8-KMaterial AgreementsOther EventsExhibits & Filings

COSTCO WHOLESALE CORP /NEW 8-K Report, Material Agreement (Jan 29, 2010)

Filed January 29, 2010For Securities:COST

Summary

Costco Wholesale Corporation filed an 8-K report on January 29, 2010, detailing two primary events for investors. First, the company announced the approval by its shareholders of an amendment to the Fifth Restated 2002 Stock Incentive Plan. This amendment effectively increases the number of shares available for grant under the plan by eighteen million, indicating a commitment to equity-based compensation and potential future dilution for shareholders. Second, the Board of Directors declared a quarterly cash dividend of $0.18 per share. This dividend is payable on February 26, 2010, to shareholders of record on February 12, 2010. This action signals continued returns of capital to shareholders, a positive indicator for income-focused investors.

Key Highlights

  • 1Shareholder approval of an amendment to the Fifth Restated 2002 Stock Incentive Plan.
  • 2Increase of eighteen million shares available for grant under the stock incentive plan.
  • 3Declaration of a quarterly cash dividend of $0.18 per share.
  • 4Dividend payment date set for February 26, 2010.
  • 5Record date for dividend eligibility is February 12, 2010.
  • 6The filing includes a press release dated January 28, 2010, as an exhibit.

Frequently Asked Questions

The increase of eighteen million shares available for grant under the stock incentive plan suggests that Costco intends to continue using equity-based compensation for its employees and executives. Investors should monitor the issuance of these shares and consider the potential for dilution to existing shareholders.

Costco declared a quarterly cash dividend of $0.18 per share. This dividend is scheduled to be paid on February 26, 2010, to shareholders who are on record as of the close of business on February 12, 2010.

In addition to the stock incentive plan amendment and dividend declaration, the 8-K filing includes a press release dated January 28, 2010, as an exhibit. The filing is signed by Richard A. Galanti, Executive Vice President and Chief Financial Officer.