Wednesday, May 03, 2006

Singing the Praises of Jim Sinegal - Costco

This weeks Time Magazine lists their 100 people who shape our world. Jim Sinegal is listed under 'builders and titans'.

Mr. Sinegal is the CEO of Costco. He makes $350,000 a year not including a modest bonus and stock options.

Costco is one of the U.S.'s largest companies, with 118,800 workers, 473 warehouse-club stores and sales of $51.9 billion in its most recent fiscal year. Costco's stock has trounced archrival Wal-Mart's in recent years. Perhaps most unusual, Sinegal has resisted Wall Street pressure to become a less generous employer; store workers earn an average of $17 an hour and pay just 9% of the cost of health insurance, a rich package in the penny-pinching retail industry. "Our attitude is that if you hire good people and pay them a fair wage, then good things will happen for the company," says Sinegal, who remains hale at 70.

If you Google 'Jim Sinegal' you will find that many others also sing his praises.

Mr. Sinegal has said "We pay much better than Wal-Mart. That's not altruism. It's good business." A full time clerk or warehouse worker at Costco makes $41,000 a year with great health benefits. Yep. Wal-Mart makes twice as much profit as Costco but Mr. Sinegal believes in making a 'profit' not a killing and to invest in his workers.

Who would have thought you can make money in retail AND provide for your employees?

1 comment:

Anonymous said...

Jim is a top notch man and a great boss. He is an absolutely amazing person and an idol of mine. Enough said.