Costco CEO compensation drops in 2009

AP News
Posted: Dec 21, 2009 3:33 PM

Costco Wholesale Corp.'s president and CEO, James Sinegal, received compensation valued at $2.7 million for the 2009 fiscal year, according to a proxy statement filed Friday with the Securities and Exchange Commission.

That represents a 28 percent decrease in calculated payment from the prior year.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.

According to the filing, Sinegal was awarded a $350,000 salary, unchanged from the prior year. His bonus dropped more than 6 percent to $75,000. And he had no above-market earnings or compensation, which accounted for most of the decline.

The Issaquah, Wash.-based warehouse club operator also granted Sinegal restricted stock and option awards that had an estimated value of nearly $2.2 million on the days they were awarded. And he received $78,576 in other perks, up from last year, including 401k contributions, insurance premiums and a car allowance.

Costco's performance, like many retailers, slumped as consumers cut back on spending. But the warehouse club operator has been one of the stronger retailers during the recession because of its focus on lower prices and everyday necessities.

The company reported that its profit fell 15 percent to $1.09 billion, or $2.47 per share, for the full year, and its revenue dipped 2 percent to $71.42 billion.

Shares of Costco rose 86 cents to $59.29 in afternoon trading Monday.

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