John Furner, 42, will assume the role of Sam’s Club CEO on Wednesday (Feb. 1) and the retail giant will pay him a base salary of $780,000 for this first year subject to an annual adjustment. Details of the contract were filed with the U.S. Securities and Exchange Commission on Jan. 27.
Furner’s contract also includes his eligibility for an annual cash incentive based on performance. The performance bonus will be 180% of his base salary, with a maximum possible payout of 225% of his salary. Furner will also be eligible to receive an annual equity award that typically consists of restricted stock and performance-based restricted stock units. The board agreed to award Furner 22,506 restricted shares of company stock which will vest on the third anniversary they are granted. He must remain employed with the company through that vesting day to be receive the benefit.
Craig Jelinek, who is set to become CEO of Costco Wholesale on January 1, will be paid an annual salary of $650,000 plus a bonus of up to $200,000, according to a securities filing Monday.
Start from the top and cut! A lot of the longtimers are shareholders, it's time to push a vote to cut the salary of the top if all we're going to do is follow what Costco does.