- Costco’s new CEO received a total compensation package worth $12.2 million this year.
- Vachris started his career as a forklift driver over 40 years ago, and became CEO in January.
- Costco has 328,000 worldwide employees, and the median worker earned $47,092.
Costco’s CEO appears to have had his best financial year yet.
Since becoming CEO of the wholesale club in January, Ron Vachris received a compensation package worth more than $12.2 million in the 2024 fiscal year, according to the company’s latest proxy statement filed Wednesday with the SEC.
The package includes a base salary of nearly $1.1 million, plus stock awards of just over $10.5 million and other perks and compensation (such as a complimentary $120 Executive Membership to Costco).
Meanwhile, of Costco’s 328,000 worldwide employees, the median worker earned $47,092, giving Vachris a CEO pay ratio of 262.
His compensation and pay ratio are well below those of his predecessor, Craig Jelinek, who made $16.8 million in his final year as CEO, or 336 times that of the median worker.
Median compensation packages for S&P 500 CEOs rose to $15.5 million in 2023, up 12.4% from the prior year, according to data and analytics firm ISS-Corporate. Among those firms, the CEO pay ratio was 312 times the median employee in 2023.
Among retailers, the ratio tends to be larger, as the industry’s workforce includes a relatively larger share of part-time and seasonal workers who are required by SEC rules to be included in the calculation.
For example, Walmart CEO Doug McMillon received $26.9 million in total compensation in the last fiscal year or 976 times the $27,642 compensation that the median Walmart employee earned in the period. Target CEO Brian Cornell’s most recent pay disclosure showed he received $19.2 million in 2023, or 719 times the median employee’s $26,696 annual earnings.
Vachris started his career as a forklift driver over 40 years ago with Costco’s predecessor Price Club, rising through the ranks to become CEO earlier this year.
He is the third CEO in the company’s history.
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