Ron M. Vachris
Also at Costco Wholesale Corp
About
Ron M. Vachris has built a distinguished career marked by his unwavering commitment and gradual progression at COST, beginning his journey in 1980 as a forklift driver and steadily advancing through multiple key roles over the past 40+ years.
His professional path includes pivotal leadership positions such as Senior Vice President, General Manager of the Northwest Region, Senior Vice President of Real Estate Development, and Executive Vice President of Merchandising. Each role allowed him to develop a deep operational and strategic understanding of the business, eventually positioning him as President and COO before his promotion to President and CEO.
Now serving as the head of the organization since January 1, 2024, he leverages decades of hands-on experience and expertise to guide the company's strategic direction and operational excellence. His journey, characterized by dedication and continuous growth, exemplifies the value of long-term commitment to organizational success.
$COST Performance Under Ron M. Vachris
Past Roles
| Organization | Role | Date Range | Details |
|---|---|---|---|
| Costco | President and Chief Operating Officer | February 2022 - December 2023 | Held position prior to becoming CEO |
| Costco | Executive Vice President of Merchandising | June 2016 - January 2022 | Senior merchandising role |
| Costco | Senior Vice President of Real Estate Development | August 2015 - June 2016 | |
| Costco | Senior Vice President, General Manager of the Northwest Region | 2010 - July 2015 | |
| Costco | Various Management Positions in Warehouse Operations | 28 years prior to 2010 | Multiple roles over 28 years in warehouse operations |
Fixed Compensation
| Component Name | Amount | Payment Schedule | Additional Details |
|---|---|---|---|
| Annual Base Salary | $1,078,077 | Annual | Fixed base salary for 2024 |
| Deferred Compensation Match | $5,000 | Annual | Part of fixed compensation |
| 401(k) Matching Contribution | $500 | Annual | Fixed component for retirement savings |
| 401(k) Discretionary Contribution | $29,700 | Annual | Discretionary retirement plan contribution |
| Executive Life Insurance | $3,653 | Annual | Executive life insurance benefit |
| Long-Term Disability Premiums | $10,624 | Annual | Premiums for long-term disability coverage |
| Tax Gross-Up | $6,567 | Annual | Compensation tax gross-up |
| Other Compensation | $120 | Annual | Includes free executive membership card |
Performance Compensation
Performance-Based RSUs
| Metric | Value | Details |
|---|---|---|
| Net Sales Growth Target | 3% | Increase over fiscal 2023, adjusted for currency effects and one less week in fiscal 2024 |
| Pre-Tax Income Growth Target | 7% | Increase over fiscal 2023, adjusted for currency effects and one less week in fiscal 2024 |
| Grant Date | October 22, 2023 | Date when the RSUs were granted |
| Grant Date Fair Value | $10,592,029 | Fair value of the RSU grant as of the grant date |
| Number of RSUs Granted | 18,809 | Performance-based RSUs awarded |
| Vesting Schedule | 20% annually over 5 years | Vesting begins on October 22, 2024 and continues annually |
| Adjustments | Special dividend adjustment | Increased share count to preserve award value |
Bonus Components
| Metric | Target/Actual Value | Details |
|---|---|---|
| Pre-Tax Income | Target: $9.6B, Actual: $9.8B (102%) | Achieved bonus payout of $231,000 based on performance relative to target |
| Net Sales | Target: $253.8B, Actual: $250.4B (98.7%) | Achieved bonus payout of $110,000 ; performance slightly below target |
| Environmental & Social Objectives | Met | Bonus payout of $93,333 when quantitative performance metrics for diversity, equity, inclusion, and resource consumption are met |
| Bonus Payment Range | 0% to 120% | Potential bonus scaled based on achievement levels |