Ron M. Vachris

President and CEO at COSTCO WHOLESALE CORP /NEW

Board

Since January 1, 2024

Age

59 years

Tenure

Joined COST in 1980 as a forklift driver and advanced through roles including Senior Vice President, General Manager of the Northwest Region, Senior Vice President of Real Estate Development, Executive Vice President of Merchandising, and President and COO before becoming President and CEO on January 1, 2024.

Also at COSTCO WHOLESALE CORP /NEW

Caton Frates

EVP, COO, Southwest Division

CEA

Claudine E. Adamo

EVP, Merchandising

Gary Millerchip

EVP, Chief Financial Officer

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

Data from FY 2024

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

Data from FY 2024

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