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F O R T U N E J U N E /J U LY 2 0 2 1 9

CONTENTS

VOLUME 183, NUMBER 3

Features June/July 2021 SPECIAL SECTION: THE FORTUNE 500

110

A Massive Crisis, A Great Reimagining The COVID-19 pandemic reshuffled the Fortune 500 rankings in unprecedented and potentially permanent ways. BY BRIAN O’KEEFE

112

Exxon Under Siege Though facing pressure from activist investors to embrace clean energy, the oil giant is betting that higher crude prices will bring its business roaring back. BY KATHERINE DUNN

122

Inside the Ad, Ad, Ad, Ad World of YouTube Welcome to Alphabet’s small-screen powerhouse—and the fourthlargest seller of digital ads worldwide. BY AARON PRESSMAN

163 The Lists

F1 The 500 Largest U.S. Corporations F21 Arrivals & Departures F22 Explanations & Notes F23 Company Performance F27 The 500 Ranked Within Industries

I L L U S T R AT I O N B Y A R T U R T E N C Z Y N S K I

F38 Index

132

142

CEO Marc Benioﬀ has driven Salesforce to dizzying growth. Will his latest acquisition slow him down? Will anything?

America’s pandemicdriven love aﬀair with country living made Tractor Supply one of the hottest retailers of 2020.

BY MICHAL LEV-RAM

BY PHIL WAHBA

Force of Nature

Chicken Coup

152

Subdivide and Conquer Homebuilder Lennar scales new heights as the U.S. appetite for brandnew homes builds and builds. BY SHAWN TULLY

COVER ILLUSTRATION BY ORI TOOR

CONTENTS

1 0 F O R T U N E J U N E /J U LY 2 0 2 1

Departments

Foreword 14

WHAT OUR EDITORS ARE UP TO NEXT

Why Empowering People Comes First— in Business and Government

FORTUNE EDUCATION

BY CLIF TON LE AF

Our team of experienced editors rank, rate, and recommend the right degree programs for you and your career. fortune.com/ education

The Conversation 20

Verizon CEO Hans Vestberg on the Future of Wireless and the Race for 5G Dominance INTERVIE W BY A ARON PRES SMAN

FORTUNE MPW NEXT GEN

The Brief 29

The Battle for Talent in a CandidateDriven Job Market BY S. MITR A K ALITA

Vaccine Queen: CVS CEO Karen Lynch Takes on the Challenge of Inoculating America BY EMMA HINCHLIFFE

The CEO Outlook: Upbeat in the C-Suite

The Big Idea 100

HOW THE BIGGEST NAMES IN BUSINESS TOOK ON HEALTH CARE—AND LOST Why even the dream team of Amazon, Berkshire Hathaway, and JPMorgan Chase failed to overhaul our broken system. BY ERIK A FRY

This virtual summit (June 23–24) convenes preeminent women in business and leadership, such as former PepsiCo CEO Indra Nooyi and economist Dambisa Moyo. fortuneconferences.com

BY AL AN MURR AY

Tech’s Latest Mini-Industry: Ransomware Negotiation

BULL SHEET

Passions

The Cartographer

220 Green Machines:

224 Biden vs. the World

BY ADRIAN CROF T

Your Father’s Stock Market Is Never Coming Back

It’s Easy Being Green With These Stunning Timepieces

BY JOSHUA BROWN

BY DANIEL BENTLE Y

on Taxes: Corporate Tax Rates Across the Globe BY GEOFF C OLVIN & NIC OL AS R APP

Fortune (ISSN 0015-8259) is published monthly, delivered in combined issues in February, April, June, August, October, and December, by Fortune Media (USA) Corporation, Principal Office: 40 Fulton Street, New York, NY 10038. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send all UAA to CFS. (See DMM 507.1.5.2). Non-Postal and Military Facilities: Send address corrections to Fortune magazine, P.O. Box 37508, Boone, IA 50037-0508. Canada Post Publications Mail Agreement #40069223. BN# 888381621RT0001. ©2021 Fortune Media IP Limited. Printed in the U.S.A. Customer Service and Subscriptions: For 24/7 service, please use our website: www.fortune.com/myaccount. You can also call 1-800-621-8000 or write to Fortune magazine, P.O. Box 37508, Boone, IA 50037-0508. Reproduction in whole or in part without written permission is strictly prohibited. Your bank may provide updates to the card information we have on file. You may opt out of this service at any time.

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The first substantive feature on Amazon.com that Fortune published was in December 1996. The title of that piece—“The Next Big Thing: A Bookstore?”—seems almost quaint in retrospect. Amazon.com, as the article explained, was “leading a wave of digital shops out to invade established industries,” a slew of upstarts taking on everything from publishing and stock trading to that most impregnable of advertising businesses, the telephone yellow pages. Amazon, the young prince in this domain, had no storefronts or pricey inventory to stock—back then, the company didn’t procure a title from a publisher or book distributor until after the customer had ordered it. Jeff Bezos, a former hedge funder who’d quit his Wall Street job, moved to Seattle, and managed to raise a tiny bit of seed capital to get his Internet bookseller running, was now spending the company’s cash flow (and then some) on “hiring programmers who [could] make his service even more efficient,” wrote Fortune scribe Michael H. Martin. Bezos was determined to make sure customers could get any book in print, and he gave them hefty discounts, too. As he told us then, “Most online businesses fail because they misestimate the value proposition.” Bezos clearly didn’t. Six years later, in 2002, Amazon made it onto the Fortune 500, sneaking in at No. 492, with just over $3 billion in revenue. In the six years that followed, the company shot up an unprecedented 321 places on our list, to the No. 171 spot. Six years after that, it was the 35th largest revenue producer in the United States. Today, it’s No. 2 on the Fortune 500 (behind only Walmart), with $386 billion in annual sales. I joined Fortune at the start of 2000, just a few years after Michael Martin wrote about this “next big thing” in business. The print magazine then—there was no website—was flush with sto-

ries Internet rri es about the shining new Intern economy. A veritable bl cottage industry d of dotcom analysts spoke of the vast new economies of scale that came from connecting buyers and sellers via the web, and the savings that could be had by shedding the brickand-mortar casings of old-world commerce. What they often missed— and what Bezos understood from the get-go—was that the Internet offered an analgesic, not a panacea: It took away some of the pain of store-based commerce, but didn’t guarantee success. (For evidence, see the endless potter’s ﬁeld of dotcom graves that have been ﬁlled since then.) What did give companies a genuine edge, and what still does today, is to empower consumers. It sounds almost too obvious to say, and yet it’s a message that’s routinely forgotten. Want to sell more stuff? Make it as easy as possible for a customer to buy it. Want to entice the masses to spend hundreds of dollars on your revolutionary “smartphone”? Take a page from the Steve Jobs playbook and make it as intuitive to use as possible. When I think of what I’ve learned about business since arriving at Fortune—and, particularly, in my past four years and change as editor-inchief—I come away with a comically simple set of lessons: Empower customers. Treat people well. Meet an unmet need. Make the world better. If you want to judge a business, forget the price/earnings multiple and rate of sales growth. Ignore 98% of what you hear in analyst calls, and just ask yourself how the company performs in the four key areas above. Part of me wishes I had something more profound to say in this last of my editor’s notes. Yes, at the risk of

I L L U S T R AT I O N B Y S A M K E R R

The Drivers of Success

FOREWORD

burying the lede, I am stepping away from this glorious perch soon after this issue hits the stands—and after the happiest and most rewarding career at Fortune I could have ever imagined. To say that I have loved this place and my colleagues is the greatest of understatements. The work done by these truly gifted and dedicated journalists will shine for decades to come. That work, indeed, that honest, authoritative, and sharp-eyed storytelling, has been the mission of Fortune for the past 91 years—during my tenure as well as in the eras of the 18 top editors who came before me. It’s our mission, and it fundamentally makes business better. WHICH BRINGS ME TO the second part of this goodbye. As I thought about where we, as a society, stand today, I found myself returning again to the lessons above—and asking where we could make the world better, meet an unmet need, treat people well, and empower customers. My mind turned to a place in which we business editors seldom dwell: government. Government, after all, melds too easily in people’s minds with politics—and politics is an ever-nastier place to journey these days. But an audience of readers who care about business also ought to care about one critical aspect of government—and that’s how we choose it. In the wake of the presidential election this fall, that act—selecting who we want to govern us, to spend our tax dollars, to keep the lights on and keep us safe—has gotten harder. As of this writing, close to 400 bills have been introduced in 47 states that would place new restrictions on

It sounds too obvious to say, and yet the message is routinely forgotten: Want to sell more stuff? Make it as easy as possible for a customer to buy it. the way people can vote or reduce access to traditional voting options such as mail-in ballots, drop boxes, or early voting, according to the nonpartisan Brennan Center for Justice at New York University School of Law. In 12 states such bills have already been signed into law. “There has never been this aggressive an attempt to restrict voting in America,” says Wendy Weiser, who directs the center’s Democracy Program. The intensity of the effort is being driven by unfounded accusations that the presidential contest was somehow “stolen,” though every postelection investigation and judicial court has found otherwise. The net effect, says Weiser, is that it will be harder for tens of millions of Americans to vote in coming elections. Far less noticed, she says, has been the spate of legislative assaults on the business of running elections

themselves: Efforts to use technology to modernize the voter registration process—and make it more accurate—are being rolled back. “In the business world, nobody would manage such a system by having all their customers send in pieces of paper that then have to be checked individually, require thousands of workers to decipher handwriting, and inevitably make mistakes,” says Weiser. “That would never ﬂy in the private sector.” Yet that’s what we have now in many jurisdictions. Voters, of course, are the government’s customers. So elected officials should do everything they can to make voting more convenient, not less; easier, not more burdensome. Most business leaders already support such a goal. In our new poll of Fortune 500 CEOs, 81% of respondents agree with the statement that “everything possible should be done to make it easy for every citizen to vote.” Jeffrey Sonnenfeld, senior associate dean of leadership studies and a professor of leadership practice at the Yale School of Management, says there’s good reason for such support: “For the free enterprise system to endure,” he says, “people have to feel they have ownership in the system. The electoral process has to be seen as a system that is fundamentally anchored on free and fair competition.” The same principles, that is, that make for a strong market-based omy. economy.

CLIFTON LEAF Editor-in-Chief, Fortune @CliftonLeaf

KIDA by Stephen Burks

www.dedon.us

1 8 F O R T U N E J U N E / J U LY 2 0 2 1

EDITORIAL

EDITOR-IN-CHIEF

Clifton Leaf

DEPUTY EDITOR Brian O’Keefe DIGITAL EDITOR Rachel Schallom Lobdell SENIOR FEATURES EDITOR Matthew Heimer FEATURES EDITOR Kristen Bellstrom EXECUTIVE EDITOR, ASIA Clay Chandler EDITORIAL DIRECTOR, MPW LIVE EVENTS Michal Lev-Ram EDITORIAL DIRECTOR, CONNECT Ellen McGirt EDITORIAL DIRECTOR, FORTUNE EDUCATION Lance Lambert SENIOR EDITORS AT LARGE Geoff Colvin, Shawn Tully CREATIVE DIRECTOR Peter Herbert DIRECTOR OF PHOTOGRAPHY Mia J. Diehl DIRECTOR OF VIDEO Mason Cohn DIRECTOR OF PROJECTS Lee Clifford DIRECTOR OF PRODUCTION Lydia Belanger DIRECTOR OF NEWS Bobbie Gossage INFORMATION GRAPHICS DIRECTOR Nicolas Rapp ART DIRECTOR Josue Evilla SENIOR EDITORS Daniel Bentley, Scott DeCarlo (lists), Verne Kopytoff, Beth Kowitt, Bernhard Warner (Rome), Claire Zillman (Hong Kong) SENIOR WRITERS Maria Aspan, Eamon Barrett (Hong Kong), Erika Fry, Robert Hackett, David Meyer (Berlin),

Jeremy Kahn (London), Aaron Pressman, Phil Wahba EDITORS Katherine Dunn (London), Emma Hinchliﬀe, Rachel King, Jake Meth (commentary), Siva Sithraputhran (Manchester) AUDIENCE ENGAGEMENT John Buysse (editor), Nicholas Gordon (associate editor, Hong Kong), McKenna Moore (assistant editor) SENIOR SPECIAL CORRESPONDENTS Susie Gharib (New York), Vivienne Walt (Paris) WRITERS Danielle Abril, Sheryl Estrada, Nicole Goodkind, Yvonne Lau (Hong Kong), Rey Mashayekhi,

Grady McGregor (Hong Kong), Sy Mukherjee, Biman Mukherji (New Delhi), Lucinda Shen, Anne Sraders, Jonathan Vanian PRODUCERS Wandy Felicita Ortiz (newsletters), Bianca Silva (digital) REPORTERS Christiaan Hetzner (Frankfurt), Jessica Mathews, Sophie Mellor (London), Marco Quiroz-Gutierrez LIST TEAM Rhona Altschuler, Kathleen Smyth FORTUNE EDUCATION TEAM Anna-Louise Jackson (editor), Sydney Lake (writer) CONTRIBUTORS Jeﬀrey Ball, Ben Carlson, Brian Dumaine, Dinah Eng, Adam Erace, Kat Eschner, Ellen Florian, S. Mitra Kalita, Tracey Lindeman, Carol Loomis, Sheila Marikar, Jennifer Mizgata, Chris Morris, Jeﬀrey Sonnenfeld, Lindsey Tramuta PHOTO DEPARTMENT Michele Taylor, Alexandra Scimecca (associate photo editors) DEPUTY DIRECTOR OF VIDEO Megan J. Arnold SENIOR VIDEO PRODUCER Chris Joslin VIDEO PRODUCERS Devin Hance, Ross Kohan, Stephen Merenes ASSISTANT VIDEO PRODUCERS Veta Chan (Hong Kong), Leo Cheng (Hong Kong) EXECUTIVE ASSISTANTS Sharon Lawrence, Carmen Melendez, Hildegarde P. Vilmenay COPYROOM Maria Carmicino, Lauren Goldstein PRODUCTION Sigrid Anderson BUSINESS LEADERSHIP

CHIEF EXECUTIVE OFFICER

Alan Murray

CHIEF OPERATING OFFICER Lisa Cline CHIEF REVENUE OFFICER & PUBLISHER Michael Schneider CHIEF FINANCIAL OFFICER Anastasia Nyrkovskaya CHIEF TECHNOLOGY OFFICER Jonathan Rivers CHIEF MARKETING OFFICER Michael Joseloﬀ VP, ADVERTISING Lindsey Kintner VP LIVE MEDIA SPONSORSHIP Monica Sembler SVP, SALES AND MARKETING, ASIA-PACIFIC AND MIDDLE EAST Khoon-Fong Ang SALES, NEW YORK Tim Mullaly, Elizabeth Parks, Hannah Showak, Sarah Weitzman, Ron Moss (business development director),

Joel Baboolal (business development manager) SALES, MIDWEST Gina Czupryna, John Winterhalder SALES, WEST Julia Keefe, Dannygail Dean (sales assistant) SALES, SOUTHEAST Courtney Cofield (WNP Media) SOUTHWEST Kailey Klatt (WNP Media) SALES, ASIA-PACIFIC Eric Cheung (director, Hong Kong), Amanda Shao (director, Beijing), Ivy Qu (director, Shanghai), Amy Wu (assistant) SALES, EUROPE Rupert Turnbull PARTNERSHIP MARKETING Sheyna Bruckner (vice president), Heather Albano, Giselle Peled (directors),

