They cite benefits from sloppy record-keeping involving stock options
By CRAIG HARRISP-I REPORTER
Costco Wholesale Corp. Chief Executive Jim Sinegal and Chief Financial Officer Richard Galanti are voluntarily forfeiting their annual bonuses after the company disclosed last week that they benefited from sloppy record-keeping on prior stock-option practices.
Sinegal is giving up $200,000, while Galanti is rejecting an $82,000 bonus, according to a Securities and Exchange Commission filing made public Thursday.
This sort of behavior reinforces why I bought the stock. Because the CEO and CFO benefitted from some poor record keeping -- not fraud, but just not detailed enough -- they are voluntarily forgoing bonuses. Sure, it's just a rounding error in their larger finanacial lives, but how many CxOs will do this?