Costco CEO Craig Jelinek Wraps Up Tenure With Robust $16.8 M Package

In his farewell performance as Costco’s CEO, Craig Jelinek, at 71, concluded his tenure with a notable financial crescendo. Jelinek’s compensation for 2023 stands at $16.8 million. This figure is comprised of a base salary of $1.1 million, stock awards nearing $15 million, and additional perks, as detailed in the company’s recent proxy filings. This marks a substantial increase compared to his total compensations of $9.9 million in 2022 and $8.8 million in 2021, according to Business Insider.

Within the vast workforce of 289,000 Costco employees, the median compensation, encompassing wages and benefits, is reported at $50,202. This figure equates to a CEO pay ratio of 336 times the median employee pay, signifying the considerable income disparity within the company. It is noteworthy, however, that the median worker has witnessed a substantial raise from the previous year’s compensation of $45,450, according to the outlet.

Jelinek’s compensation, while commendable, falls below the figures reported for other retail giants’ CEOs, such as Walmart’s Doug McMillon, with a total of $25.3 million, and Target’s Brian Cornell, whose total compensation amounts to $17.6 million, the outlet reports.

Costco’s reporting practices offer transparency beyond regulatory requirements. While the SEC mandates public companies to consider part-time workers in determining median employee compensation, companies with a significant part-time workforce argue that this skews the overall compensation portrayal. In response, Costco voluntarily discloses a supplementary calculation focusing solely on full-time employees, constituting approximately 60% of its workforce. The median compensation for full-time employees stands at $66,783.

As Jelinek prepares to retire on January 1, he will pass the CEO baton to Ron Vachris, who boasts over 40 years with the company, starting as a forklift driver and ascending to the position of president. Vachris is set to assume the role of CEO with a total compensation package valued at $11.5 million. Jelinek, is only the second person to helm Costco in its 40-year history.

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