Costco Wholesale Corporation Executive Bonus Plan for Fiscal Year 2019
Costco Wholesale Corporation's Executive Bonus Plan for fiscal year 2019 allows eligible executive officers to earn a bonus of up to approximately $200,000, subject to approval by the Compensation Committee. Half of the bonus is based on the company meeting its pre-tax income goal, while the other half depends on individual performance goals and managerial discretion. Eligibility requires the executive to be employed by Costco when bonus checks are issued in November.
Exhibit 10.1
Costco Wholesale Corporation
Executive Bonus Plan
For fiscal year 2019, executive officers are, depending upon the individual, eligible for a bonus award of up to approximately $200,000. 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 Company’s internal budget.
The remaining 50% is determined by goals relevant to the executive officer’s area of responsibility and a discretionary component determined by the individual’s 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.
To be eligible for the annual bonus, an individual must still be employed by the Company at the time bonus checks are issued (November).