Alice Naser (manager), Marisa Bertrando (associate manager) PARTNERSHIP MARKETING, ASIA-PACIFIC Kimberly Kam (director, Asia-Pacific), Annie Chan (Asia-Pacific), Dolly Zhang (Asia-Pacific), Andersen Chen (Beijing) FORTUNE BRAND STUDIO & COMMERCIAL CREATIVE SERVICES David Lennon (executive creative director), Megan Gilbert (executive editorial director),

Lauren Chomiuk (managing editor), Kim Coyle (head of design), Gregory Leeds (design director), Kelly Smith (associate content producer) CONSUMER GROWTH & CRM Julie Sun (executive director), Melissa Cook (director), Janey Sherlock (manager) REVENUE OPERATIONS & ACCOUNT MANAGEMENT Austin Kopplin (senior manager), Breanna O’Neill, Sarah Williamson (managers) LIVE MEDIA Terence Burke (SVP, content), Delwyn Gray (VP, production), Elizabeth Tighe (VP, marketing and member services), Paul Casey (executive director, marketing), Ashley Alebiosu, Holly Brockerhoﬀ, Diana Connors, Janis Foerster, Sarah Green, Andrea Harasymowicz, Nikki Lustrino, Huiyi Mai, Katie Mandara, Ravi Rampatsingh, Ann Roche, Cindy Shieh, Sarah Worob, Fiona Xu (Asia-Pacific) COMMUNICATIONS Alison Klooster HUMAN RESOURCES Mike Kiley (SVP) LEGAL Steven Weissman (general counsel), Judy McCool (assistant general counsel), Laura Bowman (paralegal) FINANCE Alison Fried (VP of strategic initiatives & finance), Melissa Goldman (controller), Daniel Seon (director of financial planning), Alan Wong (director of finance, Asia-Pacific), Paula Esposito (comp finance and HR manager), Kevin Tang (accounting manager), Tyler Cristy (senior associate) HUMAN RESOURCES, ASIA-PACIFIC Doris Lee (manager) PARTNERSHIPS, LICENSING & SYNDICATION Jim Jacovides (VP, licensing & development), Nadine Ghosn (digital content manager) DIGITAL PRODUCT AND ENGINEERING Shameel Arafin (VP, product), Brandon Allen, Jeﬀ Billark (head of IT), Russell Brown, Peter Cheung (Asia-Pacific), Brian Childs, Rafael da Costa, Dave Geller, Shawn A. Lewis, Jimmy Mao, Sin Nam, Johrten Sternberg, Alexia Timon, Christopher Volpe CIRCULATION, ASIA-PACIFIC Winnie Ng (marketing services manager), Adrian Andaya (circulation manager), Wing Mak (production manager, Asia-Pacific)

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MAKING A CONNECTION As CEO of Verizon (No. 20 on the Fortune 500), Vestberg passed on a dream career in sports to make a play to build America’s biggest 5G network.

F O R T U N E J U N E /J U LY 2 0 2 1 2 1

The Conversation HANS VESTBERG

For most of the cellular era, Verizon has held a comfortable perch as provider of the nation’s best voice and data network. But the race for 5G dominance could change everything, so CEO Hans Vestberg isn’t resting on his company’s laurels. The Swede— who is Verizon’s first CEO from outside the Bell System—sat down to talk about the future of wireless at the company’s Manhattan HQ. INTERVIEW BY AARON PRESSMAN T H I S E D I T E D Q & A H A S B E E N C O N D E N S E D F O R S PAC E A N D C L A R I T Y.

A C - S U I T E R E P E AT

Tackling inequities like the digital divide is about “getting people an equal chance, regardless of where they live or were born.”

When you left Ericsson 1 in 2016, was the plan to take another corner office job? And so soon? VESTBERG: My dream was to work

with sports, so I became the chairman of the Swedish Olympic Committee. That was my focus. But the focus went away pretty fast, because I got called by Verizon. In the beginning, we discussed my becoming a board member; it turned out pretty quickly to be an offer to run technology and IT. I did that [starting in April 2017] and commuted almost for a year. I went back and forth to Sweden, maintaining the chairmanship for the Swedish Olympic Committee. After that, it turned out that, as I used to say, I was the last man standing in the corridor at Verizon.

the inception of my career, whatever boss I’ve had, I’ve always done a paper that says, “This is what I’m going to do,” just to know that we don’t have a mismatch. I did my ﬁrst boss contract in 1993 in Chile, where I was head of an accounting department with three people [at Ericsson]. It was ﬁve bullet points for my manager. That’s when I learned that, wow, this is powerful. So when I got the job as CTO, I wrote a white paper on where I thought the technology was going to go. And I did the same when I was a CEO candidate. I divided everything into three pieces: What do we want to preserve, what are we going to strengthen, and what do we want to transform. I knew that within the company I was a fairly unknown Swede coming in, not coming from the roots of the company. So it is very important to get the team and the people with you. I also wanted to have a four-stakeholder strategy or vision for society, customers, employees, and shareholders.

The Conversation So that was 2018, when you were named to succeed Lowell McAdam as CEO. At the time, you won the board over by writing a paper you called “Verizon 2.0.”

I always do a “boss contract.” Since PHOTOGRAPH BY MACKENZIE STROH

TH E C O NVE R SATI O N — W I R E L ES S

2 2 F O R T U N E J U N E /J U LY 2 0 2 1

What did your parents do when you were growing up? My whole family are police officers. My father, my brother, my grandfather. And the only one that decided to stick out from it was my mother. She worked for the [Swedish] IRS. So you can say that my whole family are public servants. I’m the only one that has ever gone to university in my family. So yeah, it’s a different background—I was raised by a tough police officer. PA R T N E R I N G U P

[Editor’s note: This interview was conducted before AT&T announced it was spinning off WarnerMedia. We followed up with Vestberg to discuss the news; some of his comments are incorporated below.] Your rivals, AT&T and Comcast, made huge bets on acquiring entertainment companies. Now, AT&T seems to be backtracking on that strategy with its WarnerMedia news. 2 Meanwhile, your entertainment play has been built around partnerships, like giving some of your top wireless customers a free year of Disney+. Why go that route?

I have certain assets that the content companies don’t have, and there are certain assets you need to run the content companies that I don’t have. And when I did that ﬁrst deal with Disney, they were going direct to the consumer. I said, “Okay, what’s your distribution? Well, we want to build it up. We have a great opportunity: I serve more consumers than anybody else in this market, and I have a network that can manage all the content that you have. So why don’t we go together?” And we made an exclusive for my customers. Whatever I bring in, I get the bounty. So suddenly, I get

BET WEEN THE LINES (1) Life B.V.— before Verizon:

Vestberg served as CEO of Swedish telecom Ericsson for seven years, stepping down in July 2016. (2) Riding the M&A merry-goround: Comcast

paid $30 billion to acquire NBCUniversal from GE in 2011. AT&T acquired Time Warner for $109 billion including debt in 2018. On May 17 it said it plans to spin oﬀ what’s left of that company, now called WarnerMedia. (3) One-stop streaming: Verizon

customers on more expensive wireless plans can get from six to 12 months or more of free service for Disney+, Hulu, ESPN+, Apple Music, and Discovery+. (4) Log on, write oﬀ: Verizon’s plans

to use customer data to improve ad targeting on AOL and Yahoo floundered after leadership decided to give users the choice to share their info: Most opted out. In December 2018, Verizon wrote oﬀ $4.6 billion of the $9 billion it paid for the two Internet properties.

the payment for actually monetizing my network and my distribution. We did that also with Discovery; we did it with Apple Music. 3 I think all three were a huge success. These guys are far better than us on crafting the content, managing and making the right capital allocation. And I’m far better on distribution and on capital allocation for the network. We remain focused on our strategy. Whether our competitors change their strategies along the way, we will continue to meet them head-on, as we’ve always done. To be fair, Verizon hasn’t always taken the partnership approach. Starting in 2015, the company attempted to build its own Internet empire with AOL and Yahoo. On May 3, you announced that you’re selling a majority stake in those businesses to Apollo Global Management. Why sell?

Initially, the plan was that [AOL and Yahoo] should get access to all the wireless customer data [to use for targeting ads]. But that wouldn’t work for privacy reasons, so that plan was impossible to execute. We decided to write off the majority of the assets. 4 Then we said, “Let’s rebuild this to be a great ad platform and see that we have great traffic.” It took us two and a half years to get there. And by one year ago, we had consolidated seven different ad-tech platforms, taking out probably $2 billion in costs. Then COVID came, which of course was a blow for advertising, but for the digital usage of Yahoo Sports, et cetera, it was an uptick. That’s when we started having inbounds from people who wanted to buy the business. And we said, “Okay, let’s ﬁnd somebody that can take this to the next level and invest even more in it.” Verizon has put a huge focus on 5G, but is anything really happening with the technology for consumers? Where is 5G right now compared with where you want it to be?

What people don’t realize is that

TH E C O NVE R SATI O N — W I R E L ES S

2 4 F O R T U N E J U N E /J U LY 2 0 2 1

we got our ﬁrst 5G iPhone just ﬁve months ago. So I understand that people say, “Wow, nothing’s happening.” But the ecosystem is there now, from the network, to the chipsets, to the phones coming out. We have 120 million Verizon customers and they have 10 million 5G phones. So you can understand that we are just at the beginning 5 . But now we see the uptake. When people are coming into the store, they buy 5G phones now. The ecosystem is happening. B R I D G I N G T H E D I G I TA L D I V I D E

The pandemic underlined the fact that not everyone has adequate Internet connectivity. Some people have no access; for some it’s too much money. Now President Biden is proposing a $100 billion broadband plan. 6 Do you support it?

In COVID, we saw vulnerabilities in our society. It doesn’t matter whether you’re in the U.S. or in Europe, or of course we already saw it in Africa and Asia. Now you can see that in two ways: a big problem or the greatest opportunity to scale—getting people an equal chance, regardless of where they live and regardless of where they’re born. That’s where I start. We work a lot on the digital divide. I personally do it on a global basis, and I’ve done it for 15 years. 7 At Verizon, we will work ﬁrst building out networks in the rural areas. We have by far the broadest network in the industry. We also have low-cost plans for low-income families; we have Fios for 20 bucks. So we do a lot on accessibility and affordability. Now the industry is expanding more and more home broadband with wireless and some ﬁber as well. So we’re coming farther out. And we will do that with private money. On affordability, I think most important is a long-term federal subsidy for low-income families, so they can procure the broadband they need.

BET WEEN THE LINES (5) Future of 5G:

At its March 10 investor day, Verizon promised to cover 100 million people with fast 5G service within 12 months, 175 million people by the end of 2023, and over 250 million people in 2024. (6) Online infrastructure: Part of

Biden’s $2.3 trillion infrastructure proposal, the broadband plan may include funding for government and nonprofits to build their own networks, which has not been popular with the industry. (7) Global connections: Vestberg was

a founding member and is a current commissioner of the Broadband Commission for Sustainable Development, a joint eﬀort by the International Telecommunication Union and the United Nations to help spread Internet service to unconnected regions of the world.

You have one of the largest workforces in the country. How did you work during the pandemic?

We had 20,000 people who never could work from home. So I was afraid in the beginning that I’m going to tell 120,000 people, “Sit at home, be safe,” and I have 20,000 to tell, “Hey, guys, you need to be out there.” So we decided that we’re going to talk to our employees every day at noon for 30 minutes. We called it “Up to Speed: 30 Minutes.” At times we had 100,000 people a day tuning in. I was on every day for six months, myself. I wanted to have passion for the people who were in the ﬁeld. But I also wanted to tell the people not in the ﬁeld, “You need to stay home, but we’re still a team.” I heard that you very carefully track how you spend your own time as CEO. What system do you use, and why do you do it?

In 2009, at Ericsson, we decided there’s six things you need to do as a CEO. So I said, “Let’s do a forecast of what percentage of time I should be doing each of them.” Since then, I’ve measured every hour I work. There are three external and three internal things. The external ones are being in big scenes, meeting shareholders, meeting customers. Whenever it’s something where you say, “I am the only one at Verizon who can do it.” Going onstage with [Apple CEO] Tim Cook [to announce the ﬁrst 5G iPhone], nobody else could do that. Internally, the three areas are about talent, strategy, and governance. And I measure them in order to see that I actually spend the time on the most important things. Because it’s very easy in a company like this, to get bogged down on one big issue. But you know, there should be other people solving it, and you should actually attend to things that they cannot do. So that’s how I’ve deﬁned my work—and still do today.

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SUSTAINABILITY

INNOVATION

Sheybarah island in Saudi Arabia’s Red Sea where travel is enhancing the local eco-system

A VISION OF BAREFOOT LUXURY Taking shape on the pristine shores of the Red Sea, amid the breathtaking beauty of uninhabited islands, untouched coral reefs, and desert canyons steeped in history, a stunning new destination is redeﬁning luxury tourism and sustainable travel for the post-Covid age. As they prepare to welcome their ﬁrst guests at the end of 2022, the developers of The Red Sea Project in Saudi Arabia are creating a world where travelers will enjoy authentic and unforgettable experiences under a never-ending sky. Whether hiking through dramatic landscapes, discovering ancient heritage sites, or exploring the wonders of thriving coral reefs that teem with marine life, visitors will take with them memories and emotions that will last a lifetime. In this inspiring new tourism model, the presence of these travelers will help restore and regenerate the precious biodiversity of the Red Sea region, home to mangrove swamps, seagrasses, and fragile populations of rare seabirds and turtles. This is what John Pagano, CEO of The Red Sea Development Company, likes to call the project’s “natural capital,” which he and his colleagues are passionate about protecting and cherishing. By 2040, the developers aim to increase the conservation value of this extraordinary ecosystem by 30%. “We don’t want to just maintain the status quo here, but also enhance the destination,” Pagano explains. “We believe that nature is our most valuable asset.” Of the 90-plus islands that comprise this unique environment, 75% will remain completely undeveloped and nine have been designated areas of special conservation

interest. There will be a strict cap on visitor numbers, all single-use plastics will be banned, and no waste will be sent to landfill. The entire site of almost 11,000 square miles will be powered by renewable energy. Electricity generated by wind turbines and solar panels during the day will be stored in the world’s largest battery storage system for use at night, which will eliminate the need to draw on the national grid for power generated by fossil fuels, supporting their bid for carbon neutrality. Meanwhile, new plantations of mangroves and algae will sequester carbon from the air and offset emissions generated by visitors on their journeys here. Pagano’s vision of regenerative tourism at this exceptional destination is energizing hospitality companies and financers around the world. Construction is already underway on the first hotels and on an international airport, designed by Foster + Partners, that will have capacity for one million visitors a year. With a quarter of a billion people within a three-hour flight, Pagano is confident that The Red Sea Project will soon help the kingdom achieve its target of generating 10% of national GDP from tourism by 2030. With $1 billion already spent, investors are lining up to participate in a project that will put Saudi Arabia on the global tourism map and blaze a trail toward a whole new paradigm for exclusive travel experiences. “The optimism and energy here are amazing. This is not just another resort development,” Pagano says. “It is something truly unique. I believe that the world will follow our lead and embrace our vision of the future of luxury travel.”

WE BELIEVE THAT LUXURY TRAVEL WILL BE GREENER, SMARTER, AND LESS CROWDED. WE ARE PUTTING THE ENVIRONMENT AHEAD OF COMMERCIAL GAIN, AND THE TRAVELERS OF TOMORROW WILL REWARD US.” — JOHN PAGANO, CEO, THE RED SEA DEVELOPMENT COMPANY (TRSDC)

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MAPPING THE FUTURE OF BUSINESS

Lidar sensor technologies are helping organizations and devices adapt to the changing world around us.

