Costco 2011 Annual Report Download - page 7

All of our efforts are supported by our outstanding management team. When Costco was founded in
1983, we brought in some of the very best retail executives in the industry, most of them people we
had worked with for years in other companies. Together we worked to train and build Costco’s
management team into what we believe is the strongest and most cohesive in the industry. Most of our
senior executives have been with the Company for more than 25 years and are well-versed in all areas
of our operations. Growing Costco’s future leaders has been a major objective for all of us since the
beginning, and we have a deep bench of managers at all levels who are wholly committed to our
culture and core objectives and well-equipped to assume additional responsibilities.
In September of this year, Costco’s co-founder Jim Sinegal informed our Board of Directors of his
intention to step down as Chief Executive Officer of the Company effective January, 2012. The Board
elected Craig Jelinek, President and Chief Operating Officer since February 2010, as President and Chief
Executive Officer effective January, 2012. Craig has been working very closely with Jim and co-founder/
Chairman of the Board Jeff Brotman over the past 18 months in coordinating major Company matters.
Craig is a highly experienced retail executive with 37 years in the industry, 28 of them at Costco, where
he started as one of the Company’s first warehouse managers in 1984. He has served in every major
role related to Costco’s business operations and merchandising activities during his tenure and is well-
prepared to assume the Company’s leadership. Jim Sinegal will remain with Costco through January
2013, serving in an advisory role and assisting Craig during the transition. Jim will also continue to
serve on the Board of Directors and will stand for reelection at the January 2012 Annual Meeting.
Costco has a strong corporate culture, one that Craig Jelinek helped to build and will continue to
support as he assumes leadership of the Company’s more than 161,000 employees around the world.
The Company will continue to pursue its mission of bringing the highest quality goods and services to
market at the lowest possible prices while providing excellent customer service and adhering to a strict
code of ethics that includes taking care of our employees and members, respecting our suppliers,
rewarding our shareholders, and seeking to be responsible corporate citizens and environmental
stewards in our operations around the world.
So what does the future hold for Costco? Like most retailers, we had our challenges in 2011: the
lackluster economy, a tough competitive environment, increased healthcare costs, and inflation, among
others. Yet we persevered by sticking to the basic principles that have made our Company successful.
We expect many of these same challenges may stay with us in 2012 and beyond, and we will meet
them head-on with continued passion and integrity, giving attention to all of our stakeholders, and
keeping a constant focus on achieving excellence while being innovative and nimble. Our decisions will
be made with an eye on the long term, so that Costco will still be successful for many years to come.
We appreciate the trust you, our shareholders, have placed in our management team, and on behalf of
our 161,000 employees around the world, we thank you for your support. We hope to see many of you
at our Annual Meeting of Shareholders on January 26th in Bellevue, Washington, where we will review
our 2011 accomplishments and discuss plans for a successful 2012.
Best wishes to you and your loved ones for a wonderful holiday season and a healthy, happy, and
prosperous New Year.
Warm Regards,
Jeff Brotman
Chairman of the Board
Jim Sinegal
Chief Executive Officer
Craig Jelinek
President & COO
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