r/PoursTea • u/Veshaad Timendi Causa Est Nescire • 4h ago
FinancialTea đľ Difference businesses, different practices, different outcomes.
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u/Accurate_Flower_4233 3h ago
My Maga coworker despises Costco and calls it a communist company.Â
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u/MrHodgeToo 3h ago
The irony is that bc Walmart workers donât receive livable wages most receive some form of govt subsidies to pay for housing, food and/or medical care. There are only two dots but MAGAts are just too dumb to connect them.
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u/remkelly 2h ago
And while the tax-payer has to subsidize Walmart workers the Walton family are worth approx $520 BILLION. But they will only pay about 4% tax-rate, due to the various tax mitigation strategies available to wealthy people. The other sickening thing is that many Walmart employees don't make enough to pay tax either. This family is screwing low wage workers and the middle-class in every way possible.
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u/Accurate_Flower_4233 3h ago
Our job is funded by the federal government so he's just a piece of shit.Â
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u/imahugemoron 21m ago
lol they loved Costco until they refused to comply with anti dei directives and sued the trump admin over illegal tariffs
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u/Most_Ad7837 3h ago
Excellent comparison and showing how treating employees correctly have an impact on the bottom line.
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u/Hindsight2O2O 3h ago
And knowing that is why i shop at Costco almost exclusively. I can't help having to buy food but i can choose who profits off me.
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u/NYCWartortle 3h ago
Iâve heard that Costco is a great place to work.
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u/NDeceptikonn 2h ago
But itâs so hard to get a job there.
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u/Ultimate_Decoy 1h ago
I mean with a 6% turnover rate is probably why. If you treat your employees well why would they wanna leave.
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u/TJATAW 2h ago
Ron Vachris, Costco CEO, received a compensation package worth more than $12.2 million in the 2024 fiscal year. Most of that is stock awards.
He got $13.93 million in 2025, of which $12.04 was in stock awards.
Chris Nicholas, Head of Sam's Club, got $12.7 million in 2024, & $11.44 million in 2025. The new head, Latriece Watkins, is expected to get $9.58 million in 2026. And for all of them, most of that is stock awards.
The real money for these folks is always in the form of stock.
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u/Cruzer2000 59m ago
Thank you for pointing this out. Thereâs no way Costco CEO only made $950k as suggested by the post.
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u/RandomNateDude 54m ago
Thank you for fact checking. I donât want to fall into the same trap as MAGA people: just blindly believing everything that agrees with my worldview.
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u/Defiant_Freedom_249 3h ago
It sucks shopping somewhere it seems like all the employees are clueless and don't know what they are doing.
Happier employees equal happier customers, more willing to return.
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u/IKeepGettingBanned85 3h ago
As a registered nurse... we are seriously underpaid. Republicans have fucked up the economy so badlyÂ
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u/bagelman5000 1h ago
Umm ok? Do you want to be a nurse at Costco or something? Not sure what that has to do with this post.
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u/SpiceEarl 39m ago
Depends where you live. On the West Coast (US), RNs make good money. Many who work for hospitals are unionized.
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u/Currencymanifest 3h ago edited 3h ago
This post is crazy disingenuous. Â
Latriece Watkins is ceo of Samâs Club us  and Christopher Nichols is ceo of Samâs Club /walmart international.  When chris was only over Sams his base salary was $894,000.  His base salary currently in the new role in charge of all Walmart and Samâs international is $1 million.  This is Chrisâs first year in the role but his projected total compensation is 11 to 12,000,000 with stock and bonus incentive. Â
Ronâs base salary for 2026 at Costco is 1.25 million. His total compensation including $12 million worth of stock awards was nearly 14,000,000. Â
So actually, the Costco guy makes more than the Walmart guy, the Walmart guy is over all of Walmart and Samâs international(not just Samâs)and thereâs actually a female named Latrice in the role theyâre trying to compare side-by-side.  Anyone that reads this garbage and doesnât plug it into AI/do your own research and see what is all actually going on is an ignorant fool.  Useful idiots of the Reddit echo chamber unite. đÂ
Lastly, anyone that has ever worked in a corporate or banking sort of environment, knows at the top of the food chain your salary from a base perspective is not very special. All of your compensation is based upon bonus structure on performance. The vast majority of that is paid out in stock and stock options, which can fluctuate wildly value wise. Â Also, this is all by design because no CEO on the planet would want a salary in cash of that size because of the tax liability. With total compensation hinged largely upon stock awards, you can borrow against those and avoid the tax liability while allowing the stock to grow.Â
This articl/post. took total compensation of one CEO and compared to base compensation of another!! Â once again again totally disingenuous and incorrect in every matrix.Â
If you are being lied to about something as stupid as this, what else are you being lied to about and you just read it and take it as fact. Knowledge is power and ignorance is a choice. Letâs do better.
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u/Agreeable_Work4668 1h ago
Couldn't have said better. Uneducated and the desperates love echo chambers that support their views.
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u/CleanSquash1735 2h ago
Fair criticism. OP could prove their point with a true apples to apples comparison inside of cherry picking data points and all the subjective wording. Also bugs me they say the âsame productsâ when Costco puts a lot into their Kirkland brand staples and product curation.