LIDAR (LIGHT DETECTION AND RANGING)—A REMOTE SENSING solution that uses rapid pulses of light to detect objects and determine their position and velocity—is one of today’s most advanced mapping technologies. Operating in a similar manner to radar (only with laser light instead of radio waves), it’s quietly ﬁltering its way into millions of consumer devices, from smartphones to artiﬁcially intelligent speakers. Lidar is also increasingly being used to fuel innovative breakthroughs in autonomous vehicle operation, robotic automation, and other ways of navigating a physically distanced world, helping countless organizations remap the future of commerce. Lidar technology has been around since the 1970s and was

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originally used for agricultural and geospatial mapping. It was also championed by government agencies such as the U.S. Department of Defense and NASA, which used the technology to map Mars. By the mid-1990s, lidar scanners were being used to topographically map the Earth’s surface, helping governments plan roads and construction companies find the best places to erect buildings. It’s still a popular tool for manufacturers and meteorologists, but advancements in the field are rapidly expanding the industry’s footprint. Drone operators use lidar to survey buildings and landscapes, and insurance companies leverage it to weigh risk factors and survey site damage from environmental hazards. Robotic vacuums use lidar to intelligently map floor plans, and augmented reality smartphone applications allow special effects to be overlaid on household rooms through the use of a lidar scanner. Giving Business an Edge Companies in countless industries, such as utility providers, financial institutions, and insurance firms, are already benefitting from advances in lidar technology, which provides more accurate results in less time, automates processes, and is cheaper than its alternatives. Lidar allows various kinds of consumer electronics to become more self-aware and have greater visibility into changing conditions around them, thanks to a level of detail and efficiency that other sensors can’t match. Take the field of engineering, where, according to recent coverage by the San Antonio Business Journal, survey data can now be collected 60% to 80% faster by smaller teams and for half the cost because of lidar. “Lidar-based solutions allow companies to work more safely and efficiently while also using their resources more effectively,” notes Chinmoy Saha, cofounder and CEO of Green Grid, a climate-focused digital transformation solutions and professional services provider. “Businesses that utilize these tools can be more profitable, resilient, and sustainable,” adds Green Grid cofounder and executive vice president Jeff Pickles. Lidar not only allows organizations to create virtual models and maps of surrounding environments and objects with pinpoint accuracy—as well as detect changes in these digital models in real time—its sensing technology also helps

address growing physical safety and distancing concerns (e.g., in airports and hospitals, where it can help track passenger and patient movement). And many enterprises now leverage lidar to conduct remote site inspections (such as those on America’s miles-long power line grid) safely and cost-effectively. Likewise, numerous companies are now using lidar to guard against environmental disasters. This includes energy providers that are leveraging Green Grid’s Instant Situational Insights™ for Utilities (iSIU™) platform, which uses artificially intelligent fusion sensors to safeguard against avoidable infrastructure failures, floods, and wildfires in real time. Myriad firms are also applying lidarbased solutions to measure crowd density and manage workflows (e.g., at sports arenas and public venues) or to automate factories, warehouses, and many common business practices, from delivery to distribution. But perhaps nowhere else are the technology’s advanced tracking capabilities as readily visible as in the field of self-driving vehicles. Armed with new advances in lidar, such as Aurora’s next-generation FirstLight Lidar, autonomous vehicles continue to operate safer and smarter. Using the frequency modulated continuous wave (FMCW) lidar approach, vehicles powered by the Aurora Driver—including passenger sedans, trailer trucks, minivans, and more— can now see well beyond 300 meters (double to triple the traditional range) and respond at fast-moving highway speeds. “Lidar provides incredible accuracy when it comes to detecting and tracking

objects in real time, allowing vehicles to safely operate at high speed,” says Randy Reibel, vice president of lidar for Aurora. “It can also be used to help improve sensing capabilities on automated and artificially intelligent technology solutions of all kinds. On-chip technology such as Aurora’s is designed for scalability and enhanced performance specific to the Aurora Driver, so it can safely power everything from self-driving trucks to autonomous taxi fleets.” A Market Primed to Explode Lidar was one of the hottest topics at this year’s Consumer Electronics Show. Given the technology’s growing presence in popular devices, combined with its exponentially shrinking complexity and cost (one tech company announced last year that it planned to sell an automobile-grade lidar solution for just $100), it’s easy to see why it’s become so sought-after. Lidar has the potential to power the future of smart cities, assist with emergency and fire rescue services, and help organizations in every field optimize productivity solutions and workflows. In fact, the market for lidar technology is expected to balloon to more than $10 billion and grow by more than 20% annually by 2025, according to market researchers Global Market Insights. With the market for lidar-based solutions having been described by Automotive World as “a technological arms race,” it’s clear that the future of business belongs to those firms best poised to capitalize on it. “Like human beings, high-tech devices need better modes of sensing in order to more effectively perceive the world around us,” says Aurora’s Reibel. “That’s what makes technologies such as lidar critically important to solutions that depend on automation and artificial intelligence. Lidar doesn’t just provide incredible accuracy but also the reliability and safety that businesses need to create sustainable competitive advantage.” ■

WHAT DO YOU SEE? WE SEE EDUCATION AS A LIFELONG JOURNEY. It starts with school, but it never really ends. The associated costs have sharply increased and now resemble longer-term budget items, such as housing and health care. Paying for education has become a major investment—one that often requires a strategy built for your specific needs. And, like most long-range investment strategies, starting early can make a big difference. morganstanley.com/education-planning

F O R T U N E J U N E /J U LY 2 0 2 1 2 9

THE BRIEF BUSINESS. DISTILLED.

R EC RU I T M E N T

The Battle for Talent After months of lockdown, millions are ready to test the job market, and the pandemic has drastically recalibrated their expectations. How can companies woo—or keep—the people they need?

GUTTER DUMMY CREDIT GOE S HERE

BY S. MITRA KALITA

ILLUSTRATION BY SELMAN DESIGN

3 0 F O R T U N E J U N E /J U LY 2 0 2 1

modestly, and wage gains remained strong. People furloughed or in uncertain job situations weren’t as likely to be searching. Now it feels as if everyone is. More than a quarter of currently employed Americans are looking for a new job, according to a Prudential Financial survey—leaving companies to sprint to make up for their sins of the past year, from furloughs to frozen salaries to Friday afternoon strategy sessions (why?). “We’re on the cusp of a signiﬁcant change,” says Meredith Perez, cofounder of job-hunting platform UCandu. “We’re coming

from a postindustrialized situation where people were seen as cogs in the wheel. Now experience and intellect are valued, but business policy hasn’t really caught up yet.” It’s not hard to locate the roots of current dissatisfaction. Laszlo Bock, cofounder and CEO of Humu, a tech company that sends “nudges” to managers to modify their behavior, rattles them off. “People will likely conﬂate having felt badly over the last year with their workplaces and want a fresh start,” says Bock, a former head of Google’s people operations. “Promotion was on hold at many organizations, so people may feel they need to go somewhere else to advance. People will have spent over a year apart from their teams and feel less embedded in their organizations, making it easier to leave.” Existentialism is also driving the antsiness. We have just come out of a period of making life-anddeath decisions, losing loved ones along the way as a constant reminder of what actually matters.

8.1M

Americans experienced a magnitude of job loss in March and April of 2020 not seen since World War II. Early in the crisis, economists at the Bureau of Labor Statistics earnestly wrote there was hope that “with government support, employers and employees could quickly return to prepandemic employment arrangements.” Now we know better. People are vaccinated, offices are reopening, mask mandates are lifted. But workers are making it clear that they expect something more than a “return” to the status quo ante-COVID. Instead, many are hunting for better opportunities, and companies face an intensifying war for talent—to retain and appease current employees and woo the best of the seekers. In the initial days of the pandemic, employers held the upper hand, as workers of the world united in fear and paralysis. The seesaw teetered, though, as the crisis continued. Expanded unemployment beneﬁts and eviction moratoriums made people feel less insecure about losing work; employers’ work-from-anywhere ﬂexibility gave a sense of leverage to those who stayed. After millions of women left the workforce, thanks to school schedules and the boss’s Zoom invites being so out of whack, employers began offering tutoring, childcare assistance, and mentalhealth support. We have yet to see how much of it will persist after the pandemic, but it all helped recalibrate employees’ expectations. Jed Kolko, chief economist of Indeed, notes that the labor market never became “un-tight” in the pandemic: The number of unemployed people per job opening rose only

SHARE OF C U R R E N T LY EMPLOYED WORKERS WHO PLAN TO LOOK FOR A NEW JOB AS THE PANDEMIC EASES

U.S. JOB OPENINGS AS OF MARCH 2021 SOURCES: PRUDENTIAL FINANCIAL; BUREAU OF LABOR STATISTICS

T H E B R I E F — T H E B AT T L E F O R TA L E N T

One-third of Americans know someone who died of COVID-19. The pandemic “was a thief in the night that just came and stole our sense of what is familiar,” says Robin Smith, a prominent Philadelphia psychologist. “We may not have felt good about how we were overworking. We were underpaid and underacknowledged.” But compared with the disorientation of the pandemic, she adds, “That was familiar.” Over time, embracing the unfamiliar has grown more comfortable for many. Taronay Roohafzaii, 26, says her “kick-start moment” actually came before the pandemic. Then a data analytics consultant at EY, she felt less than enthusiastic about new projects and wanted to pivot to product management. It was during the COVID-19 lockdown, though, that she finally acted. She concentrated on networking and enrolled in courses through Zeit, a career-discovery platform. Roohafzaii recently landed a job as a product manager for a fintech startup called Amount. In late May, she flew from her home in northern Virginia to Chicago to meet colleagues in person for the first time. She might relocate, she might not, but she credits the pandemic experience for getting her to move in the professional sense. “I don’t know if I would have made the jump to product otherwise,” says Roohafzaii. “The pandemic brought uncertainties, but also opportunities.”

IT’S NOT TOO late for employers to act; the question is where to start. One of the opportunities that employees prize most is the chance to keep working from home. In the Prudential Financial survey, 42% of current remote workers said that if their company doesn’t keep offering remote options, they’ll look for a job that does. Professionals surveyed recently for LinkedIn’s Workforce Confidence Index rated flexibility as more important than salary, benefits, or company culture. In late April and May, nearly a quarter of all job applica-

rewards managers can give employees is free: their gratitude. According to workplace consultant O.C. Tanner’s research, 79% of employees who quit their jobs say a lack of appreciation was a major reason for leaving. Studies also show workers are more motivated by recognition than money. Autonomy and a sense of self-direction matter too. After recently consulting with managers in the automotive industry, Bock recounts one leader’s Management 101 epiphany: “I should ask people what projects they want to work on.”

purpose, coming up with clear answers to questions like, “Why does your team exist? How does their work impact others?” The social justice movements of the past year are also shaping workers’ desires. Workforces are demanding not just more diverse ranks in leadership and hiring, but also more empathy, compassion, and understanding. They are unforgiving of hypocrisy and quick to call it out, in meetings or on social media. With HR and PR crises looming, more companies are trying to emphasize vulnerability

WE DO ALL THIS WORK TO UNDERSTAND OUR CUSTOMERS. WHY DON’T WE APPLY THE SAME LEVEL OF UNDERSTANDING TO OUR PEOPLE? MEREDITH PEREZ, COFOUNDER OF JOB-HUNTING PLATFORM UCANDU

tions on LinkedIn were for jobs explicitly advertised as being remote—up from 7% at the same time last year. (For Fortune 500 CEOs’ take on remote work, see our survey in this issue.) As many job-hoppers already know, there’s no better time to negotiate bumps in salary, perks, or location as when negotiating for a new job. The pandemic broadened beneﬁts programs to include work-from-home stipends, weekly yoga or meditation classes, as well as access to therapists and emergency funds. But one of the greatest

Another challenge for employers will be to connect individual actions to a company’s broader values and mission, says Hana Hassan, founder and CEO of Blackmaple.io, a global talent marketplace. “By default, organizations are always about scale and numbers, not human capital as humans ﬁrst,” Hassan says. A better way to frame a recruiting message, she suggests, is, “Here are these great people who built this great product, who built this great company.” Bock advises managers to lean into employees’ desire for

in leadership and greater access than before. “We do all this work to understand our customers,” says Perez of UCandu. “Why don’t we apply the same level of understanding to our people?” In the race for talent, every move right now has outsize importance. Bock says that “imprintable moments” that make lasting impressions on a company’s culture “happen a few times in a person’s career: starting a brand-new job, the ﬁrst time you become a manager.” The return to work after the pandemic, he adds, will be another.

CONTENT FROM MDU RESOURCES

PROFILE 2021 | FORTUNE 500

Building America Through Challenging Times MDU Resources provides energy and transportation infrastructure essential for daily life.

ONE THING THAT’S BECOME glaringly obvious over the past year is Americans’ heavy reliance on energy and transportation. These services are central to our ability to telework, stream entertainment, and have goods delivered to our homes. And without a company like MDU Resources, a big chunk of the country would be without the roads, heat, and power it needs. “The pandemic has really underscored that all of our lines of business are essential,” says David L. Goodin, president and CEO of MDU Resources Group, Inc., the Bismarck, N.D.–based corporation whose businesses include

“THE PANDEMIC HAS REALLY UNDERSCORED THAT ALL OF OUR LINES OF BUSINESS ARE ESSENTIAL.” DAVID L. GOODIN PRESIDENT AND CEO MDU RESOURCES

regulated electric and natural gas utilities, natural gas pipelines, and construction materials and services. “This held true not only on the utilities side but also on the construction activities side. Clients wanted to charge forward, whether that meant an electrical overhaul for a private company or a state transportation project.” MDU’s mission of “building a strong America” rests on the fact that a strong infrastructure is the economy’s lifeblood. Now, in addition to traditional infrastructure projects, like those tied to MDU’s construction materials business, construction service projects—such as building e-commerce infrastructure with broadband connectivity—are becoming increasingly common as technology rapidly changes how energy is consumed. Established in 1924 as a small electric utility serving a handful of farm communities on the border of Montana and North Dakota, MDU Resources is now a multibillion-dollar corporation with operations, customers, and employees across 46 states. Last year, the company reached an all-time employment peak, at nearly 16,000. “I feel very proud that we could sustain employment levels, keep everyone on payroll, and avoid furloughs,” says Goodin. “I’m also proud of our team and their dedication to safely providing critical products and services. Their efforts contributed to a ﬁnancially successful year.” In 2020, MDU experienced an overall earnings increase of 16%, the secondbest outcome in its 97-year history. Of those earnings, 65% came from construction materials and services. The Biden administration’s recent proposal of a $2 trillion infrastructure package, which includes $100 billion to update the country’s electric grid, places MDU in a position for further growth. Goodin says, “Our recent earnings coupled with the proposed governmentenhanced initiatives give me a strong sense of conﬁdence looking ahead.” ■

Our legacy of Building a Strong America® began in 1924 when we brought energy to towns on the Montana-North Dakota border. Today, from our headquarters in Bismarck, North Dakota, our 16,000 employees operate in 46 states, delivering energy and providing construction materials and services. We power homes, businesses and industry with electricity and natural gas. We connect homes, factories, offices and stores with wiring and natural gas pipelines. We keep our country moving by building and maintaining the transportation network of roads, highways and airports. We are Building a Strong America®, for today and tomorrow.

From FORTUNE ©2021 FORTUNE Media IP Limited. FORTUNE and FORTUNE 500 are registered trademarks of FORTUNE Media IP Limited and are used under license. FORTUNE and FORTUNE Media IP Limited are not affiliated with, and do not endorse the products or services of, MDU Resources Group, Inc.

