Jim Sinegal takes pay cut in last year as Costco CEO
Jim Sinegal receives half of stock grants in fiscal 2011.
Seattle Times business reporter
Costco Wholesale CEO Jim Sinegal took a 38 percent pay cut in fiscal 2011, earning $2.2 million compared with $3.5 million a year earlier.
His salary has remained steady for years at $350,000, and his $198,400 bonus was about the same for the fiscal year that ended in August as it was the year before.
But his stock awards were down considerably, from $3 million to $1.6 million.
"Jim requested that his restricted stock award grant be cut in half," said Costco attorney John Sullivan.
That's in contrast to a stock grant increase for Craig Jelinek, who will become CEO after Sinegal retires Dec. 31, the day before his 76th birthday.
Jelinek, 59, received a 47 percent pay hike, to $3.3 million from $2.3 million a year earlier.
His salary was $649,999 — a dollar less than the board has decided to pay him when he becomes CEO — and his bonus was $99,200, only slightly higher than the year before.
But his stock awards soared, from $1.4 million to $2.5 million.
"[Stock grants] accelerate vesting in part when the 25-year anniversary is hit, and that occurred for Craig in the fiscal year, which caused an increase in the value," Sullivan said. "Craig also received an increase in his grant [from 25,000 to 40,000 restricted stock units] associated with his promotion to president and chief operating officer."
That promotion happened in early 2010.
After Sinegal retires, he will remain at the company for a year of transition. His salary for that year will total $100,000, and he will not be eligible for a bonus, the company said in an earlier filing.
Melissa Allison: 206-464-3312 or firstname.lastname@example.org. On Twitter @AllisonSeattle.