Costco COO Ron Vachris Named CEO as Craig Jelinek to Step Down

Costco Wholesale has announced that CEO Craig Jelinek will be stepping down on Jan. 1, 2024, after more than a decade at the helm of the company, the company reported in a press release Wednesday (Oct. 18).

Jelinek will be succeeded by Ron Vachris, who currently serves as the chief operating officer (COO) and was promoted to the position in February 2022. Vachris has been with Costco for 40 years, starting as a forklift driver and working his way up through various roles related to the company’s business operations and merchandising activities.

This leadership transition comes as part of a long-standing succession plan that Jelinek discussed with the Board of Directors. Jelinek expressed his confidence in Vachris, saying, “Costco has a very strong culture and a deep bench of management talent. I have total confidence in Ron and feel that we are fortunate as a company to have an executive of his caliber to succeed me.”

Vachris has been working closely with Jelinek as president and COO for the past 21 months. Costco’s Board of Directors elected Vachris as the president and CEO effective Jan. 1, 2024.

Jelinek will remain with Costco through April 2024, serving in an advisory capacity and assisting Vachris during the handover period. Additionally, Jelinek will continue to serve on the Board of Directors and will stand for reelection at the annual meeting in January 2024.

The company also announced a quarterly cash dividend on Costco common stock of $1.02 per share.

The news comes as Costco joins other retailers in expanding into healthcare, partnering last month with online health marketplace Sesame.

According to the Sesame website, Costco members can access Sesame’s “best pricing” on online primary care visits ($29), checkups ($72) and mental health visits ($79).

Costco’s partnership with the company is happening amid a boom in retail healthcare efforts, with companies like Walmart and Amazon investing heavily in their healthcare projects.