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THE BRIEF

H E A LT H

Vaccine Queen Karen Lynch took the top job at CVS Health just as the company confronted its biggest and most critical challenge: vaccinating America. BY EMMA HINCHLIFFE

IT’S PROBABLY fair to say that bringing on a new CEO in the midst of the most vital and highproﬁle moment in your company’s history is usually, well, not ideal. But when Karen Lynch became head of CVS Health in February, just as the company’s role in the COVID-19 vaccination push ramped up, neither investors nor industry watchers batted an eye. The former Aetna president, who joined CVS in 2018 through its acquisition of the insurer, struck many as perfectly suited for the moment. Throughout her career at Cigna, Magellan Health Services, and Aetna, Lynch made a name for herself as someone capable of both wrangling complicated projects (she ran the Aetna-CVS integration) and handling crises (she led CVS’s early response to COVID-19). Now, four months into the job, she has overseen 20 million of the total 274 million vaccinations administered in the U.S. It’s an unprecedented job for an unprecedented leader. In running the No. 4 company on this year’s Fortune 500 list, Lynch makes a bit of history of her own. CVS is the highest-ranking company ever to be led by a female chief executive in the

Karen Lynch sets a Fortune 500 record: At No. 4, CVS Health is the highest-ranked company ever to be led by a female CEO.

PHOTOGRAPH BY JEFFERY SALTER

67-year history of the list. Fighting the pandemic has also helped Lynch move the company closer to the ambitious goal set by her predecessor, Larry Merlo: transform CVS from drugstore chain to health care titan. Nine percent of ﬁrst-time customers who came to CVS for a COVID test also ﬁlled a new prescription. “Vaccines and testing have put CVS on the map to be a health destination,” says Lynch. The revenue doesn’t hurt either. While CVS declined to disclose how much money it has made administering vac-

cines, the government recently raised its reimbursement rate from $28 to $40 per dose. Lynch is also looking ahead to the post-COVID future. In 2022, the company will debut its ﬁrst co-branded Aetna/CVS insurance product, hoping to woo the market of some 15 million who buy coverage on the Affordable Care Act exchanges. “CVS is a trusted brand,” Lynch says of the decision to carry the name into the insurance realm. “We’ve made it more trusted with the work we did on testing and vaccines.”

CONTENT FROM EDWARD JONES

THE POWER OF PARTNERSHIP The not-so-secret reason behind Edward Jones’ success in building trusted client relationships? Its unique, personalized—and partnered— approach to investing.

“I get to be a partner in the work and success of the firm. It creates a spirit of community.” SARAH KARPICUS SENIOR BRANCH OFFICE ADMINISTRATOR EDWARD JONES

BACK IN 2003, FINANCIAL ADVISOR DAVID TAM was drawn to St. Louis–based investment firm Edward Jones because of its unique branch team business model, a structure consisting of a financial advisor and a branch office administrator working in tandem. Senior branch office administrator Sarah Karpicus joined his office in San Diego about a year later, and the two have worked together ever since. This personalized approach to investing allows the branch team to build trusted relationships with their clients, while delivering superior value. It’s a model that doesn’t exist at other financial institutions—and it’s not only clients who benefit from it. “Being a part of a branch team was unique for me as a new financial advisor just starting out,” Tam says. “But I figured if the firm was willing to invest in rookies, it would probably treat its veterans pretty well. Two decades later, I haven’t looked back.” Today, Tam and Karpicus’s branch ranks in the top 3% of the firm. As the branch has evolved, Karpicus says her role has evolved too. She handles everything from supporting business strategy and operations to facilitating hospitality and event planning. Karpicus has also benefited from another aspect of this one-of-a kind model: becoming a limited partner at Edward Jones by purchasing a small equity share in the firm. “I get to be a partner in the work and success of the firm,” she says. “It creates a spirit of community.” Collaboration is a hallmark of the firm’s culture, and both Tam and Karpicus believe their long-term,

“I figured if the firm was willing to invest in rookies, It would probably treat its veterans pretty well. Two decades later,I haven’t looked back.” DAVID TAM FINANCIAL ADVISOR EDWARD JONES

team-based approach has allowed them to better serve clients and build deep, lasting relationships over time. Typically, Tam works on clients’ bigpicture financial goals, while Karpicus helps with carrying out the administrative aspects of their strategies, such as transferring an account or dealing with estate issues. Often that requires calling other financial institutions on their clients’ behalf. Karpicus has seen first-hand how impersonal that type of interaction can be, which has made her appreciate the high-touch service that the Edward Jones model offers. “Clients know that if they call our branch, they’re going to get one of us. They know our names; they know what we did over the summer,” she says. “We are real people to them, and we have a personal relationship.” That human touch and the deep trust it engenders allow Edward Jones financial advisors not only to help clients reach their financial goals but also to become a meaningful part of their lives and communities. From meeting new babies to attending weddings, Tam has witnessed many of his clients’ major life milestones. “I’m fortunate to create long-term relationships with our clients,” Karpicus says. “It feels like an extended family.” ■

Bruce Biedar, CFP® Financial Advisor Chicago, IL

THROUGH DEPRESSIONS AND RECESSIONS, WE THRIVE. Since 1922, we’ve not only survived through turbulent markets—we’ve grown. Namely, by pursuing a long-term investment philosophy, and fully supporting our financial advisors and associates. All while remaining one of the industry’s last privately held partnerships, accountable only to our 7 million clients. Meet the Edward Jones of now.

Visit edwardjones.com/knowmore Member SIPC Edward Jones does not discriminate on the basis of race, color, gender, religion, national origin, age, disability, sexual orientation, pregnancy, veterans status, genetic information or any other basis prohibited by applicable law.

Content by the Buzz Business

CHANGE AGENTS

A PASSION FOR TECHNOLOGY Four days after graduating college in Saudi Arabia, serial entrepreneur Albara Hakami founded his first business. Seven years and several companies later, he’s just sold his latest software startup to one of the world’s largest providers of business payments. “I am a competitive person who always needs to be doing something new and pushing my limits,” Albara says. “I have been very lucky to work with people who share my two passions— software engineering and challenging yourself.” Albara launched his first two startups with university friends back in 2013, focusing on Saudi Arabia’s flourishing social media scene. Their award-winning app, Feelit, was an innovative social media platform that enabled people to share their feelings and connect with each other on a more emotional, intuitive level. Another startup, Cheflr, tapped into Saudis’ love of food and cooking and signed up more than 250,000 users in just a few months. Even at that early stage of his journey, Albara attracted investment from Silicon Valley, and moving to San Francisco was the natural next step for the young entrepreneur. He chose the fintech sector for his next venture.

As a child growing up in Saudi Arabia, Albara Hakami was fascinated by the limitless possibilities of information technology and the Internet. Today, he is one of the most prominent representatives of a new generation of Saudi entrepreneurs who are embracing the opportunities of digital technology and transforming everyday life in their country and beyond.

WITH ALL THE REFORMS THAT ARE NOW TAKING PLACE, SAUDI ARABIA IS ON TRACK TO BECOME ONE OF THE MOST INNOVATIVE AND ENTREPRENEURIAL COUNTRIES IN THE WORLD. — ALBARA HAKAMI, CO-FOUNDER, ROGER.AI, FEELIT, CHEFLR

Content by the Buzz Business

Q&A

Fast-moving Saudi entrepreneur Albara Hakami is always on the lookout for fresh challenges.

“Finance wasn’t a sexy field back in 2016, and people were scared of it,” he remembers. “But when I met a couple of bright entrepreneurs, Cathrine Andersen and Christian Rasmussen, who wanted to use artificial intelligence [AI] to automate bill payments for small- and medium-size companies and accountancy firms, it was a new challenge I couldn’t turn down.” At the beginning of 2021, the company they founded, Roger.ai, was acquired by global business payments company FleetCor, which says that the acquisition will extend its portfolio of accounts payable automation solutions to small businesses, enabling them to automate their manual payment processes. Albara, a resident of Austin, Texas since the acquisition, remains fiercely proud of his Saudi heritage and upbringing. As a tech entrepreneur, he is continuously inspired by the social, economic, and technological changes that are transforming his homeland. “There is so much talent coming out of the country,” he says. “We are becoming a more independent and more entrepreneurial people, and

we are seizing new opportunities. I can’t wait for the future.” What’s it like being a Saudi in the U.S. tech scene? It is a unique experience. There are not many Saudis here, but the ones I meet are always great people and we have amazing conversations. I still have a strong Saudi identity. My country and my family made me the person I am today. How often do you go back to Riyadh? I go home regularly and try to keep track of all the cultural and social changes happening in Saudi Arabia. It is exciting to see the progress being made and to see so many young people starting up new businesses. It is happening everywhere you go in Saudi Arabia. We are ﬁnally unveiling our real identity to the world and unleashing our potential. What makes you tick as a tech entrepreneur? I am someone who always has an itch to start something new and to challenge myself. That can be changing country, changing city, or starting a new business. I need to push myself to the limit to grow as a person. I enjoy experiencing discomfort and facing challenges. It is something that inspires me and motivates me.

Was your pivot to fintech one of those challenges? Very much so. The nature of finance is that it is something people are afraid of. If you mess up a social media platform, you can fix things, but if you mess up a finance platform, you can lose other people’s money. It can be scary and challenging. That’s why I loved it. How do you feel about FleetCor’s acquisition of Roger.ai? We completed a successful Series A investment in 2019 for around $8 million. That helped us grow our user base, build up our team, and increase our profitability. The acquisition by FleetCor will take our platform to the next level; it means that even more businesses will be able to use the AI solutions we developed to replace manual payment processes with automated payments. AI is the future of accounting. What message do you have for other tech entrepreneurs in Saudi Arabia? Everyone is different, but what works for me and the people around me is to be a little bit crazy, a little bit brave, and just follow what you enjoy. Find your itch, find your inner voice, and follow it. What’s next for Albara Hakami? Wherever I am, I will continue to be entrepreneurial, to take risks, and to try to be brave when pursuing the things that I really believe in.

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The CEO Outlook: Upbeat in the C-Suite We asked the nation’s top CEOs about what’s on their minds as the pandemic eases. BY ALAN MURRAY

WHEN WE CONDUCTED this survey in the spring of 2020, Fortune 500 CEOs were pondering just how badly COVID-19 was poised to damage their businesses. This year, many ﬁnd themselves marveling at the speed of their recovery and at how robust the U.S. economy looks. The CEOs’ biggest concerns now include grappling with a transformed workplace culture in which more employees want or need to work remotely—with all the risks to cohesion, creativity, and cybersecurity that will entail.

COMING BACK FROM THE PANDEMIC CEOs of the Fortune 500 say 2021 is turning out to be a better year, in terms of both revenues and profits, than they would have predicted during the pandemic. But their answers also suggest that how (and where) their companies work has profoundly changed. REVENUES IN 2021 SO FAR, ACCORDING TO CEOs

PROFITS IN 2021 SO FAR

53% STRONGER THAN EXPECTED

51% STRONGER THAN EXPECTED

31% AS EXPECTED

17% WEAKER THAN EXPECTED

SEEKING SMALLER SPACES 7% WILL NEED MORE OFFICE SPACE THAN IN THE PAST

19% WILL NEED THE SAME AMOUNT OF SPACE

VACCINATION REQUIREMENTS

WORKING 4 DAYS A WEEK REMOTELY IS BEST 3%

10% WILL REQUIRE VACCINATIONS FOR WORKERS

74% WILL NEED LESS SPACE

2–3 DAYS A WEEK IS BEST 53%

59% WILL NOT

THE MARKET TO BE IN

1 DAY OR LESS REMOTE IS BEST 39%

RETURNS VERSUS RESPECT

The CEOs overwhelmingly see the U.S. as having the best investment opportunities for the next year. In addition, many CEOs said they are reducing their exposure to the Chinese market for various reasons, including concerns about political and reputational risk. BEST INVESTMENT OPPORTUNITIES IN THE NEXT YEAR 83% RANK THE U.S. AS THE NO. 1 OPPORTUNITY

12% CHINA

When asked which company on the Fortune 500 they would most likely invest in, CEOs picked Amazon ... 17% 14%

1% EUROPE

BERKSHIRE HATHAWAY

TESLA

4% OTHER ASIA

AMAZON

THE RISK IS DIGITAL

19% CLIMATE CHANGE–RELATED RISKS

14% WEAKER THAN EXPECTED

THE RIGHT AMOUNT OF REMOTE

31% ARE UNDECIDED

In a question provided by Zurich North America Insurance, CEOs were asked to rank the risks that currently concern them most.

34% AS EXPECTED

66% CYBERSECURITY RISKS

17% POLITICAL INSTABILITY AND INEQUALITY

FORTUNE/ZURICH NORTH AMERICA INSURANCE POLL CONDUCTED MAY 3–14

MICROSOFT

APPLE

... but when asked which Fortune 500 CEOs they most admired, they leaned toward leaders of other companies.

17% 15% 12% 12% JAMIE DIMON JPMORGAN CHASE

ALBERT BOURLA PFIZER

DOUG McMILLON WALMART

SATYA NADELLA MICROSOFT

5% TIM COOK APPLE & FRED SMITH FEDEX

C O N T E N T F R O M AT&T

BUILDING THE BRIDGE

How AT&T is tackling the digital divide. Over the past three years, AT&T contributed $1 billion in low-cost broadband service and charitable contributions to the country’s underserved Communities. in april, it announced an additional $2 billion in investment.

MOST PARENTS OF SCHOOL-AGE CHILDREN ARE able to send their kids oﬀ to school each morning with backpacks, books, and pencils. But for many of them, there’s a gap they just can’t bridge on their own: the digital divide. Roughly 17 million students in the U.S. either don’t have a web-enabled device or lack internet access, making it difficult, if not impossible, to complete online schoolwork. Leaving children stranded on the wrong side of this chasm puts them at a disadvantage now and could create social strains and professional challenges years down the road. To help parents and students close this gap, AT&T, along with other companies, governments, and municipalities, is expanding access to technology and reducing the cost of technology among underserved communities.

A Gap Widened by a Pandemic When the pandemic shut down schools, educators adapted. Online videoconferencing, digital libraries, and other online platforms were implemented to replace the in-person learning experience. But not all kids could log on. Some families can’t aﬀord the cost of a

laptop or high-speed internet. Others live in areas that don’t have a broadband infrastructure. According to the National Education Association, Black, Hispanic, and Native American students, as well as those who live in rural areas, are less likely to have reliable internet access. With no internet at home, and with libraries and community centers closed, some students turned to smartphones, but the devices can be difficult to use to complete schoolwork. And even as students return to the classroom, those without devices or broadband access are still at a disadvantage. According to new research conducted by Morning Consult on behalf of AT&T, 70% of parents and teachers said their children or students were aﬀected by the homework gap due to a lack of technology. To cope, children use mobile devices (35%) or go to a friend or family member’s house to complete assignments (17%). Pew Research echoes these ﬁndings, with one-third of parents saying it is at least somewhat likely that their children cannot complete schoolwork because they can’t access a computer at home.

