the verge of becoming the fifth player to reach 400 games in AFL/VFL history.
The Hawks have yet to make a decision on the futures of fellow veterans Ben Strattan, Paul Puopolo, Isaac Smith, Ricky Henderson and James Frawley, while Jack Gunston and Luke Breust are believed to be on the trade table.