Report: Costco CEO, CFO Won’t Get Bonuses
New York City, Costco CEO Jim Sinegal and CFO Richard Galanti won’t get bonuses this year because of “imprecisions” with the company’s stock option granting process, according to the Puget Sound Business Journal. According to a filing with the Securities and Exchange Commission (SEC), Sinegal was eligible for a bonus of $200,000 and Galanti was eligible for an $82,000 bonus.
“A special committee of the board of directors concluded that there were imprecisions in the company’s stock option granting process and that these two officers had responsibility for administering that process,” the retailer wrote in the SEC filing. “Because of their responsibilities for the imprecisions in the process and the resulting need for the board inquiry, these officers suggested that they not receive bonuses for fiscal 2006,” the retailer wrote in the SEC filing.”
Department of Defense Awards Royal Ahold Unit Deal
Washington D.C., The U.S. Defense Logistics Agency on Tuesday awarded a food distribution contract worth about $38.8 million to U.S. Foodservice, a subsidiary of Dutch firm Royal Ahold NV. The Army and Air Force will use services under the one-year pact, which was awarded to U.S. Foodservice in Fairburn, Ga.
More Young Shoppers Head to Department Stores
Los Angeles, The National Retail Federation’s (NRF) 2006 holiday season survey has found that more college-aged shoppers will be hitting department stores this year to do their shopping. The Holiday Consumer Intentions and Actions Survey found that 79% of shoppers ages 18 to 24 planned to shop at department stores during the holidays, up from nearly 73% last year.
While nearly three-quarters of American consumers plan to shop at discount stores this holiday, nearly 62% are headed to department stores, the study found, with 48% shopping at specialty stores and 47% looking to the Web for their gifts.
The average consumer plans to spend $791.10 on presents this holiday, up from $738.11 in 2005, according to the study, an increase boosted by lower gas prices and rising consumer confidence.