The Need for Collaboration The solution to this problem is complex, says Jeff McElfresh, CEO of AT&T Communications. He likens it to a three-legged stool, where all three legs are critical for balance. The first leg is building broadband networks, which includes both wireless and wireline networks, he says. The second is making sure connections are affordable for underserved populations. The third is promoting digital literacy—helping to ensure educators, as well as students, their parents, and their communities, are comfortable using the digital interfaces. The digital divide affects more than just the students who can’t do their homework online; it has long-term implications for jobs and the economy, McElfresh says. “When you give every individual the same opportunities and tools to learn, grow, and be productive, communities flourish. They have a stronger presence in the digital economy, and that’s what we’re trying to cultivate as a nation,” he adds. Addressing this gap takes commitment, collaboration, and a multifaceted strategy. That’s why AT&T and others are taking strides to narrow the divide. Over the past three years, AT&T contributed $1 billion in low-cost broadband service and charitable contributions to the country’s underserved communities. In April 2021, it announced an additional $2 billion investment to further those objectives over the next three years. And the AT&T programs are designed to address the digital divide from all three sides: accessible networks, affordability, and digital literacy. Part of the new $2 billion pledge makes it easier for students to connect to broadband. AT&T is extending discounted plans

to schools and is continuing its Access from AT&T program, which offers reduced internet rates for residents who qualify. The company is also participating in the Federal Emergency Broadband Benefit program through the Federal Communications Commission, allowing eligible customers to reduce their broadband costs temporarily through discounts. This year, AT&T is launching 20 Connected Learning centers in traditionally underserved communities, McElfresh says. The company will provide high-speed fiber and Wi-Fi, and it will ensure that the centers have laptops and tablets for students to use. Additionally, AT&T employee volunteers will be available for mentoring and tutoring, and students can learn virtually from collaborators like Khan Academy. AT&T is also leveraging the creativity from its entertainment unit, WarnerMedia, to develop a digital learning platform with educational content and a curriculum that students can use at school or at home to improve academic success. Narrowing the digital divide means getting parents, families, and communities involved too. AT&T works with the Public Library Association to offer digital literacy courses that help parents and families advance their technology skills, so they can continue to grow alongside their children. As technology advances, the digital divide may always exist to some degree. Still, the quality of broadband networks in the U.S., even in the most challenged parts of the country, is something to be proud of, says McElfresh. “With that success, let’s lean in a little bit harder. Let’s solve this problem once and for all, and do it from a position of success and strength.” ■

“when you give every individual the same opportunities And tools to learn, grow, and be productive, communities flourish. They have a stronger presence in the digital economy, and that’s what we’re trying to cultivate as a nation.” JEFF MCELFRESH CEO AT&T COMMUNICATIONS

Helping to close potential and su

FOLD

e the gap between uccess. AT&T is narrowing the digital divide in education.

FOLD

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The Negotiator You Hope You’ll Never Need An alarming surge in ransomware attacks has spawned a mini-industry of specialists who handle the dirty work of bargaining with hackers on behalf of corporate clients. BY ADRIAN CROFT KURTIS MINDER HAS some advice about how to negotiate with criminals who extort millions of dollars by crippling companies’ computer systems and stealing their data: Don’t call them “bad guys.” “The bad guys know they are bad guys—they are trying to pretend to be businesspeople,” says Minder, who, as CEO of cyber-intelligence specialist

GroupSense, has negotiated on behalf of at least two dozen organizations targeted with so-called ransomware. “As long as you pretend with them that this is just a normal business transaction, it goes better.”

Imagine the nightmare scenario: You start work one day but can’t access crucial customer information on your computer because hackers have encrypted your files and are demanding big money in exchange for the decryption key. In most cases, the attackers also steal sensitive company data and threaten to publish it. At best, the extortion demands could severely disrupt your company’s operations for days. At worst, they could ruin its reputation and put it out of business. Companies that fall victim often seek help from a mini-industry of ransomware negotiators who are experienced at responding to such attacks. Their job is to talk with the hackers, ideally securing a hefty reduction in the ransom in the process. They also arrange payment in Bitcoin or another cryptocurrency, the hackers’ preferred form of payment because it’s hard to trace. Ransomware attacks have thrived during the COVID pandemic, their numbers rising 62% globally last year to 305 million, according to cybersecurity firm SonicWall. Another security firm, PurpleSec, said the worldwide cost to businesses in 2020 was $20 billion, up from $11.5 billion a year earlier. The work-from-home trend during the pandemic, when many employees PHOTO ILLUSTRATION BY GUILLEM CASASÚS

used personal devices to access company systems, has given cybercriminals a host of new vulnerabilities to exploit. All it takes is to get employees to unwittingly download malicious software by opening an email attachment, clicking on an ad, or following a link. Small companies, without dedicated IT security staff, have traditionally been seen as easy targets for ransomware gangs. But experts say hackers are now going after larger companies, including oil, logistics, and manufacturing businesses, along with government agencies, hospitals, and schools. In one of the most serious ransomware attacks yet, hackers linked to a Russian-speaking gang forced the closure for several days in May of a pipeline that transports nearly half the gasoline used on the East Coast, leading to panic buying and empty pumps at some gas stations. Colonial Pipeline, the company attacked, said it decided to pay a ransom because tens of millions of Americans rely on the pipeline. (The Wall Street Journal reported that Colonial paid $4.4 million in Bitcoin, a ﬁgure the company would not conﬁrm.) The University of Utah said it paid a ransom of just over $457,000 last July to avoid private information being released online after attackers cut its computer access. The university worked with its cyberinsurance provider and law

RANSOMWARE CASUALTY COUNT Hackers have held the data of countless organizations hostage. Here are some of the most notorious examples.

COLONIAL PIPELINE (2021)

The company paid a reported $4.4 million in ransom after an attack forced a shutdown of its pipeline, which supplies nearly half the gasoline used on the East Coast. UNIVERSITY OF CALIFORNIA, SAN FRANCISCO (2020)

The campus, busy with vital COVID-19 research, paid $1.14 million in ransom after hackers encrypted important academic data. NORSK HYDRO (2019)

This Norwegian aluminium producer took weeks to restore its systems after being attacked and refusing

enforcement, and consulted with a professional ransom negotiation ﬁrm, which it did not name. “All intelligence and guidance we received indicated that the threat actor would follow through on their threat

to pay up. It suﬀered losses of around $50 million. WAN NAC RY ( 20 17 )

This devastating cyberattack that the U.S. blamed on North Korea infected more than 300,000 computers in 150 countries, disrupting large organizations including the U.K.’s National Health Service and China National Petroleum Corp. SONY PICTURES (2014)

Hackers demanding the movie studio pull a forthcoming comedy, about a plot to assassinate North Korean leader Kim Jong-un, stole a trove of films and emails, and then wiped the studio’s computers.

if ransom was not paid,” the university said. With many companies reluctant to talk about security breaches and ransom payments, some experts wonder if the scale of the problem is

much bigger than publicly disclosed. “We’ve seen ransom negotiations worth $50 million— publicly acknowledged negotiations—and I can only imagine how many of them remain unreported and undisclosed purely because the insurance company is paying off the ransom,” says Andrei Barysevich, CEO of fraudtracking ﬁrm Gemini Advisory, who has led a number of ransomware negotiations. The attacks often originate from countries like Russia and former Soviet republics including Belarus, Ukraine, and Moldova, as well as Turkey. Because of their international nature, and tools used by shadowy scammers to avoid being tracked, successful prosecutions of ransomware gangs are rare. Calls for tougher international action to counter the threat are growing. A group of tech companies and law enforcement from the U.S., the U.K., and Canada in April advocated for an aggressive international effort to combat ransomware, including punishing countries that fail to crack down on the problem. Around the same time, the Justice Department created a task force to take on ransomware gangs. The FBI advises against paying ransom, on the grounds that it encourages more cyber theft and because the proﬁts may be used to fund organized crime and terrorism. But paying ransom is

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legal as long as it doesn’t involve sending money to countries like Iran and North Korea or paying cybercriminals who are on the U.S. Treasury Department’s sanctions list. The first sign that a company has been hit by a ransomware attack often comes only after employees are unable to log in to their computers or use email. An unencrypted file—the only one—delivers the bad news and often directs victims to a website embedded with a clock counting down the minutes until a deadline. “There’s usually a threat attached to that clock,” says negotiator Minder, either that the ransom will double when the seconds count down to zero or that the hackers will dump the stolen data online. But he adds that it’s often just a false deadline intended to create a sense of urgency. If an affected company or organization has backed up its data, and is confident it can resume operations quickly after a ransomware attack, it may decide against talking to the hackers. A company that is unprepared, as many are, or has had its sensitive data stolen, may have little choice but to negotiate—usually through a live chat window that the hackers provide. Negotiators advise companies hit by ransomware to seek help from an insurance company or law firm specializing in data breaches (those firms will decide whether it makes sense to bring in a

ransom negotiator). They also generally recommend that victims contact law enforcement. The average ransom payment in the first three months of this year was $220,000, up a staggering 43% from the previous quarter, according to ransomware negotiating firm Coveware. The rise resulted from a handful of extremely active gangs hitting large victims with high ransom demands. Minder’s ultimate aim is to get the eventual ransom payment down to just 10% of the original demand. The most he ever paid on behalf of a client, a large engineering company that he did not name, was $2.75 million—a result of that business wanting minimal negotiations so that it could get back to work quickly. Minder’s company charges an hourly rate for its services with a cap depending on the size of the client. Most businesses end up with a bill of $20,000 to $25,000, although he says his company has, occasionally, worked for free for a small business or nonprofit. In one such negotiation, Minder tried to persuade the hackers to forgo any payment because the target was a cancer charity, but the gang didn’t like that. “They still made them pay,” he says. One recent wrinkle in ransomware is the advent of “ransomware as a service,” in which software developers lease their ransomware to others in exchange for a share of

ANTIHACKER HYGIENE Companies should follow these steps to avoid becoming ransomware victims. Train employees to spot phishing emails, which are often used to deliver ransomware. Don’t open attachments or click on URLs in unsolicited emails. Use unique passwords to access corporate systems and two-factor authentication. Monitor remote access logs to spot unauthorized access to corporate networks. Regularly back up data. Keep backups separate and offline from normal operations. Ensure all devices on your network use up-to-date operating systems and applications. Make sure antivirus software is set to automatically update and run regular scans. If hit by a ransomware attack, have a plan ready for how you will respond. SOURCES: FBI, CYBERSECURITY EXPERTS

the ransom proceeds or a subscription fee. This has made it easier for criminals who have little technical expertise and who are less predictable to enter the field. “It’s kind of like the Mafia versus a street gang. The Mafia has a code, they behave in a very specific way,” Minder says. “These smaller actors that are just buying the platform, they have no rules, and they don’t really care about long-term outcomes, so they don’t necessarily always honor the deal.” Organizations can insure themselves against ransomware attacks by taking out cyber insurance with an insurance company such as AIG or Coalition. Policies typically cover the cost of ransom and of getting computer systems running again. As Coalition’s incident response lead, Leeann Nicolo is the first to get the call when a client is hit, although the company brings in outside experts to handle the negotiations. She says ransoms have gone up 10-fold since she began working in the field in 2015, when a $50,000 demand was a big deal. “As of late, it’s pretty common that the demand is in the millions,” she says. Among the risks of paying, she cautions, is “double extortion,” when cybercriminals doublecross their victims. Says Nicolo matter-of-factly, “After the first payment is made they will go back to the original ask, so it’s like paying twice.”

CONTENT FROM UGI

PROFILE 2021 | FORTUNE 500

Delivering Strong Results by Investing in the Future International energy company UGI rewards its shareholders, takes care of its customers and employees, and promotes the welfare of the planet and its people.

INCORPORATED IN PHILADELPHIA IN 1882 AS

UGI CORPORATION PRESIDENT & CEO JOHN WALSH (RIGHT) WILL TURN OVER THE REINS TO CEO-ELECT ROGER PERREAULT (LEFT) ON JUNE 26.

the ﬁrst public utility holding company in the United States, and paying dividends for more than 137 years, it is perhaps no surprise that UGI, the international energy distribution and services company, came through 2020 in strong shape—and even made strides in increasing community outreach, doubling down on diversity within its ranks, and advancing renewable energy. Decarbonization (or defossilization) is both a challenge and an imperative for

UGI, which has converted almost 100,000 households to cleaner natural gas in the past decade, saving customers about $100 million annually. “Over the past year,” says Roger Perreault, CEO-elect, “we’ve made a number of investments to grow our portfolio of low-, zero-, and, in some cases, negative-carbon solutions.” These include its acquisition of GHI Energy, a leading renewable natural gas marketer in California, and a focus in the U.S. and Europe on other renewable solutions, such as bioLPG, a low-carbon alternative to conventional liqueﬁed petroleum gas, and rDME (renewable dimethyl ether). Much of UGI’s capital program is dedicated to replacing aging infrastructure as well. By upgrading its pipelines, the company has reduced methane emissions in its utility business by more than 30% since 2009, according to Perreault. And they expect an additional 35% reduction over the next 10 years, with a commitment to a 55% reduction in corporate-wide direct emissions by 2025. Still headquartered in Pennsylvania, UGI has long valued community engagement; its partnership with United Way has endured almost a century. “The events of 2020 put an additional sense of urgency into our activities,” Perreault says. The company established new partnerships with the Urban Affairs Coalition and Big Brothers Big Sisters, and it launched its Belonging, Inclusion, Diversity & Equity (BIDE) Initiative to promote those qualities within UGI and address racism in the communities it serves. It also created two new positions: vice president, talent management and diversity & inclusion, and global head of supplier diversity and responsible sourcing. Going forward, the company intends to continue the course it has charted, investing up to $1 billion in renewable energy by 2025 while striving to deliver earnings-per-share growth of 6% to 10% annually, with 4% dividend growth. “To do this, we will remain disciplined, innovative, and entrepreneurial,” Perreault says. “We have a very bright future ahead of us.” ■

CONTENT FROM DELOITTE

MAKING A.I. TRUSTWORTHY Artificial intelligence is an incredibly valuable tool for businesses, but it can also raise ethical questions. ARTIFICIAL INTELLIGENCE (A.I.) HAS MADE THE LEAP from the realms of science fiction and academia into our everyday lives in a short amount of time. Businesses are rushing to adopt this technology for its many benefits: more automation, better and more personalized customer service, improved research and data analysis, and smarter decision-making. But, as with anything new, there is uncertainty around the implications and ethical ramifications of A.I. use, according to Beena Ammanath, executive director of the Deloitte AI Institute, Deloitte Consulting LLP. As companies and policymakers

develop new regulations, there are concerns that new recommendations will be difficult to explain and implement, creating potential brand, reputational, and legal risks. “Current A.I. use is like driving a car on roads that are still in development,” Ammanath says. “There are still plenty of unknowns that businesses need to actively address.” To help navigate this rapidly changing landscape, Deloitte developed its Trustworthy AI™ framework to help companies think through which ethical considerations are important for their A.I. tools and use cases, and to establish processes and corrective steps to keep A.I. in line with ethical priorities. Through the framework, A.I. stakeholders can explore subjects like fairness and bias, transparency, privacy, and security—and how these topics impact diﬀerent industries in varying ways. For instance, a manufacturing company using A.I. to predict if and when a factory machine might fail is primarily interested in an algorithm that is reliable, consistent, and safe from cyber criminals. A health care company, however, puts privacy and equity front and center. And an insurance company might deal with still other ethical concerns. “A big misconception many business leaders have is assuming that the ethical principles will be the same for every company,” Ammanath says. “There are nuances. We’re going to need separate A.I. ethics-related regulations, policies, and best practices for each industry and sector depending on the A.I. use case.” A tool like Deloitte’s Trustworthy AI framework lays out critical questions tailored to a company’s industry and use cases. Answering these targeted questions can help decision-makers identify the ethical challenges relevant to a particular application. From there, the company can be positioned to prioritize which actions are needed to address ethical challenges. “More and more companies are now solving for A.I. ethics and deciding what aspects of it are important to the work they’re doing,” Ammanath says. “We want to help them put in checkpoints to head oﬀ problems before they occur. For A.I. to reach its full potential, we should address these ethical issues; fortunately, we are seeing a lot of progress in this area.” ■

A big misconception many business leaders have is assuming that the ethical principles will be the same for every company. There are nuances. We’re going to need separate A.I. ethics regulations, policies, and best practices BEENA AMMANATH, Executive Director, Deloitte AI Institute for each industry and sector.

