Costco's Steward

I watched 20/20 last night on ABC and saw Jim Sinegal Costco's CEO profiled. I had read articles about him before and have always admired the way he runs Costco. Costco pays their workers almost twice as much as competitors on average. Employees only contribute 8% of their pay towards health benefits when the industry average is 25%. But remarkably Costco is profitable and the employees generally like working there (surprise, surprise).

What is particularly amazing is that Costco, despite the higher wages has higher averages than Wal-Mart in revenue per employee. And much lower labor expenses and overhead per employee- 9% versus Wal-Mart- 17% (2005 Labor Research Association). A big part of this equation is that Jim Sinegal earns $350,000 in salary which is significantly less than other retail CEOs.

Sinegal says, "Our attitude is that if you hire good people and pay them a fair wage, then good things will happen for the company." Costco hires almost exclusively from within. Many of the Vice-Presidents in the company started out in the warehouses.

I don't know anything about Sinegal's commitment to faith in God. A quick Google search shows him active in Catholic causes and many liberal causes as well. He's a wealthy man due to the success of Costco's stock over the years. His share of the company exceeds $150 million. But from every measure it seems like he has been able to build that wealth while practicing the Golden Rule.

I wish there were more shining examples of a stewardship mentality in the boardrooms of corporations like Jim Sinegal. Greed is a destructive force in our economy and more importantly souls. Sinegal seems to understand that stewardship over the finances and lives that have been entrusted to you makes a huge difference in the long run. Stewardship is always the right path. "To whom much is given, much will be demanded." Luke 12:48.

For The Rewards That Await God-Honoring Stewards,

Ashley Hodge