05-24-2006, 01:26 AM
http://en.wikipedia.org/wiki/Costco
Costco is noted for providing full benefits and comparatively generous compensation to its employees. For instance, a cashier with four years of experience can earn more than $40,000 with full benefits, including medical, dental, Rx, disability, and life, and is even entitled to participate in a 401k program and purchase stock options. Part-time employees hired after 2005 (approx. 50% of the store based workforce) and full-time employees are charged different amounts for benefits, and they lose all the benefits if they get laid off.[citation needed]
These perks are the highest in the industry and especially surprising considering Costco's price-centric sales strategy (similar to Wal-Mart's, a company criticized for its low pay and refusal to offer benefits to some employees). A recent estimate (New York Times, July 17, 2005) puts Costco's average pay at $17 per hour, or 42% higher than Wal-Mart-owned Sam's Club. Wall Street analyst Bill Dreher of Deutsche Bank criticized Mr. Sinegal in 2004, saying "it's better to be an employee or a customer than a shareholder." Sinegal counters that good wages and benefits more than pay for themselves by holding down employee turnover, reducing employee theft and by appealing to a certain percentage of affluent customers who appreciate that the low prices do not come at the workers' expense.
Also from http://moneycentral.msn.com/content/P110762.asp
Look at Costco Wholesale (COST, news, msgs), says Hodgson. The retailer’s stock is up 60% in the past two years. But Costco CEO James Sinegal earns $558,000 a year -- which looks like pocket change compared to the multiple millions of dollars our top-paid CEOs get. Sinegal is sitting on $22.6 million worth of exercisable options, which he has accumulated over more than a decade as CEO.
"I feel like I have been well rewarded," says Sinegal. He thinks keeping a lid on CEO base salary and bonus sends a signal that all employees are important. "If the CEO of a company is paid 10 to 12 times the highest hourly rate, that is probably pretty fair."
You can decide how important those things are to you. I am a member of Costco. I would never join Sams.
BT
Costco is noted for providing full benefits and comparatively generous compensation to its employees. For instance, a cashier with four years of experience can earn more than $40,000 with full benefits, including medical, dental, Rx, disability, and life, and is even entitled to participate in a 401k program and purchase stock options. Part-time employees hired after 2005 (approx. 50% of the store based workforce) and full-time employees are charged different amounts for benefits, and they lose all the benefits if they get laid off.[citation needed]
These perks are the highest in the industry and especially surprising considering Costco's price-centric sales strategy (similar to Wal-Mart's, a company criticized for its low pay and refusal to offer benefits to some employees). A recent estimate (New York Times, July 17, 2005) puts Costco's average pay at $17 per hour, or 42% higher than Wal-Mart-owned Sam's Club. Wall Street analyst Bill Dreher of Deutsche Bank criticized Mr. Sinegal in 2004, saying "it's better to be an employee or a customer than a shareholder." Sinegal counters that good wages and benefits more than pay for themselves by holding down employee turnover, reducing employee theft and by appealing to a certain percentage of affluent customers who appreciate that the low prices do not come at the workers' expense.
Also from http://moneycentral.msn.com/content/P110762.asp
Look at Costco Wholesale (COST, news, msgs), says Hodgson. The retailer’s stock is up 60% in the past two years. But Costco CEO James Sinegal earns $558,000 a year -- which looks like pocket change compared to the multiple millions of dollars our top-paid CEOs get. Sinegal is sitting on $22.6 million worth of exercisable options, which he has accumulated over more than a decade as CEO.
"I feel like I have been well rewarded," says Sinegal. He thinks keeping a lid on CEO base salary and bonus sends a signal that all employees are important. "If the CEO of a company is paid 10 to 12 times the highest hourly rate, that is probably pretty fair."
You can decide how important those things are to you. I am a member of Costco. I would never join Sams.
BT