Ron Vachris doesn’t fit the mold of a typical, risk-taking executive.
Vachris began his journey at Costco as a forklift operator in 1982 while attending community college. Subsequently, he managed various Costco warehouses across the West Coast before his appointment as the company’s head of real estate in 2015.
“I was quite surprised” by the request to lead the real estate division, Vachris commented later in a rare interview. “My entire background involved operations and warehouse management.”
In 2024, over four decades after his start at Costco, Vachris became the company’s third CEO.
“I’m not an anomaly” among the company’s leadership, he stated. “We have a very humble group” that isn’t focused on “acclaim (or) standing on a pedestal somewhere.”
Yet, over the past year, Costco ventured into significant risk by adopting public stances contrary to President Donald Trump’s agenda. This positions Costco as one of the few large corporations challenging the administration—and seemingly emerging unscathed.
Costco rarely takes a leading role in contentious political or social issues, and its actions have been measured. Nevertheless, the company’s positions have drawn attention at a time when many businesses are self-censoring or altering policies to align with Trump.
Costco also sued the administration over tariff reimbursements, risking backlash from the government.
But Costco has yet to face negative repercussions. Analysts suggest the company is better equipped for such stances than others, owing to the high loyalty garnered from both customers and employees towards the brand.
Customers pay an annual membership fee for shopping privileges at Costco, with over 90% renewing their subscriptions yearly. The company also boasts some of the lowest employee turnover rates in retail, partly because it offers wages exceeding those of competitors.
“Look who runs the company today—we all moved up through the Costco career path,” Vachris noted in an interview last year. “Employee retention is the bedrock of the company’s success.”
Costco, which lacks a dedicated press department and rarely engages with the media, declined CNN’s request for an interview with Vachris.
“Costco really has a good bipartisan reputation. Everyone likes it. It’s incredibly affordable and treats its workers well,” said Alison Taylor, a clinical associate professor of business and society at the NYU Stern School of Business. “They know where they stand and haven’t wavered much.”
The day after returning to the White House, Trump issued an executive order targeting DEI programs in both public and private sectors.
He also threatened investigations and lawsuits—a threat his administration appears to be following through on.
On Wednesday, the U.S. Equal Employment Opportunity Commission announced it was investigating Nike over allegations of discriminating against white employees. Nike described this as an “unexpected and unusual escalation” and maintained that its policies are lawful.
Costco, which has never overtly championed DEI, hasn’t tied its brand to diversity and inclusion as closely as some other corporations. While there is an online diversity director and a supplier diversification program, 80% of its management remains white.
However, Costco affirmed its commitment to its DEI objectives. The company’s board unanimously recommended in January of last year that shareholders vote against a proposal from a conservative group that would have required Costco to examine the financial risks of maintaining diversity programs.
“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise, furthering the ‘treasure hunt’ experience that our customers value,” Costco informed investors in a proxy statement.
Vachris also emphasized the benefits of a diverse workforce.
“I don’t want to be surrounded by people like myself,” he said in a 2024 interview. “I want to hear different perspectives and opinions, and different views on things—and diversity really helps us with that.”
Over 98% of Costco shareholders voted against the anti-DEI proposal. This vote consolidated support for Costco from civil rights leaders and left-leaning customers. Supporters contrasted Costco’s move with Target’s decision to scale back its DEI efforts.
Last year, Vachris defended the company’s diversity and inclusion practices in response to a customer who wrote expressing concern that Costco was hiring based on “skin color” or “gender identity,” according to the Wall Street Journal.
The CEO replied via email that Costco has never utilized hiring quotas and remains focused on offering equal opportunities to all employees.
“If you find policies like these offensive, I must say that I am not prepared to change,” he stated.
Confronting Trump
Later that year, Costco adopted an even bolder stance. The company sued the Trump administration over tariffs.
Costco joined a lawsuit alleging that Trump overstepped his emergency powers by imposing broad tariffs, and demanded that the money be refunded.
Costco is working to offset tariff costs and is selectively passing price increases along.
Costco sued the Trump administration over tariffs.
Costco sued the Trump administration over tariffs. David Paul Morris/Bloomberg/Getty Images
Costco “will handle this challenge” by leveraging its scale and broad supplier base to minimize the tariffs’ impact, Vachris stated during an earnings call in March. The company has not disclosed how much it has paid in tariffs since the start of Trump’s second term.
Costco was not alone in the lawsuit—Bumble Bee Foods, EssilorLuxottica (the parent company of Ray-Bans), Revlon, and Kawasaki Motors also participated. However, Costco was the most prominent publicly traded company fighting the White House over tariffs.
Few major corporations have been willing to risk public conflict over Trump’s policies. Companies quietly avoid confrontation, seeking favor through elaborate gifts, large donations to presidential projects, and strategic deployment of CEOs to the Oval Office.
But tariffs have generally been unpopular with Americans, who connect them to the nation’s affordability crisis. This provided Costco with some justification for challenging the administration, business analysts note.
“It was a risk. It’s surprising they got away with it,” commented Alison Taylor from NYU. “I think the administration realizes that pressing Costco is not a winnable situation.”
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