Costco Wholesale Corporation stands as one of the largest warehouse retailers globally, serving millions of members through its membership-based business model. Understanding who owns Costco involves examining its complex ownership structure. Costco is a publicly traded company on NASDAQ, meaning no single person owns the company outright. Instead, ownership is distributed among institutional investors holding approximately 70 percent of shares, retail investors with about 30 percent, and company insiders owning less than 0.2 percent. The warehouse giant continues expanding internationally while maintaining its commitment to low prices and bulk product offerings. This ownership structure allows Costco to balance shareholder interests with operational excellence, contributing to its position as a retail powerhouse alongside competitors like Target and Amazon.
Largest Shareholders of Costco
When examining who owns Costco, institutional investors emerge as the dominant force in the ownership landscape. These large investment firms collectively control the majority of outstanding shares, wielding significant influence over corporate decisions.
Costco Ownership Distribution
Top Institutional Shareholders
The Vanguard Group holds the largest stake in Costco, owning approximately 9.5 percent of outstanding shares. This position represents over 41 million shares valued at billions of dollars. Vanguard’s substantial ownership gives it considerable voting power on major corporate matters.
BlackRock ranks as the second-largest institutional shareholder, controlling around 7.9 percent of Costco shares. This translates to approximately 33.5 million shares. BlackRock’s investment reflects confidence in Costco’s long-term growth prospects and business model.
State Street Global Advisors rounds out the top three institutional owners with approximately 4.1 percent ownership. These three asset management giants together own more than 21 percent of Costco, demonstrating the concentrated nature of institutional ownership. Similar to how Target and Walmart have significant institutional backing, Costco benefits from the stability these major investors provide.
| Shareholder | Ownership Percentage | Approximate Shares |
|---|---|---|
| Vanguard Group | 9.5% | 41.7 million |
| BlackRock | 7.9% | 33.6 million |
| State Street Global Advisors | 4.1% | 18+ million |
Retail and Individual Investors
Individual retail investors hold approximately 30 percent of Costco shares. These everyday shareholders purchase stock through brokerage accounts, participating in the company’s growth through dividends and share appreciation. This segment represents millions of individual investors who believe in Costco’s business model.
Company Insider Ownership
Company insiders, including executives and board members, own a very small portion of Costco stock. Former CEO Craig Jelinek held approximately 0.09 percent of shares. Current CEO Ron Vachris and other executives collectively own less than 0.2 percent. This relatively low insider ownership is typical for large publicly traded retailers but ensures management has skin in the game.
History of Costco Co-founders
The story of who owns Costco begins with understanding its founders. James Sinegal and Jeffrey Brotman established the company with a revolutionary vision for retail.
Foundation and Early Vision
The first Costco warehouse opened its doors in Seattle, Washington, on September 15, 1983. Sinegal and Brotman pioneered a membership-based model that offered bulk products at remarkably low prices. This innovative approach immediately attracted customers seeking value and quality. The founders understood that charging annual membership fees would create customer loyalty while allowing the company to operate on thin profit margins.
The business model focused on offering high-quality items at lower prices than traditional retailers. By limiting product selection to fast-moving items and negotiating directly with manufacturers, Costco could pass savings to members. This strategy proved highly successful.
Growth and Expansion
Under Sinegal’s leadership as CEO until 2012, Costco expanded from a single warehouse to hundreds of locations across multiple countries. The company merged with Price Club in 1993, strengthening its market position. This merger combined two successful warehouse club concepts, creating the Costco Wholesale Corporation that exists today.
Brotman served as chairman until his death in 2017, guiding the company’s strategic direction for over three decades. The founders built a corporate culture emphasizing employee welfare, customer satisfaction, and ethical business practices. Their legacy continues influencing Costco’s operations today, with the company maintaining its commitment to the original principles established in 1983.
Who is on the Board of Directors for Costco?
Understanding who owns Costco extends to examining the board of directors responsible for overseeing management and making strategic decisions. The board comprises nine members who bring diverse expertise across retail, technology, finance, and operations.
