8-KLeadership ChangesExhibits & Filings

COSTCO WHOLESALE CORP /NEW 8-K Report, Executive Changes (Nov 3, 2016)

Filed November 3, 2016For Securities:COST

Summary

Costco Wholesale Corporation (COST) filed an 8-K on November 2, 2016, reporting on the Compensation Committee's approval of the fiscal year 2017 criteria for executive bonuses. This plan outlines the framework for how key executives, including the CEO and Chairman, can earn performance-based bonuses. The bonuses are contingent upon achieving specific targets related to pre-tax income and operational metrics pertinent to each executive's role. The bonus structure allows for individual awards up to $200,000. The President and CEO will recommend bonus amounts based on these established criteria, subject to final approval by the Compensation Committee. This disclosure provides transparency into the company's executive compensation strategy for the upcoming fiscal year, directly linking executive rewards to financial and operational performance.

Key Highlights

  • 1Costco's Compensation Committee approved the fiscal year 2017 executive bonus criteria on November 2, 2016.
  • 2Executive officers, including the CEO and Chairman, are eligible for bonuses under the new plan.
  • 3Bonus amounts are capped at $200,000 per individual, depending on specific circumstances.
  • 4Eligibility and bonus size are tied to the achievement of defined targets.
  • 5Performance targets include pre-tax income goals.
  • 6Operational characteristics relevant to each executive's responsibilities are also performance metrics.
  • 7The President/CEO will recommend bonus awards, with final approval by the Compensation Committee.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about the Compensation Committee's approval of the fiscal year 2017 executive bonus criteria, outlining how executive bonuses will be determined based on performance.

The key performance metrics include achieving specified targets for pre-tax income and operational characteristics relevant to each executive's area of responsibility.

Yes, the criteria state that executive officers are eligible to receive bonuses up to $200,000, depending on the individual and their performance against the set targets.

The President/Chief Executive Officer recommends the bonus amounts based on the approved criteria, and these recommendations are subject to further approval by the Compensation Committee of the Board of Directors.