Costco Wholesale Corporation Executive Bonus Plan for Fiscal Year 2023
Costco Wholesale Corporation's Executive Bonus Plan for fiscal year 2023 outlines bonus eligibility and criteria for executive officers, including the CEO and President. Bonuses are based on achieving specific sales and pre-tax income targets, as well as meeting environmental and social objectives. The maximum bonus amounts vary by position, with the CEO eligible for up to $700,000, the President up to $464,000, and other executive officers up to $232,000. Final bonus payments require Compensation Committee approval, and recipients must be employed at the time bonuses are paid in November.
Exhibit 10.1
Costco Wholesale Corporation
Executive Bonus Plan
For fiscal year 2023, executive officers other than the Chief Executive Officer and the President are eligible for a bonus of up to approximately $232,000. This amount includes $80,000 based on the achievement of specified targets relating to sales and $80,000 based on the achievement of specified targets relating to pre-tax income. 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. Up to $40,000 can be earned relating to environmental and social objectives: $24,000 relating to achievement of quantitative performance metrics (including metrics concerning diversity equity and inclusion, resource consumption, and other emissions and environmental-related areas); and up to $16,000 based on a discretionary assessment by the Chief Executive Officer of the officers’ environmental and social achievements (including, without limitation, progress in controlling emissions).
For fiscal year 2023, the Chief Executive Officer is eligible to receive a bonus of up to $700,000. This amount includes $250,000 based on the achievement of specified targets relating to sales and $250,000 based on the achievement of specified targets relating to pre-tax income. 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. Up to $100,000 can be earned relating to environmental and social objectives for achievement of quantitative performance metrics (including metrics concerning diversity equity and inclusion, resource consumption, and other emissions and environmental-related areas).
For fiscal 2023, the President is eligible to receive a bonus of up to $464,000. This amount includes $160,000 based on the achievement of specified targets relating to sales and $160,000 based on the achievement of specified targets relating to pre-tax income. 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. In addition, up to $80,000 can be earned relating to environmental and social objectives for achievement of quantitative performance metrics (as discussed above for executive officers).
The final bonus amounts are subject to the approval of the Compensation Committee. To be eligible for the annual bonus, an individual must be employed by the Company at the time bonus checks are issued (November).
