James Sinegal

James Sinegal
Nationality	American
Occupation	Corporate executive

James D. Sinegal (born January 1, 1936) is co-founder and CEO of Costco, an international retail chain.

Early life and education

He was born January 1, 1936 into a Catholic working-class family in Pittsburgh, Pennsylvania and placed in a orphanage by his mother.. When he was 11, she adopted Sinegal and Giuseppe Siniscalli (later changed to Sinegal) became his step father. Senigal's father was named Wright but he took his step-fathers last name instead. He attended Helix High School in La Mesa, California and earned an AA at San Diego City College in 1955. He earned a BA from San Diego State University in(1959). {fact}}

Career

After he started as a bagger at FedMart in 1954 he found he loved retailing. At FedMart, he worked his way up to executive vice president in charge of merchandising and operations. He was a vice president of merchandising for Builders Emporium 1977-1978, and an executive vice president for the Price Company 1978-1979. From 1979-1983 he worked with Sinegal/Chamberlain and Associates, a company which acted as a broker and sales representative for food and non-food products. Together with Seattle retailer Jeff Brotman, he co-founded Costco and from 1983 he has been President and CEO of Costco. His innovations made Costco the first warehouse club to include fresh food, eye-care clinics, pharmacies, and gas stations.

He was a protege of Sol Price, who pioneered the concept of the warehouse store that sells high volumes of a small variety of goods to members only. Sinegal is known for a benevolent style of management that offers employees high benefits and rewards.

In an interview published in the Houston Chronicle on July 17, 2005, he told Steven Greenhouse that he was not interested in Wall Street analysts who took issue with his care for employees and customers rather than happier shareholders. Investors might want higher earnings but Sinegal stated “We want to build a company that will still be here 50 and 60 years from now." A favorite saying of his is “you have to take the shit with the sugar”. Investors who bought $10,000 of Costco stock in 1992 had $43,564 ten years later, a return of 354% (or 15.855% annually).

Brotman was an ownership group that committed to investing $150 million of a $300 million renovation of Key Arena, in Seattle and to purchase the Seattle SuperSonics sports team.

On February 17, 2012, President Obama had a private luncheon that had cost $17,900 per person at Sinegal's house with about 60 other people. It was a fundraiser for President Obama's campaign for the 2012 presidential election.

In 2009, Mr. Sinegal was considered one of "The TopGun CEOs" by Brendan Wood International, an advisory agency.

Compensation

According to documentation provided by Costco Wholesale Corporation, in fiscal year 2007 Sinegal earned $350,000 in base pay, with additional funds coming from bonuses, stock/option awards and other compensations, totaling $2,981,202. In 2008, he earned a total compensation of $3,787,280, which included a base salary of $350,000, a cash bonus of $80,000, and stocks granted of $3,290,150. In 2009, he earned a total compensation of $2,734,276, which included a base salary of $350,000, a cash bonus of $75,000, stocks granted of $2,230,700, and other compensation totaling $78,576.

Personal life

Sinegal and his wife, Janet, have three children.

Suggested Reading

• Biography Resource Center Online 2007.
• California Marriage Index 1960-1969 page 7,017.
• International Directory of Business Biographies. 2005.
• ”James Sinegal, Costco, The Bargain Hunter” Business Week, September 23, 2002.