James Sinegal
Encyclopedia
James D. Sinegal is co-founder and CEO of Costco
, an international low-price membership retail chain and the largest U.S. wholesale club, headquartered in Issaquah, Washington
, U.S..
He was born January 1, 1936 into a Catholic working-class family in Pittsburgh, Pennsylvania
. His mother placed him in a orphanage as she was unable to take care of him. Later in his life, when he was 11, she "re-adopted' Mr. Sinegal and he met his new step father, Giuseppe Siniscalli (later changed to Sinegal) who came over from Pisticci, Italy in 1901 at the age of 1 year old. He took his step-fathers last name as Sinegal was not close to his biological father. His biological fathers last name is Wright. He attended Helix High School
in La Mesa, California
. He earned an AA at San Diego City College in 1955. Sources vary on his higher educational attainment. Some sources indicate he earned a BA from San Diego State University
(1959) and others that he dropped out of college when he found his true vocation.
After he started as a bagger at FedMart
in 1954 he found he loved retailing. At FedMart, he worked his way up to executive vice president in charge of merchandising and operations. He was a vice president of merchandising for Builders Emporium 1977-1978, and an executive vice president for the Price Company 1978-1979. From 1979-1983 he worked with Sinegal/Chamberlain and Associates, a company which acted as a broker and sales representative for food and non-food products. Together with Seattle retailer Jeff Brotman, he co-founded Costco and from 1983 he has been President and CEO of Costco. His innovations made Costco the first warehouse club to include fresh food, eye-care clinics, pharmacies, and gas stations.
He was a protege of Sol Price
, who pioneered the concept of the warehouse store
that sells high volumes of a small variety of goods to members only. Sinegal is known for a benevolent style of management
that offers employees high benefits and rewards.
In an interview published in the Houston Chronicle
on July 17, 2005, he told Steven Greenhouse that he was not interested in Wall Street analysts who took issue with his care for employees and customers rather than happier shareholders. Investors might want higher earnings but Sinegal stated “We want to build a company that will still be here 50 and 60 years from now." A favorite saying of his is “you have to take the shit with the sugar”. Investors who bought $10,000 of Costco stock in 1992 had $43,564 ten years later, a return of 354% (or 15.855% annually).
He married Janet L. Dwyer in San Diego on July 21, 1962 and they have three children.
In 2009, Mr. Sinegal was considered one of "The TopGun CEOs" by Brendan Wood International, an advisory agency.
in order to keep them in the City of Seattle. The members of the local ownership group included Microsoft CEO Steve Ballmer, Seattle developer Matt Griffin, Jim Sinegal, and wireless magnate John Stanton. Following the 2007–08 season, the team relocated to Oklahoma City
, and now play as the Oklahoma City Thunder
.
Costco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
, an international low-price membership retail chain and the largest U.S. wholesale club, headquartered in Issaquah, Washington
Issaquah, Washington
Issaquah is a city in King County, Washington, United States. The population was 30,434 at the 2010 census.Based on per capita income, Issaquah ranks 25th of 522 areas in the State of Washington to be ranked....
, U.S..
He was born January 1, 1936 into a Catholic working-class family in Pittsburgh, Pennsylvania
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
. His mother placed him in a orphanage as she was unable to take care of him. Later in his life, when he was 11, she "re-adopted' Mr. Sinegal and he met his new step father, Giuseppe Siniscalli (later changed to Sinegal) who came over from Pisticci, Italy in 1901 at the age of 1 year old. He took his step-fathers last name as Sinegal was not close to his biological father. His biological fathers last name is Wright. He attended Helix High School
Helix High School
Helix High School, in La Mesa, California, is a charter high school built in 1952. It received its charter in 1998. Part of the Grossmont Union High School District, it serves a low to mid-level socioeconomic community and has a student body of approximately 2,400 pupils...
in La Mesa, California
La Mesa, California
La Mesa is a city in San Diego County, California. The population was 57,065 at the 2010 census, up from 54,749 at the 2000 census. It was founded in 1869 and officially incorporated as a city on February 16, 1912. Its official flower is the bougainvillea....
. He earned an AA at San Diego City College in 1955. Sources vary on his higher educational attainment. Some sources indicate he earned a BA from San Diego State University
San Diego State University
San Diego State University , founded in 1897 as San Diego Normal School, is the largest and oldest higher education facility in the greater San Diego area , and is part of the California State University system...