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u/ChrissieMoltisanti 3h ago
Costco is a way, way better employer for sure, but they donât sell all of the same products. Costco has built a following with their Kirkland brand that makes everything from pesto to golf clubs and is widely known as a quality, discount brand. Thatâs a big selling point for a lot of people.
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u/BeefCakeBilly 3h ago
Are we just making things up?
Ron vaChris made 14 million last year ,
Chris Nicolas made 12 million.
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u/SignificantLeader 3h ago
This is a real difference between an honest committed liberal and an honest committed conservative. The honest committed liberal shares. The conservative might donate to charity, but itâs not even close to the liberal dude.
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u/DJteejay04 2h ago
Market cap of Costco is 450 billion holding over 60% of the US warehouse market. Market cap of Samâs Club is 90 billion holding 30% of the US warehouse market.
Costco is a significantly larger company. That should probably be factored in
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u/Adventurous_Test_296 4h ago
WOW! Awful business practice to short your labor just overpay the boss.
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u/Umayummyone 3h ago
My daughter has worked for Costco for a long time. Probably will forever. They have a lot of lifers and for good reason.
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u/No-Independence-3060 2h ago
The Sam's in our area is the land of the walking dead. The only positive note is the gas prices. Far lower than Shell, ExxonMobil, and most stations.
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u/Vegetable-Lie-6063 2h ago
Gemini's response to "which company is which and is it true"?:
Which Company is Which? * Left Side: Costco â Shows Costco CEO Ron Vachris above a Costco store. * Right Side: Sam's Club â Shows Sam's Club President & CEO Chris Nicholas above a Sam's Club store. Is it True? (Fact-Check) The meme's main point about company culture differences is directionally accurate, but several of the specific numbersâparticularly regarding CEO payâare incorrect or out of date. 1. CEO Compensation: False * The Meme Claims: Costco's CEO made $950,000; Sam's Club's CEO made $25 million. * The Reality: Both CEOs earn total compensation packages in the low-to-mid eight figures. * Costco CEO (Ron Vachris): His total annual compensation (including stock awards) is around $12 million to $14 million. The $950k figure in the graphic comes from former CEO Jim Sinegal's base salary back in the 2000s, ignoring stock compensation. * Sam's Club CEO (Chris Nicholas): His total compensation is around $11 million to $12.5 million. The $25 million number belongs to the CEO of Sam's parent company, Walmart (Doug McMillon), not Sam's Club specifically. 2. Worker Pay & Benefits: Partially True * The Meme Claims: Costco pays $29/hr with full benefits; Sam's Club starts at $16 with minimal benefits. * The Reality: * Costco: Starting pay ranges from $19.50 to $20.00/hr, but because employees stay long-term, the overall average hourly pay is above $30/hr. Costco covers roughly 88â92% of health insurance premiums and offers bi-annual bonuses for tenured hourly workers. * Sam's Club: Starting pay is $16/hr, with average hourly pay sitting around $19/hr. Health coverage is available, but employee premium contributions are higher compared to Costco. 3. Turnover & Revenue per Employee: Mostly True * The Meme Claims: Costco turnover is 6%; Sam's Club is 44%. Costco earns $850k revenue per employee vs. Sam's $380k. * The Reality: * Costco's long-term employee turnover is exceptionally low for retail (around 6% to 8% for workers with over one year of tenure). Sam's Club/Walmart sits closer to the retail industry average of 35% to 45%. * Because Costco operates with higher sales volume per location and leaner store staffing relative to output, its revenue and profit per employee are substantially higher than Sam's Club.
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u/StabbingTabby 2h ago edited 2h ago
Except this bullshit infographic is directly comparing the starting wage at Sam's Club with late career wages at Costco.
It says while Sam's starts at $16/hr Costco pays $29/hr. In reality Costco starts at $20/hr and tops out around $32/hr.Â
https://www.cbsnews.com/news/costco-hourly-pay-raise-increase-workers-32-an-hour/
There's more than enough to prefer Costco without really fucking obvious and lazy lies like that.Â
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u/OpportunityWorking43 2h ago
Take issue with the statement that Costco and Samâs Club sell the same products to the same customers.
Actually a very different demographic.
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u/Dont_Ban_Me_Bros 53m ago
Costco sells non-Kirkland brands, but yeah they also sell a ton of Kirkland (aka Costco) brand goods. To say they sell the same things is pretty misleading.
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u/Material_Fisherman86 1h ago
The products are so so far away from being the same, clothes, food, furniture, very different. Electronics maybe, but almost all of our staples are Costco and I go to both relatively regularly.
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u/supercomic273 49m ago
Costco and Trader Joeâs canât get enough love. Only downside is the crowded parking lot!
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u/Embarrassed-House577 47m ago
WHAT THE FUCK IS THE POINT OF HAVING TWO OR MORE COLORS IN TEXT. FUCKING STOP
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u/Redtex 32m ago
Actually, as a member of both, I can reliably tell you that the products are not the same. Yes, they sell the same types of products, but the quality of Costco products are much higher than that of Sam's or BJ's and the customer service, not to mention general quality of the clubs, are not remotely the same. You are basically comparing a higher quality car to a yugo and saying they are the same.