Board Leadership
Hamilton E. James serves as Chairman of the Board at age 73. James brings extensive financial services experience, having served as Executive Vice Chairman of Blackstone Group until January 2022. He joined Costco’s board in August 1988, serving as Lead Independent Director from 2005 until becoming Chairman in August 2017. His decades-long tenure provides institutional knowledge and strategic guidance.
Ron M. Vachris holds dual roles as CEO, President, and Director at age 59. Vachris assumed the CEO position in January 2024 after serving as President and Chief Operating Officer. He joined the board in February 2022. His extensive Costco experience spanning over 40 years, beginning as a forklift driver at Price Club in 1982, provides deep operational knowledge.
Technology and E-commerce Expertise
Susan L. Decker, age 62, has served as a director since October 2004. She founded Raftr and previously held senior positions at Yahoo, including President from 2007 to 2009. Her technology background helps Costco navigate digital transformation challenges.
Kenneth D. Denman, age 66, joined the board in March 2017. As a General Partner at Sway Ventures and former CEO of multiple technology companies, Denman brings valuable expertise in digital innovation. He also serves as lead independent director at Motorola Solutions.
Jeffrey S. Raikes, age 66, has been a director since December 2008. He spent 27 years at Microsoft, including serving as President of the Business Division. Raikes co-founded the Raikes Foundation and served as CEO of the Bill and Melinda Gates Foundation from 2008 to 2014. His technology and philanthropic experience adds valuable perspective.
Retail and Consumer Experience
Helena B. Foulkes, age 60, joined the board in August 2023. She served as CEO of Hudson’s Bay Company and spent 25 years at CVS Health Corporation, including as President of CVS Pharmacy. Her retail expertise complements Costco’s operational focus.
Sally Jewell, age 68, has served as a director since January 2020. She was CEO of Recreational Equipment Inc. from 2005 to 2013 and served as U.S. Secretary of the Interior under President Obama. Her retail and environmental experience brings unique perspectives to board discussions.
Telecommunications and Operations
John W. Stanton, age 69, joined the board in October 2015. He chairs Trilogy Equity Partners and First Avenue Entertainment, which owns the Seattle Mariners. Stanton founded Western Wireless Corporation and served as Chairman and CEO of T-Mobile USA. He currently serves on Microsoft’s board of directors.
Mary Agnes Wilderotter, age 69, has been a director since October 2015. She served as CEO and Chair of Frontier Communications and held executive positions at multiple technology companies. Her telecommunications expertise helps Costco address technology infrastructure needs. She currently serves as Chairman of DocuSign and on several other corporate boards.
The board operates through three main committees. The Audit Committee, chaired by Kenneth Denman, oversees financial reporting and internal controls. The Compensation Committee, led by John Stanton, determines executive compensation. The Nominating and Governance Committee, chaired by Jeffrey Raikes, identifies board candidates and oversees corporate governance. These committees met multiple times during fiscal 2024 to fulfill their oversight responsibilities.
FAQs
Is Costco privately or publicly owned?
Costco is a publicly traded company listed on NASDAQ under the ticker symbol COST. Anyone can purchase shares through a brokerage account.
Who is the largest shareholder of Costco?
The Vanguard Group is the largest shareholder, owning approximately 9.5 percent of outstanding shares, representing over 41 million shares valued at billions of dollars.
Who founded Costco and when?
James Sinegal and Jeffrey Brotman founded Costco on September 15, 1983, opening the first warehouse in Seattle, Washington. The company pioneered the membership warehouse model.
How much of Costco do executives own?
Company insiders, including executives and board members, own less than 0.2 percent of total shares. Former CEO Craig Jelinek owned approximately 0.09 percent of outstanding stock.
Who is the current CEO of Costco?
Ron Vachris serves as CEO and President since January 2024. He started at Price Club in 1982 and rose through various management positions over 40 years.