UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) April 28, 2006 NORDSTROM, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) WASHINGTON 001-15059 91-0515058 (STATE OR OTHER JURISDICTION (COMMISSION FILE (I.R.S. EMPLOYER OF INCORPORATION) NUMBER) IDENTIFICATION NO.) 1617 SIXTH AVENUE, SEATTLE, WASHINGTON 98101 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (206) 628-2111 INAPPLICABLE (FORMER NAME OR FORMER ADDRESS IF CHANGED SINCE LAST REPORT) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below): ___ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ___ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ___ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ___ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT The Compensation Committee of the Board of Directors of Nordstrom, Inc. (the "Compensation Committee") recently approved bonus goals, performance levels and award levels that may be earned during the fiscal year ending February 3, 2007 ("Fiscal Year 2006") under the Company's shareholder approved Executive Management Group Bonus Plan (the "Plan"). Under the Plan, bonus awards are paid only when performance goals are achieved. The bonus target and maximum payments are expressed as a percentage of base salary and the bonus goals vary by position depending on each participant's area of responsibility and influence. Fiscal Year 2006 bonus arrangements for the Company's Named Executive Officers were approved by the Compensation Committee as follows:
Name and Bonus Target Bonus Maximum Bonus Principal as a % of as a % of Bonus Measure Position Base Salary Base Salary Measures Weighting - -------------------------------------------------------------------------------------- Blake W. Nordstrom 100% 250.0% -Earnings before taxes/ 100.0% President Return on invested capital Peter E. Nordstrom 125% 312.5% -Earnings before taxes/ 75.0% Executive Vice Return on invested capital President -Full-Line Stores earnings before taxes 25.0% Erik B. Nordstrom 125% 312.5% -Earnings before taxes/ 75.0% Executive Vice Return on invested capital President -Full-Line Stores earnings before taxes 25.0% Michael G. Koppel 60% 150.0% -Earnings before taxes/ 75.0% Executive Vice Return on invested capital President -Oversight of the Company's Credit and Faconnable divisions 12.5% -Planning, budgeting and capital management 12.5% James R. O'Neal 60% 150.0% -Earnings before taxes 75.0% Executive Vice -Nordstrom Product Group gross 12.5% President margin return on investment and total expense -Nordstrom Product Group 12.5% design development and reduction in lead times SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NORDSTROM, INC. By: /s/ David L. Mackie ----------------------- David L. Mackie Vice President, Real Estate and Corporate Secretary Dated: May 2, 2006