Costco's Sinegal Pays Back $200K for Erroneous Option Grant
ISSAQUAH, Wash. - Costco Wholesale Corp. c.e.o. Jim Sinegal paid back $200,000 to the company in connection with a misdated option grant he received 10 years ago, the chain said in an SEC filing yesterday.
Last year, an independent review had identified an imprecision in the company's grant process for April 1997 in which both the c.e.o. and the chairman received one grant by error that may have benefited each by up to $200,000.
Earlier this month, Costco said it was served with a grand jury subpoena from the U.S. Attorney's Office in the Western District of Washington seeking documents and information about the company's option-granting practices.
On March 26, Sinegal voluntarily paid $200,000 to Costco to avoid any question about whether he personally benefited from the original measurement date, the company said.
Last year, an independent review had identified an imprecision in the company's grant process for April 1997 in which both the c.e.o. and the chairman received one grant by error that may have benefited each by up to $200,000.
Earlier this month, Costco said it was served with a grand jury subpoena from the U.S. Attorney's Office in the Western District of Washington seeking documents and information about the company's option-granting practices.
On March 26, Sinegal voluntarily paid $200,000 to Costco to avoid any question about whether he personally benefited from the original measurement date, the company said.