About Deloitte: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Bridging the ethics gap surrounding AI Deloitte puts trust at the center of everything we do. Our Trustworthy AI™ framework can ensure the ethical use of AI and sustain the trust of employees and customers. :LWK WKH 'HORLWWH $Ζ ΖQVWLWXWH ZH KHOS RUJDQL]DWLRQV FRQQHFW DOO WKH GL HUHQW GLPHQVLRQV of the robust, highly dynamic and rapidly evolving AI ecosystem.

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IN V EST IN G

Your Father’s Stock Market Is Never Coming Back Younger generations are reshaping the rules and conventions of investing. Older investors can’t aﬀord to dismiss them. BY JOSHUA BROWN

ILLUSTRATION BY CHRIS GASH

JERRY GETS UP and puts on a pot of coffee. Squawk Box is on the television. They’re bantering about whatever happened on Twitter that morning. Jerry’s not on Twitter. He’s tired of hearing about all the rhetorical twists and turns on the app that are constantly pushing his stocks around. Sports commentators and actors turned venture capitalists are causing gyrations in the value of

his retirement portfolio with their online antics. Remember when stocks traded on fundamentals? Or at least they traded based on people’s perceptions of the fundamentals. What do they trade on today? It was always a popularity contest. Now it’s a three-ring circus. It makes no sense. Jerry is tired. Upstairs there’s a burst of excitement, the sound of a young man cheering. It’s Jerry’s kid, Aiden. Aiden’s been out of school for years. He’s making as much as Jerry did 30 years ago. That’s not enough to buy a house these days, but it’s plenty to sit in a room all day and

speculate. Aiden’s trading as much as he’s working in his actual work-fromhome job, and it sounds like he just scored again. Jerry spent three decades saving and investing, prudently and dutifully. He and Nancy have accumulated $1.2 million—for them it’s all the money in the world. Took them their entire lives. Aiden made $800,000 in the past 12 months, starting with the $25,000 his grandfather left him. He did it from a phone, knowing virtually nothing about the instruments he traded. Read a few posts on Seeking Alpha, saw a few tweets from Mark Cuban, and pressed the Buy button. Then again, and again. Then with leverage. Then with crypto. It worked, repeatedly. Large gains led to larger trades, which led to even larger gains. “Why doesn’t everyone do this?” Jerry’s role in the market is changing. He’s entering what ﬁnancial planners euphemistically call “the decumulation phase,” as his consulting work slows down and his retirement income needs ramp up. The popular rule-ofthumb retirement income strategy—withdrawing 4% per year—cannot be accomplished with bond yields alone, as in the olden days. If Jerry wants his 4%, he’ll have to get some of it from principal, which means being a seller of stocks for the next few decades. As Jerry and his generation gradually exit from

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5 6 F O R T U N E J U N E /J U LY 2 0 2 1

400 780 7.0 15.2 BILLION

BILLION

MARKET CAP OF WALMART, N O. 1 O N THE FORTUNE 500 (AS OF NYSE MARKET CLOSE, 5/19/21)

MARKET CA PITA LI Z ATI O N OF BITCOIN

SHARES OF U.S. STOCKS TRADED D A I LY, 2 0 1 9

SOURCES: BLOOMBERG, COINDESK

SOURCE: COWEN & CO.

the market, they’re being replaced by Aiden’s cohort. And Aiden’s cohort isn’t sentimental. The conventions from Jerry’s day hold no interest for Aiden or Jayden or Chelsea or Tyler or Madison. They don’t respect the traditions. The publications. The protocols. The norms. There’s no advice you can give them that they will adhere to, just as the boomers deﬁed their Depression-era parents with their own excesses. There’s an old “Wizard of Id” cartoon Jerry remembers from his own youth in the ’60s. It said, “Remember the Golden Rule: Whoever has the gold makes the rules.” Aiden’s generation went from almost no participation in the stock market to overnight dominance of it. They have the gold. They make the rules. Millions of new brokerage accounts. Trillions in value transferred from taxpayers and the Federal Reserve into accounts at Robinhood and Coinbase. More money pouring in with every paycheck. Leverage, too, because either

this generation is truly fearless or (more likely) they haven’t had enough time to lose money yet. Either way, they decide what’s important to pay attention to and what’s irrelevant. If they choose to react to a 10-word Elon Musk tweet rather than a three-hour Warren Buffett monologue, how will you stop them? How do you explain stock market risk to someone whose only formative experience with it took the form of a 16-day bear market last March, about the length of time of an NBA Finals series? How do you convince newly minted investors that diversiﬁcation makes sense when the ﬁrst stock they ever bought, Tesla, rose 800% while everything else moved in slow motion? How can you expect them to respect their elders when their elders seem to be giving them horrible advice? “Don’t trade too often, don’t use margin, Bitcoin is fake, Tesla is overvalued, cannabis is a bubble, SPACs are a scam …” You are Charlie Brown’s teacher now—

BILLION

your admonitions have become background noise. And besides, it’s all been so easy. Between March 23, 2020 (the market bottom), and that same date this year, 96% of U.S. stocks had a positive return. You could not have lost money if you’d tried. Imagine learning to invest in an environment like this. How would you be acting if this was your ﬁrst experience with stocks? Jerry can’t understand it. He’s seen bull markets, but nothing like this before. Everything goes up. We locked everyone in their homes for a year and gave them a virtual life to live on their screens. Why should we be surprised if they treat money and investments like prizes in a video game? IF YOU HAD opened your ﬁrst brokerage account in the spring of 2020, you would most likely have opened it at Robinhood. You didn’t drive over there, park your car, and talk to a man in a suit about your objectives. Instead, you downloaded an app, transferred $500 in from

BILLION SHARES OF U.S. STOCKS TRADED D A I LY, F I R S T THREE MONTHS OF 2021

your couch, and pressed some buttons. Within 24 hours that $500 was likely worth $750. Within a week, $3,600. “I am a genius,” you said. “I should put in more. I should borrow some. What’s moving faster than stocks?” With a Robinhood account, your ﬁrst exposure to cryptocurrencies does not frame them as an unproven alternative to stocks. The two stand on equal footing. Coke and Pepsi. Feel like trading one or the other? Have at it, no difference. This is radically different from the experience of the Gen X and boomer investors logging in through Schwab, Fidelity, or Vanguard to check their balances or download a statement. They may come across a link to an article about crypto, but it certainly won’t be an opportunity to transact. On Robinhood’s app you practically can’t escape it. The generation creating the new conventions of the investing landscape views stocks and crypto coins as interchangeable. Aiden can’t discern any difference between trading one

C O N T E N T F R O M VA L E R O E N E R GY C O R P O R AT I O N

PROFILE 2021 | FORTUNE 500

Leading the Way in Energy Transition Valero Energy Corporation continues to be a leader in renewable transportation fuels.

VALERO IS A BEST-IN-CLASS PRODUCER OF FUELS AND PRODUCTS ESSENTIAL TO MODERN LIFE.

MORE AND MORE COUNTRIES ARE placing greater emphasis on transitioning to low-carbon renewable energy sources. Valero Energy Corporation, the world’s largest independent petroleum reﬁner, has been staying ahead of the curve for more than a decade. The San Antonio–based company, the largest producer of renewable transportation fuels (renewable diesel and ethanol) in North America and the second largest producer of renewable diesel in the world, is managing its business to responsibly meet the world’s growing demand for reliable and affordable energy while addressing climate change risk. Recognizing the world wants lower-carbon fuels, Valero recently pledged to reduce and offset

63% of refining greenhouse gas (GHG) emissions by 2025. “We are leveraging our global liquid fuels platform to continue expanding our long-term competitive advantage in renewables,” says Joe Gorder, chairman and CEO of Valero. “Over half of our 2021 growth capital is allocated to renewable fuels.” Valero has built its reputation executing leading-edge renewable energy projects, investing more than $3 billion since 2009. The company was the first refiner to enter large-scale production of ethanol. Last year, Valero announced Texas’s first renewable diesel plant, with expected completion in 2023. And this year, it announced a partnership with BlackRock and Navigator Energy Services to capture and store carbon dioxide (CO2) from its ethanol plants, aiming to produce a lower carbon intensity ethanol to be marketed in lowcarbon fuel markets. Valero continues to look at ways to lower the carbon intensity of all its products, including carbon sequestration, renewable hydrogen, and sustainable aviation fuel, among others. These projects reduce the carbon intensity of Valero’s liquid transportation fuels while earning attractive rates of return. In the face of pandemic-induced challenges, Valero maintained its dividend and investment grade credit ratings while also continuing its philanthropic tradition by giving more than $58 million to its neighboring communities. “As COVID-19 vaccines are widely distributed, we are hopeful people will feel safe to experience life again,” says Gorder. “We expect the pent-up desire to travel will drive demand for our products. And we are ready to meet that demand.” This expectation, coupled with Valero’s engineering innovations, sound execution, and demonstrated discipline in capital allocation, drives its ongoing commitment to produce affordable, reliable, and sustainable energy for generations to come. ■

THE BRIEF — INVESTING

5 8 F O R T U N E J U N E /J U LY 2 0 2 1

2.4 743 %

INCREASE IN THE PRICE OF BERKSHIRE H AT H AWAY C L AS S B S HARES, 2020

or the other. Both were available to buy and sell from the first day he got started, just as stocks and bonds were when Jerry first opened his IRA. If it moves, it moves. Take a moment to process this, but get used to it. Like the air you breathe, it’s not going away. Aiden is taking profits from Bitcoin and Tesla and GameStop and Ethereum and Polkadot and AMC and Riot Blockchain. He’s not going to take Jerry’s advice on what to do with the proceeds, either. He’s not putting some in the bank. He’s not buying any “Spider ETFs,” whatever that is. His gold, his rules. He’s buying NFTs instead. Crypto art. Fractions of Ferraris. NBA video clips. Aiden’s girlfriend Lakshmi works in marketing for Airbnb. When the company went public this winter, her net worth soared above Aiden’s and Jerry’s combined. A job she held for three years paid her more than a lifetime’s worth of Jerry’s savings. All those meetings, mediations, court appearances, and late nights reading through documents. All that travel

INCREASE IN T E S L A’ S S H A R E PRICE OVER THE SAME PERIOD SOURCE :BLOOMBERG

and commuting. Jerry invested prudently because the money seemed irreplaceable. He’d traded hours and days and years to save it up. The same amount is now raining on people daily. They’re earning his portfolio’s value by accident. Earning isn’t the right word. Stumbling upon is more apropos. Lakshmi knows it’s unlikely she will experience a liquidity event like this again. But she also has her whole life ahead

anything average getting ahead in life?” she asks herself. “America doesn’t work for average people.” She has a portfolio with more angel investments than blue-chip stocks. Her college friends and former colleagues are starting companies and soliciting capital. These businesses are getting funded, scaled, and acquired almost as fast as they can hire. Why anyone would prefer a mutual fund is a total mystery to her. THIS IS AIDEN and Lakshmi’s market. It’s growing horizontally and cannot even contain the amount of capital swirling around in the ether. It’s expanded outward to include blankcheck companies, venturebacked startups, tradable bits of computer code, investable software protocols, claims on fractional ownership in everything

YOU ARE CHARLIE BROWN’S TEACHER NOW—YOUR ADMONITIONS HAVE BECOME BACKGROUND NOISE. of her. She has no idea what she wants to do with the rest of her twenties, so the idea of retirement is almost farcical. An equally laughable notion is that she should settle for the annual average returns of the “safe” 60/40 stock-andbond portfolios touted by planners and advisers. “Do you see anyone who’s doing

from comic books to cars and a whole lot more. The everything-goes-up era will end someday, maybe even soon, but the habits, expectations, and ambitions it created won’t go away. For 14 months, the digital stock market hummed along without a hitch while the physical location that was once

emblematic of American capitalism—the New York Stock Exchange—sat closed and nearly empty, a museum commemorating an earlier version of the world. Jerry’s stock market is fading away with every passing day. And it’s never coming back. Here’s the actuarial math: If Jerry makes it to 65, he has a one in four shot of making it to 95. That could mean a retirement spanning three decades. Interest rates on Treasuries are not going to get him there. The one thing we know about the post-pandemic period is that its primary attraction is skyrocketing costs for everything. Lumber, labor, Chevy Silverados, single-family homes, microchips—you name it, the price is up. The only thing getting cheaper is money. The purchasing power of Jerry’s dollars will decline by 3% this year, statistically. In reality, it’ll be much worse. To offset this, the stock market is still one of the only games in town. Yes, it all belongs to Aiden’s generation now, but Jerry still has to find a way to live with it—and to understand how the game is changing. To become fluent in the discourse. To familiarize himself with the rappers and influencers signing fashion deals at Gap, launching cannabis startups, backing blockchain projects. To learn the memes and clapbacks shaping each day’s discussions and outcomes. Jerry’s got his work cut out for him.

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1 0 0 F O R T U N E J U N E /J U LY 2 0 2 1

THE BIG IDEA

HOW THE BIGGEST NAMES IN BUSINESS TOOK ON HEALTH CARE—AND LOST Amazon. Berkshire Hathaway. JPMorgan Chase. When three of America’s titans teamed up to overhaul our broken system, many thought it was just a matter of time until the industry bowed to their will. But that time never came. BY ERIKA FRY

ration of war?

AS IT A PRESS RELEASE,

or a decla-

How else to explain the media and market frenzy that followed the announcement, issued at 7 a.m. on Tuesday, Jan. 30, 2018, that Amazon, Berkshire Hathaway, and JPMorgan Chase—three of the nation’s largest, most high-profile, and best-run companies, then with some $534 billion in revenues between them—were teaming up to take on the evermore-expensive, ever-more-complex problem that is American health care. Or what Berkshire CEO Warren Buffett colorfully described in that press release as “a hungry tapeworm on the American economy.” Specifically, the companies were aiming to improve satisfaction and reduce the cost of the health care they purchase and subsidize for their employees and their employees’ families in the form of health benefits— collectively, a $4 billion annual commitment. They planned to do this by forming “an independent company that is free from profit-making incentives and constraints” and focusing on “technology solutions.” The announcement contained both notes of humility—Buffett: “Our group does not come to this problem with answers”; Amazon’s then-chief Jeff Bezos: “The health care system is complex, and we enter into this challenge open-eyed about the degree of difficulty”—and a spirit ILLUSTRATIONS BY MICHAEL GEORGE HADDAD

