Company: COST
Filing Date: 2025-12-04
Form Type: DEF 14A
Source: 0000909832-25-000159
Chunk: 26

Company: COSTCO WHOLESALE CORP /NEW
Filing Date: 2025-12-04
Form: DEF 14A
Chunk 26
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 increase of 19% over the prior year, based on the closing share price at the time of grant. The Committee determined after the end of the fiscal year that the performance criteria were exceeded, and all of the performance-based RSUs granted to Mr. Vachris were earned. The Committee determined the increase to be warranted based on Mr. Vachris' performance and the level of CEO compensation at peer companies.

For fiscal 2025, the bonus was determined by the Committee in November 2024: (i) $250,000 of bonus eligibility was determined by the Company's attainment of its pre-tax income goal, which was exceeded in fiscal 2025 (the goal was $10.73 billion, on a generally accepted accounting principles basis; actual pre-tax income, adjusted for changes in foreign currencies based on budgeted rates, as provided for in the plan, was $10.87 billion); (ii) $250,000 of bonus eligibility was determined based on net sales (the goal was $271.02 billion; actual net sales, adjusted for changes in foreign currencies based on budgeted rates, as provided for in the plan, were $271.78 billion); and (iii) $100,000 of bonus eligibility was determined by environmental and social objectives for achievement of quantitative performance metrics, including environmental and human capital metrics. The potential payment attributable to the first two performance measures was from zero to up to 120%, based on the level of achievement. The potential payment attributable to the third performance measure was all or nothing, depending on whether a majority of the quantitative metrics was achieved. For fiscal 2025, the pre-tax income component of the bonus earned was $250,000, based on the Company's achieving 101.3% of the pre-tax profit target. The sales component of the bonus was $250,000, based on the Company's achieving 100.3% of the sales target. The quantitative environmental and social targets were met, entitling Mr. Vachris to $100,000.

Apart from the change-in-control provision in the Company’s equity plan applicable to all grantees and in the deferred compensation plan applicable to all participants (described below under “Potential Payments Upon Termination or Change-in-Control”), none of Mr. Vachris or any other employee has or had any change-in-control arrangement with the Company.

2025 Compensation of Other Named Executive Officers

The most significant component of compensation in fiscal 2025 was performance-based RSUs. Performance-based RSU