Fiscal 2020 Executive Bonus Plan
Costco Wholesale Corporation
Executive Bonus Plan
For fiscal year 2021, executive officers other than the Chief Executive Officer are eligible for a bonus of up to approximately $80,000. The final bonus amounts are subject to the approval of the Compensation Committee.
Eligibility for up to 50% of the bonus amount is determined by whether the Company has met its pre-tax income goal for the year, as indicated in the Companys internal budget.
The remaining 50% is determined by goals relevant to the executive officers area of responsibility and a discretionary component determined by the individuals manager:
For those whose responsibilities are operational, the goals relate to sales, controllable expense, shrink, and pre-tax profit in their areas of responsibility.
For those whose responsibilities are primarily buying, the goals relate to sales and pre-shrink gross margin in their areas of responsibility.
For those whose responsibilities are staff functions, the goals relate to a combination of Company-wide operational and buying goals, in addition to qualitative factors relevant to their areas of responsibility.
For fiscal 2021, the Chief Executive Officer is eligible to receive a bonus with a target amount of $400,000, up to 50% based on the achievement of specified targets relating to pre-tax income and up to 50% based on the achievement of specified targets relating to sales. The potential payment attributable to each of these performance goals may be from zero to up to 120% of the award target amount based on the level of achievement of the goal.
To be eligible for the annual bonus, an individual must be employed by the Company at the time bonus checks are issued (November).