Costco Wholesale Approves Fiscal 2027 Executive Bonus Plan

Summary of Filing

On October 16, 2026, Costco Wholesale Corporation filed a Form 8-K under Item 5.02 (Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers) to disclose the approval of its Fiscal 2027 Executive Bonus Plan.

Key Terms of the Fiscal 2027 Executive Bonus Plan

• Approval Date: October 13, 2026.
• Governing Committees: Approved by the Compensation Committee of the Board of Directors, with the environmental and social performance criteria also approved by the Nominating and Governance Committee.
• Chief Executive Officer Structure:
  • Base Bonus Eligibility: $1,200,000.
  • Financial Metrics: $500,000 based on sales targets and $500,000 based on pre-tax income targets. Payouts can range from 0% to 120% of target depending on achievement.
  • ESG Metrics: Up to $200,000 based on quantitative environmental and social performance objectives (including human capital and environmental initiatives).
• Other Executive Officers Structure:
  • Base Bonus Eligibility: $400,000.
  • Financial Metrics: $160,000 based on sales targets and $160,000 based on pre-tax income targets (payout range: 0% to 120%).
  • ESG Metrics: Up to $80,000 based on quantitative environmental and social performance goals.
• Conditions:
  • Targets exclude foreign exchange impacts and are subject to customary accounting adjustments.
  • Participants must remain employed with Costco on October 22, 2027, to be eligible for payout.

Market and Trading Significance

• Significance: Low.
• This filing reflects standard annual compensation governance and does not involve material corporate restructuring, unexpected executive departures, or direct open-market transactions.