Ron Vachris, who became Costco's CEO in January, received a compensation package of $12.2 million for the 2024 fiscal year, according to the company's recent SEC filing. This package breaks down to a base salary of $1.1 million, stock awards of $10.5 million, and additional perks including a complimentary Costco Executive Membership.
The executive's pay ratio stands at 262 to 1, meaning he earns 262 times more than Costco's median worker, who makes $47,092 annually. This ratio is notably lower than his predecessor Craig Jelinek's 336-to-1 ratio and below the average for S&P 500 CEOs, which sits at 312 to 1.
Vachris's career trajectory is particularly noteworthy. Starting as a forklift driver over four decades ago with Price Club (Costco's predecessor), he has climbed through the company's ranks to become only the third CEO in Costco's history.
In comparison to other major retailers, Costco's CEO compensation appears relatively modest. Walmart's Doug McMillon earned $26.9 million (976 times the median employee's wage), while Target's Brian Cornell received $19.2 million (719 times the median employee's earnings).
The retail industry typically has higher CEO-to-worker pay ratios due to a significant number of part-time and seasonal workers included in compensation calculations. However, Vachris's package demonstrates a more restrained approach to executive compensation compared to his retail industry peers.