Summary
Costco Wholesale Corp (COST) filed an 8-K on October 30, 2013, reporting on two key events. The Compensation Committee of the Board of Directors approved the fiscal year 2014 performance criteria for executive bonuses, which will be based on pre-tax income and operational targets relevant to each executive's role. Individual bonus amounts are capped and will be recommended by the CEO, subject to committee approval. Additionally, the Board of Directors declared a quarterly cash dividend of $0.31 per share, payable on November 29, 2013, to shareholders of record on November 15, 2013. These announcements provide insight into the company's approach to executive compensation and its commitment to returning capital to shareholders.
Key Highlights
- 1Fiscal 2014 executive bonus criteria approved, linking pay to pre-tax income and operational performance.
- 2Maximum bonus amount for executives is $200,000, dependent on individual roles and performance.
- 3CEO will recommend bonus payouts, subject to Compensation Committee approval.
- 4Quarterly cash dividend of $0.31 per share declared.
- 5Dividend record date set for November 15, 2013.
- 6Dividend payment date set for November 29, 2013.
Frequently Asked Questions
The fiscal 2014 executive bonus plan is based on achieving specified targets related to pre-tax income and operational characteristics relevant to each executive's area of responsibility. The maximum bonus for any individual executive is $200,000.
The Chief Executive Officer will recommend bonus amounts to the Compensation Committee based on the approved performance criteria. The Committee will provide further approval.
Costco declared a quarterly cash dividend of $0.31 per share. This dividend is payable on November 29, 2013, to shareholders who were on record as of the close of business on November 15, 2013.