Costco Equity FAQ

Vesting schedules vary by role at Costco. Executives typically have a 5-year vesting schedule with 20% vesting annually, while non-employee directors vest over 3 years (approximately one-third each year). Some executive RSUs also include a 1-year performance-vesting requirement before the 5-year time-vesting period begins.

Costco's ESPP offers a 15% discount on the stock price. The plan also includes a lookback feature, which means you can purchase shares at the lower price between the offering date and purchase date, maximizing your potential discount.

You can contribute up to $25,000 per year to Costco's ESPP. This is the annual maximum contribution limit under the plan.

Based on historical grant patterns, Costco RSUs commonly vest on October 22nd annually. However, your specific vesting dates will depend on when your grant was issued, so check your individual grant agreement for exact dates.

While RSUs convert to shares you can sell upon vesting, you may be subject to insider trading restrictions and blackout periods. Costco also prohibits officers and directors from hedging or pledging company securities, so review your company's trading policies before selling.

Costco's default tax withholding rate for RSU vesting is 22%. However, this may not be sufficient if you're in a higher tax bracket, and you can adjust your withholding rate. Consider consulting a tax advisor to ensure you're withholding enough to cover your actual tax liability.

Yes, Costco provides significant accelerated vesting benefits for employees with long service records. Employees with 25, 30, or 35+ years of service may be eligible for accelerated RSU vesting, which is a unique feature that rewards employee loyalty.

Costco stock options have a 10-year expiration period from the grant date. However, the specific post-termination exercise window details aren't clearly specified, so you should consult your plan documents or HR to understand how long you have to exercise vested options after leaving the company.