Costco Wholesale Corporation Fiscal 2011 Executive Bonus Plan
Costco Wholesale Corporation's Fiscal 2011 Executive Bonus Plan outlines bonus eligibility for executive officers, excluding Jim Sinegal and Jeff Brotman. Executives may receive up to $100,000, with the final amount determined by Jim Sinegal and approved by the Compensation Committee. Half of the bonus depends on the company meeting its pre-tax income goal, while the other half is based on individual performance metrics and discretionary factors. Executives must be employed at the time bonuses are paid in November to qualify.
Exhibit 10.1
Costco Wholesale Corporation
Executive Bonus Plan
For fiscal year 2011, executive officers (other than Jim Sinegal and Jeff Brotman) are, depending upon the individual, eligible for a bonus award of up to approximately $100,000. The final bonus amount is determined by Jim Sinegal, 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, as well as a discretionary component not linked to any particular metric:
For those whose responsibilities are operational, the goals relate to sales, controllable expenses, shrink, and pre-tax profit in their areas of responsibility.
For those whose responsibilities are primarily buying, the goals relate to sales, gross margin, shrink, and inventory turns in their areas of responsibility.
For those who responsibilities combine operational and buying functions, the goals relate to a combination of those described in the prior two paragraphs.
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, the individual must still be employed by the Company at the time bonus checks are issued (November).
