Costco has kept its diversity, equity and inclusion (DEI) programs through two years of shareholder proposals, a letter from 19 state attorneys general and a federal executive order. Its filings show a change in wording, from "Diversity, Equity and Inclusion" to "Inclusion," while its Chief Diversity Officer, its supplier inclusion program and environmental and social metrics in executive pay remain. This Costco DEI timeline lists each step, with a source for every date and number.
"We believe that our diversity, equity and inclusion efforts are legally appropriate, and nothing in the proposal demonstrates otherwise."
Costco Board of Directors, proxy statement, Dec 11, 2024
For Costco’s grade and the findings behind it, see our Costco woke company report. For the 2025 shareholder vote and the reaction to it, see Costco keeps its DEI policies despite conservative pushback.
Costco DEI shareholder votes at a glance
| Meeting | Proposal | Board | For | Against | Against, share of for and against |
|---|---|---|---|---|---|
| Jan 23, 2025 | Report on the risks of maintaining DEI efforts | Against | 4,857,195 | 281,267,612 | 98.3% |
| Jan 15, 2026 | Greenwashing risk audit | Against | 4,058,782 | 279,690,631 | 98.6% |
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2020 to 2023: Costco builds its DEI structure
- Aug 28, 2020: Costco commits $25 million to LISC’s Black Economic Development Fund, an impact investment fund for "Black-led financial institutions and community development efforts." (LISC)
- Fiscal 2023: Costco combines its Diversity & Inclusion, Community Relations, Journeys for All and Supplier Diversity departments into one team, the Inclusive Community. Costco says "Its focus is to support Costco’s DEI strategy among employees, communities and suppliers." (Costco Sustainability Commitment 2024)
2024: DEI in the annual report and the proxy
- Oct 9, 2024: Costco’s FY2024 10-K has a section titled "Diversity, Equity and Inclusion." It says "We demonstrate leadership commitment to equity through consistent communication" and "support of diversity and inclusion initiatives within the organization, community involvement, and supplier inclusion." (FY2024 10-K)
- Dec 11, 2024: Costco’s proxy says the Board "unanimously recommends a vote AGAINST" a National Center for Public Policy Research proposal for a report on the risks of maintaining DEI efforts. The Board says "We believe that our diversity, equity and inclusion efforts are legally appropriate, and nothing in the proposal demonstrates otherwise." The proponent’s statement in the same proxy says Costco "quietly rebranded its DEI program to ‘People and Communities.’" (2024 proxy)
- Dec 11, 2024: The same proxy discloses that $93,333 of the CEO’s fiscal 2024 bonus eligibility depended on "metrics concerning diversity, equity and inclusion, resource consumption, and other environmental-related areas," and that "The quantitative environmental and social targets were met." (2024 proxy)
2025: The Costco DEI shareholder vote and the state AG letter
- Jan 17, 2025: The proponent files a memo with the SEC urging shareholders to vote for the DEI proposal. (NCPPR notice of exempt solicitation)
- Jan 21, 2025: President Trump signs Executive Order 14173, "Ending Illegal Discrimination and Restoring Merit-Based Opportunity." It is published in the Federal Register on Jan 31, 2025. (Federal Register)
- Jan 23, 2025: At Costco’s annual meeting, the DEI proposal gets 4,857,195 votes for and 281,267,612 against, with 4,092,595 abstentions. That is 98.3% against among votes cast for or against. (8-K filed Jan 27, 2025; Reuters)
- Jan 27, 2025: Attorneys general from 19 states, led by Iowa and Kansas, write to CEO Ron Vachris. They ask Costco to repeal its DEI policies or explain why it has not, within 30 days. (Iowa Attorney General; letter)
- Apr 8, 2025: The Iowa Attorney General’s office says Costco "reaffirmed its commitment to not discriminating based on race." It says the attorney general raised concerns that included "tying DEI metrics to executive bonuses," and that Costco said its team is "reviewing its policies to ensure that it is following the law." (Iowa Attorney General)
- Oct 8, 2025: Costco’s FY2025 10-K retitles the DEI section "Inclusion." It now says "We demonstrate leadership commitment to inclusion" and keeps "support of diversity and inclusion initiatives" and "supplier inclusion." (FY2025 10-K)
- Oct 14, 2025: Costco’s Compensation Committee approves the fiscal 2026 bonus plan. It allows $160,000 for the CEO and up to $64,000 for other executive officers on "environmental and social objectives," including "human capital and environmental-related areas." (8-K filed Oct 20, 2025)
- Dec 4, 2025: Costco’s proxy describes the fiscal 2025 bonus metrics as "environmental and human capital metrics." DEI is no longer named. The Board also opposes a proposal for a greenwashing risk audit of its Climate Action Plan, saying the plan "is not now and never has been a net zero commitment for all emissions." (2025 proxy)
- Fiscal 2025 (report covers the year ended Aug 31, 2025): Costco’s FY2025 Sustainability Report describes the "Inclusive Community team. Led by our Chief Diversity Officer (CDO)." It says the team supports "an increase in qualified suppliers that lend diversity to our merchandise offering." (FY2025 Sustainability Report)
2026: Latest Costco DEI news
- Jan 15, 2026: Shareholders reject the greenwashing audit proposal, 4,058,782 for and 279,690,631 against, with 3,242,464 abstentions. That is 98.6% against among votes cast for or against. (8-K filed Jan 21, 2026)
- Feb 7, 2026: CNN, citing The Wall Street Journal, reports that Vachris wrote to a customer in 2025 that Costco had never used hiring quotas: "If these are the policies you see as offensive, I must tell you I am not prepared to change." CNN also reports that Costco "has a chief diversity officer and a supplier diversity program." (CNN)
- Oct 7, 2026: Costco’s FY2026 10-K keeps the "Inclusion" section. It refers to "support of diversity and inclusion within the organization, community involvement, and supplier inclusion." (FY2026 10-K)
- Oct 13, 2026: Costco approves the fiscal 2027 bonus plan. It allows $200,000 of the CEO’s $1.2 million base bonus for "environmental and social metrics," and up to $80,000 for other executive officers on metrics "including those concerning human capital and environmental-related areas." The plan is filed with an 8-K on Oct 16, 2026. (8-K)
What the record shows
Costco has not announced an end to its DEI programs. From 2024 to 2026 it changed the wording in its filings: "Diversity, Equity and Inclusion" became "Inclusion," and "diversity, equity and inclusion" bonus metrics became "human capital" metrics. Its Chief Diversity Officer, its supplier inclusion program and environmental and social metrics in executive pay remain in its own documents. Shareholders sided with the Board on both proposals, each time with about 98% of votes cast for or against.
See how these findings are scored in the Costco DEI report.