Much is made of Costco CEO Jim Sinegal only making $350,000 per year, much less than your average CEO of a public company, especially one that is Costco’s size.
The reality, though, is a bit different. Here’s what Sinegal will really make in 2008:
Costco Wholesale Corp.’s President and Chief Executive, James Sinegal, received compensation valued at $3.8 million for the 2008 fiscal year, according to a proxy statement filed Friday with the Securities and Exchange Commission.
That represents a 25 percent increase in calculated payment from the prior year.
Sinegal was awarded a $350,000 salary, an $80,000 bonus and $67,130 in other payments such as a vehicle allowance, life insurance and health care premiums.
The Issaquah, Wash.-based warehouse club operator also granted Sinegal restricted stock and option awards that had an estimated value of nearly $3.3 million on the days they were awarded.
Hey, he deserves it. He’s the driving force behind Costco keeping prices low, and the truth is that many CEOs of much less successful companies get compensated far beyond what Sinegal gets. Still, the much publicized $350,000 salary does not really tell the whole story. He’s still making a ton.