F O R T U N E J U N E /J U LY 2 0 2 1 1 0 1

Warren Buffett called the industry “a hungry tapeworm on the American economy.” of grand sacrifice: As JPMorgan’s Jamie Dimon put it, “Our goal is to create solutions that benefit our U.S. employees, their families, and, potentially, all Americans.” The effort was “in its early planning stages”—a management team, headquarters, key operational details, all TBD—and it had come as a total surprise to virtually everyone, including JPMorgan’s health care bankers, who had reportedly been given a heads-up only the night before. What did it all mean, practically? No one knew for sure. Nonetheless, news of the fledgling venture seemed to many a promise of disruption to come. “They were in many ways blasting the current configuration of the health insurance industry, in very strong terms,” says Matthew Borsch, a managing director at BMO Capital Markets. “You got the sense that they were making this revolutionary commitment to some kind of transformation to the relationship between employer groups and the health insurance carriers.” Sure enough, the stocks of major health care companies including UnitedHealth, CVS, Cigna, and Aetna tanked. By the end of the week the S&P 500 Health Care index had fallen 4.8%. Those inside the system seemed cowed by the news: Express Scripts issued a statement more or less acknowledging it had to do better. A senior executive at Optum, the $136 billion subsidiary of UnitedHealth, the $257.5 billion insurer—which counted JPMorgan and some of the Berkshire companies as customers—later testified in court that some of his employees “were

very scared this company would take over the world.” To those who had toiled in the world of employer-sponsored health care for decades, trying but never really succeeding to come up with new ways to control costs and improve outcomes—promoting wellness activities and chronic disease management programs; investing in navigation tools and second-opinion services; embracing high-deductible health plans in an effort to make beneficiaries better, more cost-conscious users of care—the statement, from three powerful CEOs, was cause for celebration. Here was a rare show of leadership from corporate chieftains with heft and a shot across the bow at an industry (insurers, health providers, pharmacy benefit managers, or PBMs) that for too long had been allowed to profit by maintaining the miserable status quo. The illustrious trio looked like a dream team actually capable of

shaking things up in America’s bloated and entrenched $3.8 trillion health industry. Their CEOs were all visionaries in their industries. Berkshire and JPMorgan brought finance chops. Amazon had the proven playbook—a consumer-first ethos, big data, bold and patient investment—for audacious disruption. Between them, they had deep pockets, ample resources, and the purchasing power that came with their combined 1.2 million employees. Five months in, the team announced another star would lead the venture: Atul Gawande, the surgeon and influential New Yorker writer whose clear-eyed analysis of America’s dysfunctional health care system had earned him the admiration of Barack Obama and Buffett. Other hires were announced, but little news emerged. A legal dispute involving a former Optum employee who accepted a job at the new entity in late 2018—allegedly violating his

CHANGE IN INSURANCE PREMIUMS AND DEDUCTIBLES SINCE 2010 120% 111.1% DEDUCTIBLES

100 80 60

55.0% FAMILY PREMIUMS

40 27.0% WAGES 18.7% INFLATION

20 0 2010

2015

2020 SOURCES: KAISER FAMILY FOUNDATION; BUREAU OF LABOR STATISTICS

1 0 2 F O R T U N E J U N E /J U LY 2 0 2 1

noncompete—allowed perhaps the fullest peek behind the curtain. The court proceedings indicated that as of January 2019, the still-nameless venture had 20 employees and a plan that was extremely nebulous. (More revealing, at least in terms of how industry incumbents viewed the project, was the vigor with which Optum had gone after the exemployee, a member of the corporate strategy team. After performing a forensic analysis of printouts and searching his office, Optum accused him of stealing trade secrets, including an unrecovered “Project Orange Fact Book.” The court case, parts of which both companies argued to keep under seal, was eventually dismissed.) In March 2019, the venture finally got a name, Haven. The first major departure came in May; COO Jack Stoddard, an alum of Comcast (which has one of the most innovative health benefits programs in the country), stepped down eight months after joining. Many followed—the venture, once thought to have abundant resources, even laid off some people—and then Gawande, who had never left his teaching, writing, and doctoring positions, transitioned from CEO to chairman in May 2020. The project officially sputtered to an end earlier this year, when the companies released a joint 85-word statement on Haven’s website. In the end, Haven’s short life wasn’t even dignified by a corporate press release.

What can be learned? Readers, O, WHAT HAPPENED

with Haven?

after months of reporting, I’m sorry

to confess I can offer only a hazy, partial picture. My assignment, back in February, had been to get “the inside story” on what transpired. What, after all, could be a better, more important case study for the Fortune 500? At the outset, the founding CEOs had expressed a desire to better our health system for everyone, and Gawande had built his public career on case studies. This is a man who appreciates learning lessons and sharing them. And yet, perhaps like Haven itself, my project was conceived a bit too ambitiously. The entity that set out to ﬁx health care in fact suffers from one of the industry’s worst traits—a lack of transparency. To date, those involved haven’t shared much. All three companies declined repeated requests for interviews. Dimon offered a note of 174 words in his annual letter to shareholders: “We learned a lot about how the health care system could be improved,” he remarked. Buffett, when asked at Berkshire’s shareholder meeting in May about what was learned, was hardly more illuminating: “The tapeworm won,” he said, while add-

ing Berkshire probably got more out of the venture than the others. “We found some dumb things we were doing. So we got our money’s worth.” Gawande also declined Fortune’s invitations (over several months) to be interviewed. Ironclad nondisclosure agreements have kept other former Haven employees from speaking. It’s a shame. I say that as a humbled journalist, but more on behalf of the dozens of people I spoke to who are struggling with the same issues Haven was tackling and were hopeful to learn from its efforts. After all, this is about how to make health care more affordable and accessible to employees. That’s no trivial matter. Roughly 160 million Americans currently get health insurance through their employers. They have been considered the lucky ones, but as Gawande noted in a recent conversation with UCSF Department of Medicine chair Robert Wachter—one of the few occasions when he’s commented publicly on Haven—for many working Americans, employer-sponsored insurance is not much of a beneﬁt anymore. With the average annual family premium standing at $21,342 and deductibles

T H E B I G I D E A — H E A LT H C A R E

Haven set out to fix health care but suffers from one of its worst traits—a lack of transparency. often topping $2,000, the cost of coverage is simply too high. The opportunity to address that problem, Gawande told Wachter, was in part what drew him to Haven. Haven’s health plan, rolled out to tens of thousands of JPMorgan beneficiaries in Ohio and Arizona, was a step toward that, he said. The plan, which he described as popular and “financially viable,” is still available to those employees today. Members have no coinsurance and no deductibles, just predictable co-pays, inexpensive mental health and primary care, and free access to 60 essential drugs. (JPM already offered the prescription benefit.) Of course, the costs are crippling for businesses as well. Though they have recently pushed an increasing share to their workers, employers still pay most of the health care bill, one that reliably increases at a scandalous rate of 5% to 10% every year (and at an even higher rate for small businesses). That’s money firms are plowing into a health care industry— to which they pay, on average, 250% of Medicare rates—and not into wages or R&D or anything else. Haven was hardly the first effort trying to improve this dismal state of affairs. Local, regional, and national coalitions have focused on group purchasing and value-boosting strategies. Innovations by Walmart, Boeing, and GM have been embraced as industry models. And in 2016, the Health Transformation Alliance, another effort aimed at reducing costs and improving outcomes, launched with the backing of 20 companies including Macy’s and Verizon (not to

mention JPMorgan as well as Berkshire’s BNSF). The spirit in which these organizations tend to operate is open and collaborative, with a feeling that “a rising tide lifts all boats.” That’s not to say they have cracked the code. Catalyst for Payment Reform, an employer group that advocates for higher value health care, recently completed a comprehensive study on aggregated purchasing efforts like Haven’s that have been tried over the years. They found such groups are typically doomed for a few reasons: the lack of competitive health care markets; resistance or “sabotage” by players that beneﬁt from the status quo; and employers’ unwillingness to compromise and act together. Are any of those hurdles what felled Haven? My hunch, after speaking with dozens of people—experts, employers, individuals involved in similar initiatives, health system participants, and a few Haven insiders who would not speak on the record— was that it was all of them and more. Haven always loomed larger in the imagination than it did on the ground. At its peak, it was a startup of 75-some employees, the majority of whom worked out of a coworking space in downtown Boston. And on closer inspection, the dream team was really more of a motley crew. The three companies’ 1.2 million employees were dispersed across the country, meaning Haven didn’t have market power in any one place—the real key to driving down prices with providers. Each company had its own approach to health beneﬁts, with

differing priorities and decisionmaking processes. Amazon is consumer-focused, JPMorgan more oriented around “relationships and loyalty,” says Owen Tripp, the CEO of Grand Rounds Health, a secondopinion and navigation service whose customers include the Haven companies. (He was also a candidate for the top job at Haven.) Berkshire, meanwhile, didn’t have one style, but many: Its dozens of portfolio companies, from Acme Brick to Dairy Queen to Berkshire Hathaway Energy, handle their beneﬁts independently (allowing ample opportunity for those “dumb things”). That meant that no matter how good Haven’s ideas, they couldn’t be easily implemented across all the companies. “It was just very different deploying at Amazon, Berkshire Hathaway, and JPMorgan Chase. There are different cities, different populations, exceedingly different cultures of organization,” Gawande told Wachter. Haven, then, wouldn’t work as a sort of beneﬁts office. Instead, Gawande said, it risked “becoming a very expensive think tank.” As Haven dealt with joint venture pains and dabbled in pilot projects, like building a telehealth platform for providing primary care, Amazon sped ahead with its own somewhat similar health care offerings—like Amazon Care, a sort of virtual urgent care offering that the company is now selling to employers across the country. A few people involved with Haven say this was always the plan— that Amazon would continue to work on proprietary projects—and resist the characterization reported by The

1 0 4 F O R T U N E J U N E /J U LY 2 0 2 1

“Getting data from insurance companies and pharmacy benefit managers is like trying to get raw meat from a caged lion.” Information that it caused any problems with the joint venture. Whatever the case, it’s a pretty good picture of where Amazon’s head was at. Meanwhile, even with its star power, Haven couldn’t break the black box that is U.S. health care. The venture’s game plan had been to aggregate and analyze their shared claims data, and follow the insights to lower-cost, higher-quality care. But Haven struggled to get its intermediary partners to hand over that data. Incredible as it may sound, that’s not uncommon: Though employers are paying the bill, the insurers, PBMs, and third-party administrators that process health claims often argue they can’t share pricing information because the rates they negotiate with health providers are conﬁdential and proprietary. Employers have little visibility into what they are actually buying as a result. It’s like going to a restaurant and being presented with a non-itemized bill, says Christopher Whaley, a policy researcher at Rand, who has partnered with employers to collect and analyze claims data from across the U.S. as part of the Employer Hospital Price Transparency Project. “Getting data from insurance companies and PBMs is like trying to get raw meat from a caged lion,” says Robert Andrews, a former New Jersey congressman who has served as CEO of the Health Transformation Alliance since 2016. It took his group, which currently has 58 corporate members representing more than 4 million lives and $27 billion in annual spending, three and a half years—the life span of Haven and then some—to gather their collective claims data.

That points to what may have been one of Haven’s other weaknesses: its insularity. Perhaps in its bid to keep its own work secret, Haven appeared blind to—or just not interested in—valuable work that had already been done. “It was almost as if the presumption was that ‘we’re going to come up with an idea that hasn’t occurred before,’ ” says Robert Galvin, who ran health benefits for GE before becoming in 2010 the CEO of Equity Healthcare, a successful Haven-like initiative that works with Blackstone’s portfolio companies. “The reality is there are a lot of good ideas out there.” Haven reached out to Galvin looking for potential recruits, but, he says, the venture wasn’t interested when he offered to share what he had learned building Equity Healthcare. When Marilyn Bartlett, a CPA who has become something of a folk hero for the work she did as administrator of Montana’s state health plan, reached out to Haven to offer her learnings, she never heard back. Galvin adds that this is part of a larger failing, in the way Haven was conceived and staffed. Rather than just going after new solutions, he argues, what Haven needed were people who really understood the ecosystem and “how to execute.” Some people thought the nonprofit structure was a problem; others, the glare of the spotlight. Just about everyone spoke of Gawande in glowing terms, before adding that given his lack of operational experience, he was probably wrong for the job. Some also wondered if relationships and conflicts of interest got in the way: JPMorgan has heaps

of health care clients; Berkshire is the largest shareholder of DaVita, a highly profitable dialysis company, and owns Berkshire Hathaway Specialty Insurance, a purveyor of insurance products that cater to the health benefits market. Other popular opinions: The founders weren’t sufficiently committed, and the mission wasn’t sufficiently clear. Haven took on too much and didn’t give it enough time. Great idea, poor execution. Most of all, health care is hard. Haven’s founders gave up on the venture but not the goal. Amazon never stopped its work, and JPMorgan just launched Morgan Health, a new business unit that sounds a lot like Haven, but with some key modifications: Its internal team will set priorities, and the defined mission is to work with, not against, industry partners and innovators. So, did Haven make a difference? Opinions are divided there too. Some credit Haven for sparking a conversation and spurring investment; others argue the effort undermined progress by raising the obvious question: If they couldn’t do it, who can? In a recent Kaiser Family Foundation survey of very large employers (health care companies not included), 85% of top executives think government support will be necessary to control costs and provide coverage. Gawande goes further and has recently argued that the employersponsored system can’t be fixed. Noting how many Americans lost their health insurance in a global pandemic, he said to Wachter: “A jobbased system is a broken system.”

C O N T E N T F R O M A L LY

PROFILE 2021 | FORTUNE 500

A Focus on Inclusion In response to the increasing inequity issues facing the country, Ally Financial broadened and deepened its diversity and inclusion efforts.

IN MARCH 2019, THE FIRST CLASS OF ALLY’S “MOGULS IN THE MAKING” PROGRAM GATHERED IN DETROIT. THE BUSINESS PLAN PITCH COMPETITION OFFERS STUDENTS AT HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AN OPPORTUNITY TO LEARN AND PRACTICE VITAL SKILLS.

IN SOME WAYS, ALLY FINANCIAL’S LONGstanding values of fostering inclusion, building understanding, and embracing differences are simply an effort to live up to its name. After all, the term “ally” has taken on new signiﬁcance in recent years, often referring to those who actively support marginalized groups in an effort to reform systems that work against them. Ally spent the past year creating a ﬁnancial and social inclusion road map that aligns with the brand’s promise to “Do It Right,” says CEO Jeffrey J. Brown. To that end, Ally also hosted

“Let’s Talk About It” sessions in response to the social unrest that marked last summer, during which employees shared their personal stories with one another. “The participation was phenomenal and led to some very powerful, eyeopening conversations,” Brown says. “Listening is such an important part of leadership.” Brown adds that one of the highlights of his year was working with students from Ally’s second annual “Moguls in the Making” competition, created in collaboration with the Thurgood Marshall College Fund. The program gives young entrepreneurs from historically Black colleges and universities (HBCUs) an opportunity to develop business plans, gain career skills, and build their professional networks. “I think all CEOs should take time to meet with students, hear what they are saying, learn about the challenges they see in the future and how we might address them,” he says. The company’s culture of diversity and inclusion helped drive its success— even during the challenges of the past year, Brown says. Ally grew 6% year over year in 2020, with $6.7 billion in revenue, its highest-ever annual result. In 2021, Ally plans to broaden and deepen initiatives that address the wealth gap and economic mobility. It is also committed to improving mobility within the company itself. To further those efforts, the company is working to amplify the voices of its employee resource groups and identify diversity and inclusion champions—leaders who will push forward inclusion initiatives and transform philosophies into operations. “The dedication and compassion I saw from our people last year exemplify our culture and remain a driving force behind our ability to deliver exceptional products, services, and results,” Brown says. “I am proud of how far we’ve come, but I recognize there’s more to do.” ■

C O N T E N T F R O M R P M I N T E R N AT I O N A L

PROFILE 2021 | FORTUNE 500

Back Where It Belongs Strong demand from DIYers and a just-concluded operating improvement plan have returned RPM International to the Fortune 500 list for the first time since 1994.

TOP: FRANK C. SULLIVAN, CHAIRMAN AND CEO, RPM INTERNATIONAL. BELOW: RPM, HEADQUARTERED IN MEDINA, OHIO, SAW SALES OF DIY MATERIALS EXPLODE IN 2020.