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u/HEADSHOT_MASSIAH 1m ago
According to Google Gemini_
This viral social media image contains a mix of debunked executive compensation figures and mostly accurate operational data comparing Costco and Sam's Club. While it correctly highlights Costcoâs strategy of paying higher average wages to achieve exceptionally low employee turnover, it relies on highly distorted executive pay numbers. Here is a line-by-line verification of the claims:
- Executive Compensation: â Highly Inaccurate
⢠The Image Claims: One CEO took home $950,000 while the other took home $25 million. ⢠The Reality: The gap between the two CEOs is nowhere near this large. According to corporate financial disclosures: ⢠Costco CEO Ron Vachris: His total compensation package was nearly $14 million ($13.93 million). The $950,000 figure referenced online likely confuses his base salary structure or outdated metrics with his complete stock-heavy compensation plan. ⢠Sam's Club CEO Chris Nicholas: His total compensation sits around $11.4 million. The $25 million figure in the post actually mirrors the total package of Ernie Herrman, the CEO of TJX Companies (TJ Maxx), or represents top Walmart-level executive limits, rather than the Sam's Club head specifically.
- Hourly Wages & Benefits: â ď¸ Partially Accurate (Overstated / Understated)
⢠The Image Claims: Costco pays workers $29 an hour with full benefits. Samâs Club starts at $16 with mostly part-time hours and minimal benefits. ⢠The Reality: ⢠Costco Pay: While Costco's standard entry-level starting wage floors at $19.50 to $20.00 per hour, its average U.S. hourly wage climbs to roughly $32 per hour because over half of its workforce reaches the top of the scale ($31.90+ for senior clerks) through guaranteed tenure-based raises. ⢠Sam's Club Pay: Its base starting wage is accurately stated, generally fluctuating between $15 and $19 per hour depending on regional markets, with cashiers pulling in roughly $16.00 to $18.79.
- Employee Turnover & Revenue: Mostly Accurate
⢠The Image Claims: Costco's turnover is 6%, while Sam's Club loses 44% of its staff annually. Costco earns $850,000 in revenue per employee, vs. Sam's Club at $380,000. ⢠The Reality: These figures are well-supported by retail sector analysis. Costcoâs industry-defying 93% to 94% retention rate for employees past their first year means its actual turnover hovers remarkably close to 6%. Because of higher retention, greater employee productivity, and larger average customer transactions, Costco generates more than double the revenue per worker than its warehouse rival.
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u/Notmuchofanyth1ng 3h ago
Costco is just unbeatable. Same with In N Out. The similarity is the great treatment of employees. But make no mistake, in either place, you will work your ass off.
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u/Rough-Board1218 3h ago
Revenue is not profit. If a company has a 3% profit margin, its revenue is 33x its profit. Costco and Sam's club both have about 3% margins. So take those numbers and divide by 33. That's how much they actually make per employee
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u/Agreeable_Work4668 2h ago
Fake news. Look up Costco's CEO total compensation for 2025, ~$14M.
Sam's club CEO's total comp was $11.4M
I am not rooting / supporting for one or the other. I fact checked before jumping on the stupid band wagon.
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u/Hopperd12 2h ago
Ugh. Costco is unionized and if it wasnât for the union, those employees would be paid the same as Samâs. Costco does not want to pay what they are paying.
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u/QuestingInPajamas 2h ago
Costco as a whole is not unionized. A very small amount of Costco employees are part of a union.
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u/Hopperd12 2h ago
The unionized buildings forced them to pay the same at the non union buildings to keep them from ALL unionizing.
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u/JoeyJoeJoeChestnut 1h ago
That sounds suspiciously like some sort of collective bargaining agreement
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u/Reasonable-Source523 17m ago
You have two arguments here:
Costco employees are paid much higher than Sam's because they are unionized. (In fact only a small portion are unionized.)
Non-unionized Costco employees are paid the same as unionized Costco employees. (In fact "the same" is a stretch. Close is the right word, and there are still significant differences in how unionized and non-unionized Costco employees experience their daily work life, the availability of the traditional pension plan being one example.)So exactly what is your argument?
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u/Hopperd12 7m ago
That you canât make the same comparison to Samâs. Both have different operations where employees are concerned. Far as the corrections. Youâre right. I didnât go into extensive details. Our local worked on the contract for Costco here and when it finalized, they basically matched what the union employees got to the non union. Which is division tactic to discourage them from all unionizing.
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u/SnoopySuited 48m ago
8% of Costco employees are in a union. And that is only because when Costco merged with Price Club the union already existed and was allowed to remain.
Two locations independently unionized, but it's not a broad thing.
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u/ProgramLikeABeast 3h ago
Nah, though I am not standing with billionaires, I still doubt this. The revenue and profit of a company is more associated with marketing strategy and business model.
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u/Dismal_Act2082 4h ago
Oh wait so they can pay us a living wage and still make money I'm shocked.