# CEO Jim Sinegal earns a mere $350,000 per year, with a bonus of as much as $200,000 (and possibly some stock). He aims to earn no more than three or four times what his highest-paid store managers earn. "Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong," Sinegal has said.How much did the Wal-Mart CEO take home last year? How many hundreds of times was that above the floor level grunt?
# Costco pays its employees relatively lavishly. Workers reportedly start at $10 or more per hour, considerably more than elsewhere, where minimum wage is the usual starting point. According to a 2008 SmartMoney article, average pay topped $18 an hour, fully 68% more than employees earned at Wal-Mart's (NYSE: WMT) Sam's Club, and more than BJ's Wholesale (NYSE: BJ) employees earn, too. Roughly 85% of Costco's employees had health insurance last year (at fairly cheap rates), versus only about half at Wal-Mart and Target (NYSE: TGT). All this leads to low turnover, saving the company money on recruiting and training new employees, and helping Sinegal argue that it's simply a rational business practice.
I shop at CostCo because the prices are good, the stores are well cared for, the employees are well cared for and it is a company I can feel good about supporting. How many of you shopping at Wallyworld can say the same thing?