(1959) and others that he dropped out of college when he found his true vocation.
After he started as a bagger at FedMart
FedMart
FedMart was a chain of discount department stores started by Sol Price, who later founded Price Club. His first location in San Diego, California was in a converted airport hangar. It was originally a discount department store open to government employees, who paid a membership fee of $2 per...
in 1954 he found he loved retailing. At FedMart, he worked his way up to executive vice president in charge of merchandising and operations. He was a vice president of merchandising for Builders Emporium 1977-1978, and an executive vice president for the Price Company 1978-1979. From 1979-1983 he worked with Sinegal/Chamberlain and Associates, a company which acted as a broker and sales representative for food and non-food products. Together with Seattle retailer Jeff Brotman, he co-founded Costco and from 1983 he has been President and CEO of Costco. His innovations made Costco the first warehouse club to include fresh food, eye-care clinics, pharmacies, and gas stations.
He was a protege of Sol Price
Sol Price
Sol Price was the founder of FedMart and Price Club . He is considered a pioneer of the "warehouse store" retail model....
, who pioneered the concept of the warehouse store
Warehouse store
A warehouse store, as opposed to a warehouse club, is a retail location with a limited variety of merchandise sold in bulk at a discount to customers...
that sells high volumes of a small variety of goods to members only. Sinegal is known for a benevolent style of management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
that offers employees high benefits and rewards.
In an interview published in the Houston Chronicle
Houston Chronicle
The Houston Chronicle is the largest daily newspaper in Texas, USA, headquartered in the Houston Chronicle Building in Downtown Houston. , it is the ninth-largest newspaper by circulation in the United States...
on July 17, 2005, he told Steven Greenhouse that he was not interested in Wall Street analysts who took issue with his care for employees and customers rather than happier shareholders. Investors might want higher earnings but Sinegal stated “We want to build a company that will still be here 50 and 60 years from now." A favorite saying of his is “you have to take the shit with the sugar”. Investors who bought $10,000 of Costco stock in 1992 had $43,564 ten years later, a return of 354% (or 15.855% annually).
He married Janet L. Dwyer in San Diego on July 21, 1962 and they have three children.
In 2009, Mr. Sinegal was considered one of "The TopGun CEOs" by Brendan Wood International, an advisory agency.
Compensation
According to documentation provided by Costco Wholesale Corporation, in fiscal year 2007 Sinegal earned $350,000 in base pay, with additional funds coming from bonuses, stock/option awards and other compensations, totaling $2,981,202. In 2008, he earned a total compensation of $3,787,280, which included a base salary of $350,000, a cash bonus of $80,000, and stocks granted of $3,290,150. In 2009, he earned a total compensation of $2,734,276, which included a base salary of $350,000, a cash bonus of $75,000, stocks granted of $2,230,700, and other compensation totaling $78,576.Sports
On March 6, 2008 Seattle's Mayor announced that a local ownership group involving Microsoft CEO Steve Balmer made a "game changing" commitment to invest $150 million in cash towards a $300 million renovation of Key Arena and were ready to purchase the Seattle SuperSonicsSeattle SuperSonics
The Seattle SuperSonics were an American professional basketball team based in Seattle, Washington that played in the Pacific and Northwest Divisions of the National Basketball Association from 1967 until 2008. Following the 2007–08 season, the team relocated to Oklahoma City, and now plays as...
in order to keep them in the City of Seattle. The members of the local ownership group included Microsoft CEO Steve Ballmer, Seattle developer Matt Griffin, Jim Sinegal, and wireless magnate John Stanton. Following the 2007–08 season, the team relocated to Oklahoma City
Oklahoma City, Oklahoma
Oklahoma City is the capital and the largest city in the state of Oklahoma. The county seat of Oklahoma County, the city ranks 31st among United States cities in population. The city's population, from the 2010 census, was 579,999, with a metro-area population of 1,252,987 . In 2010, the Oklahoma...
, and now play as the Oklahoma City Thunder
Oklahoma City Thunder
The Oklahoma City Thunder are a professional basketball franchise based in Oklahoma City, Oklahoma. They play in the Northwest Division of the Western Conference in the National Basketball Association ; their home court is at Chesapeake Energy Arena....
.