Costco Wholesale Corporation filed a Form 8-K on October 13, 2026, disclosing the compensation criteria for its executive officers for fiscal year 2027. The report details the specific targets and potential payouts approved by the company’s Compensation Committee and Nominating and Governance Committee.
For executive officers other than the Chief Executive Officer, the base bonus eligibility is set at $400,000. This base amount is composed of two components: $160,000 tied to sales targets and another $160,000 tied to pre-tax income targets. The actual payout for each goal is determined by performance and can range from zero to 120% of the target amount. Additionally, these officers are eligible to earn an extra $80,000 based on environmental and social performance metrics, which include quantitative measures regarding human capital and environmental areas.
The Chief Executive Officer is eligible for a significantly higher base bonus of $1.2 million for fiscal 2027. This total is split into $500,000 for sales targets and $500,000 for pre-tax income targets, with the same performance range of zero to 120% of the target amount for each component. Like the other officers, the CEO may also earn an additional $200,000 based on environmental and social metrics.
The filing includes a copy of the Fiscal 2027 Executive Bonus Plan as Exhibit 10.1.