WITH PEOPLE SHUT IN THEIR HOMES DURING the COVID-19 pandemic, do-it-yourself (DIY) projects exploded in popularity. From birdhouses to bathroom renovations, doorknobs to decks, making home improvements was one of the most productive ways to pass the time. This led to an increased demand for things like coatings, sealants, and other products for beautifying, improving, and protecting one’s home. RPM International Inc., the Ohiobased company responsible for wellknown brands such as Rust-Oleum, DAP, and Zinsser, was there to support DIYers worldwide. And because RPM’s procurement team had recently consolidated its suppliers, it was in a better position than many of its competitors to secure materials and control costs. “We ramped up production to meet demand,” says Frank C. Sullivan, chairman and CEO of RPM. “We expect that many new DIYers will continue to use

their newfound talents and our products as well.” The company, which has nearly 15,000 employees and operates 124 manufacturing sites around the world, just concluded its own DIY project: a three-year operating improvement program called MAP to Growth. The plan resulted in greater efficiency, which led to accelerated growth and increased value for RPM’s leading brands, contributing to $5.5 billion in revenue last year and a stock price that has doubled since kicking off the MAP to Growth program three years ago. “Throughout our history, we have been exceptional at growing the top line. Now we are a much more efficient business as well,” Sullivan says. “This is a one-two punch that is very powerful in terms of our ability to compete and win in the consumer and industrial markets we serve. It has us well positioned for another decade of growth and success.” This year marks a return to the Fortune 500 for RPM, which made the list once before, in 1994. The CEO then was Sullivan’s father, Thomas C. Sullivan, who oversaw the growth of the company from an $11 million business in 1971, the year he took over, to one that posted nearly $2 billion in sales in 2002. “My father passed away in November, and I know he would have been ecstatic to learn that RPM has once again achieved the great recognition of being named a Fortune 500 company,” Sullivan says. “This time, we intend to stay indefinitely.” ■

BUILDING A BETTER WORLD From homes and workplaces, to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals worldwide to:

BEAUTIFY

PROTECT

PROLONG

ENHANCE

Structures

Against Harsh Environments

Lifecycles

Sustainability

OUR BRANDS PAY DIVIDENDS

47 consecutive years of cash dividend increases

LEARN MORE

www.RPMinc.com/invest

RPM International Inc. is a $6-billion, multinational company with subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. Build returns in your investment portfolio by leveraging the power of RPM’s strong brands and long-term growth strategy that has generated 47 consecutive years of cash dividend increases.

JESSICA ROBINSON Executive Director, Michigan Mobility Institute

“

FORTUNE 500

F O R T U N E J U N E /J U LY 2 0 2 1 1 0 9

FORTUNE 500 The name is synonymous with business success. This is the 67th edition of our ranking of America’s largest companies. Together, the 500 corporations on this year’s list generated $13.8 trillion in revenue, or some two-thirds of the U.S. economy. Explore the pages ahead to see who prospered, who stumbled, and why.

PHOTOGRAPH BY JARREN VINK

FORTUNE 500

A MASSIVE CRISIS, A GREAT REIMAGINING During the COVID-19 pandemic, new technologies broke through and achieved scale as never before — in a revolution that reverberated through our signature ranking. Here’s how those changes could reshape big business for years to come.

By Brian O’Keefe

T H E PA N D E M I C could have been a jarring setback for Square. Cofounded in 2009 by CEO Jack Dorsey—also, of course, famously the cofounder and CEO of Twitter—the company is perhaps best known for its distinctive, white credit-card readers that make it easy for small businesses to process payments from a smartphone or tablet. Square barreled into 2020 with powerful momentum, with its sales having soared 43% in the previous 12 months. But the lockdowns that began last March as COVID-19 spread across the U.S. dealt a devastating blow to Square’s core customers: mom-and-pop businesses. With one business line under mor-

tal threat, Dorsey and his team had another innovation ready that was made for the moment—the Cash App payment service. Created to compete with the likes of PayPal, PayPal-owned Venmo, and Apple Pay, among others, Cash App exploded in popularity thanks to capabilities that other digital wallets couldn’t match. Because Cash App allows direct deposits, many users had their stimulus checks sent straight to their Cash App accounts. And the fact that the digital wallet allows users to trade Bitcoin and fractional shares of stocks meant that Cash App was in a perfect position to, ahem, cash in when cryptocur-

rency prices and day trading took off. By December, Cash App had more than 36 million active monthly users, or a 50% gain in one year. Square rode Cash App’s success to explosive sales growth—and its first-ever spot on the Fortune 500, at No. 323. For the year, its revenue jumped by just over 100%, to $9.5 billion. And its shareholders were rewarded with a nearly 250% return for 2020. That propelled its market value from $20 billion last March to $100 billion by year’s end. Not every company on this year’s Fortune 500 can match Square’s performance, of course. Most can’t come close. But in a couple of significant ways, the story of Square is emblematic of the 500 in 2020 overall: First, the world became even more digital—and fast. And second, new technologies suddenly broke through and achieved tremendous scale. That potent combination of trends has opened up vast new opportunities for businesses that can quickly adapt to a world of rewritten rules. Call it the Great Reimagining. The examples range from the everyday to the extraordinary. Think of Chewy, the online pet supply business (recently split off from retailer PetSmart) which grew sales 47% last year to join the list for the first time at No. 403, as homebound puppy owners ordered pee pads from their phones. Or Pfizer, No. 77, which partnered with German biotechnology company BioNTech to develop a vaccine for COVID-19 in record time, thanks to its revolutionary approach of using messenger RNA to create an immune response—opening up endless possibilities for synthetic biology. That’s not to say that there wasn’t plenty of economic pain last year. A total of 108 companies on this year’s

F O R T U N E J U N E /J U LY 2 0 2 1 1 1 1

THIS YEAR’S LIST

TECH-DRIVEN RESILIENCE Over the past decade, the market value of the tech sector as a percentage of the Fortune 500 overall has risen steeply. This year the 47 technology companies on the list had a combined market value of $9.6 trillion out of a total $32.7 trillion. The impact of the pandemic caused total profits to drop 29.8% to $859 billion. But analysts project that earnings will rebound quickly. FORTUNE 500 YEARLY CUMULATIVE PROFITS

PROJECTION

$2.0 TRILLION

TECH MARKET CAP SHARE 29% MARKET CAPITALIZATION OF TECH COMPANIES AS A SHARE OF LIST TOTAL

30%

GREAT RECESSION

DOTCOM BUST

PANDEMIC RECESSION

1.5 20

1.0

15 2020 $858.6 BILLION

0.5

0 FY 1995

2000

2005

2010

2015

2020 2023

2010

2015

2021

SOURCES: COMPANY FILINGS; S&P GLOBAL

500 list lost a combined $224 billion—the biggest loss since the Great Recession. Energy, hotels, airlines, and restaurants were all hit hard. But the strength of tech—sector revenue grew by $94 billion—served as a buoy. Overall, the Fortune 500’s sales fell by 3.1% to $13.8 trillion, which was still the second biggest total in the history of the list. And the U.S. economy’s booming 6.4% growth in the ﬁrst quarter of 2021 suggests that the 500 could be reaching new highs as soon as next year. FO R C O M PA N I E S seeking to lean into that growth and build on it, there is widespread understanding

that returning to a pre-pandemic approach to digital transformation won’t cut it. That lesson was driven home as consumers changed overnight how, where, and why they buy things, and plunged headlong into using brand-new technologies. “What CEOs suddenly realized,” says Jeff Wong, global chief innovation officer at EY, “is that they need to accelerate all that transformation that they had planned on from before but hadn’t quite executed against.” Continues Wong: “I think what we’re seeing is that it’s actually accelerating as we come out of this pandemic.” Consider that a recent survey of more than 300 CEOs of big compa-

nies conducted by EY found that 65% of them plan to spend more investing in transformation over the next three years than they did in the past three. And 68% say they’re planning a major investment in data technology. Square is certainly not slowing down. Over the ﬁrst three months of 2021, sales at Dorsey’s company were 266% higher than those from the same quarter last year. Square also introduced new features to Cash App, including the capability for users to send Bitcoin to friends or family for free. A year or two ago, making that kind of transaction happen so easily might have seemed unimaginable. Not anymore.

FORTUNE 500

Exxon Mobil

EXXON

Revenues $181.5 billion

Net Loss $22.4 billion

Employees 72,000

Total Return to Shareholders (2010–2020 annual rate) –1.9%

10 500 Rank

Coming oﬀ a disastrous year financially, the oil giant is facing intense pressure from activist investors to finally embrace sustainable energy—and betting that higher crude prices will bring its traditional business roaring back.

By Katherine Dunn

F O R T U N E J U N E /J U LY 2 0 2 1 1 1 3

UNDER SIEGE FLOATING FACTORY Exxon Mobil’s new Liza Unity offshore production vessel, at right, under construction in Singapore, will operate off the coast of Guyana.

FORTUNE 500

EXXON MOBIL

W H E N I T C O M E S to trash-talking, Exxon Mobil CEO Darren Woods isn’t exactly on par with, say, NBA legend Michael Jordan or former Dallas Cowboys All-Pro Deion “Prime Time” Sanders. At least in public, the buttoned-up Big Oil executive typically speaks in a near-monotone drone, softened slightly by his light Texas drawl, and chooses his words so carefully as to suggest a curated blandness. That understated presentation style was on display once again in late April when Woods announced the oil and gas giant’s first-quarter earnings. And yet, behind the Exxon-speak, there was an unmistakable note of triumph, perhaps even a hint of defiance. On the webcast call with Wall Street analysts, Woods pointed out that a year of tumult—a pandemic, the resulting waves of lockdowns, and tumbling crude consumption—had done nothing to change the energy giant’s perspective on the world. And he offered that Exxon’s $2.7 billion profit in the first three months of 2021, helped by rebounding oil and gas prices, was proof that the company’s strategy was right. “We knew economies would recover, populations and living standards would continue to grow—ultimately driving demand for our products and industry recovery,” Woods said. Meanwhile, he noted, the efforts by the company over the past few years to restructure and reinvest had paid off: “We are a stronger company with an improving outlook.” Translation: Take that, haters. The strong quarter was a muchneeded win both for Woods and his company after a year in which once-mighty Exxon has suffered a series of painful indignities. Collapsing oil prices caused Exxon’s revenues to sink by some $83 billion in 2020 compared with the year before and

CRUDE AWAKENING Before this year, Exxon Mobil, which has ranked No. 1 on the 500 a total of 13 times, had never been out of the top five. But a pandemicdriven plunge in oil prices helped send it tumbling.

FORTUNE 500 LIST POSITION No. 1

EXXON MOBIL 10

20 CHEVRON 30

40 1995

2000

2005

2010

2015

2021

NOTE: LIST YEARS

CRUDE OIL PRICE $125

100 MAY 10, 2021 $64.92

0 2000

2005

2010

2015

2020

SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION

sent the energy titan tumbling in this year’s Fortune 500, from No. 3 down to No. 10—Exxon’s lowest-ever spot in the rankings. Worse still, after more than two decades without a negative quarter, the company took a record $22.4 billion loss in 2020. That made it the biggest money-loser in the Fortune 500 by a wide margin. In August, Exxon was removed from the Dow Jones industrial average after 92 consecutive years as a member of the 30-company index, and replaced by software giant Salesforce. Adding further insult to injury, Exxon’s longtime rival Chevron (No. 27 on this year’s Fortune 500, down 12 spots) kept its place in the Dow. That had to sting. By April 2021, both Moody’s and S&P Global had downgraded Exxon’s debt for a second time in just over a year. The reason? Increased pressure to address climate change combined with the highest debt levels in Exxon’s history—a by-product of aggressive investments intended to boost the company’s oil and gas production. The company’s net debtto-capital ratio has risen from 16.5% to 27.8% in the past ﬁve years, and its total debt load increased by nearly $21 billion last year alone. The setbacks have given an oil-rigsize opening to Exxon’s critics, who argue that the company’s fortunes have been on the wane for years. Look no further than its market performance. Exxon has long enjoyed a reputation among investors as perhaps Big Oil’s most disciplined operator—so cash-rich that it could invest during downturns and capitalize in booms. Love it or hate it, Exxon was the oil stock you could count on. But over the past ﬁve years, its shares have fallen 32% while Chevron’s have risen 6% and the S&P 500 has soared 102%. Exxon also lags rivals

F O R T U N E J U N E /J U LY 2 0 2 1 1 1 5

T H I S PA G E A N D O P E N I N G S P R E A D : C O U R T E S Y O F E X XO N M O B I L

RANK NO. 10

BP (down 16%) and Shell (down 21%) over the same period. The news, reported by the Wall Street Journal in January, that Exxon and Chevron had held preliminary merger discussions raised even more questions about the future direction of the company. (Exxon declined to comment on the report.) Underpinning all the tumult is a suspicion that Exxon’s longestablished world view—of oil and gas being at the center of economic growth for decades to come—has become ﬁnancially shaky, even deeply risky, in a new age of energy transition away from fossil fuels and toward more sustainable sources. While peers like BP, Shell, and France’s Total have made commitments to reach net-zero carbon emissions by 2050 and have said they will accelerate investments in wind and solar, Exxon has dragged its feet on investing in anything outside its core oil and gas business. Sensing weakness, activist investors—led by a newly created investment ﬁrm called Engine No. 1—have launched a proxy battle challenging Exxon over its lack of action on an alternative energy strategy. They are seeking to remake the company’s

REBUILDING TRUST Darren Woods chats with an employee at an Exxon town hall in March. The CEO had some early stumbles communicating with the company’s workforce.

board with a slate of four new directors who, they argue, can help guide Exxon’s long-overdue evolution. In response, Woods has announced a series of overhaul initiatives—in particular, the launch of a new business to commercialize Exxon’s low-carbon technology—that have been received with raised eyebrows by a wide range of skeptical observers, who view the moves as half measures and distractions. As Fortune went to press, the two sides were gearing up for a showdown at Exxon’s annual meeting in late May. Problems are brewing for Woods inside Exxon, too. Morale has been hurt by the company’s plan to lay off 15% of its workforce, cutting some 14,000 jobs, including contractors. And four years into his tenure as CEO, Woods has become a divisive ﬁgure for many at the company, according to interviews with current and former Exxon employees from all levels and departments. He is criticized by some

as lacking the blustery defiance and swagger of his predecessors in the corner office, and by others as not being more of a visionary change agent. Woods insists that the company’s strategy doesn’t rely on higher oil prices. But he appears to be banking on the success of a classic Exxon tactic in times of trouble: push ahead and wait for the cost of a barrel to rise. The higher that crude goes—the price surged from $37 at the end of October to $68 as of late May—the better the odds that the strategy succeeds. And at a moment when the company arguably is under more pressure to change than at any point in its 135-year history, the bigger question is this: Does it even want to? WO O DS S O U N DS R E L A X E D and confident. In a phone conversation with Fortune in early April, he is reflecting on the turbulence of the past year. Painful as it might have been, 2020 was “a pivotal year” for Exxon, he says, “not only because of what happened with the pandemic and the economy and the demand for the products that we produce, but it was also a time when I think several things came together.” The CEO and his leadership team had just completed a reorganization plan in the fall of 2019, he explains. And the fallout from COVID-19 pushed the entire organization to move faster. “The pandemic really accelerated the effort there and gave the organization a better understanding of the urgency.” Exxon didn’t appear to be in need of a major overhaul when Woods succeeded Rex Tillerson as chairman and CEO on Jan. 1, 2017. Indeed, in Woods’ first full year at the helm, the company earned a hefty $19.7 billion profit, and its “return on average capital employed”—a metric tradition-

FORTUNE 500

EXXON MOBIL

ally beloved by the company—was 9%, or more than double that of the previous year. But its debt had risen sharply in the years before Tillerson’s departure to serve a stint as secretary of state in the Trump administration. And it soon became clear, inside and outside the company, that Tillerson had left Woods with a mess to clean up. Among Tillerson’s missteps: overpaying in the $35 billion acquisition of the Texas shale company XTO in 2010, when the shale boom was in full swing. To jump-start growth, Woods adopted a quintessentially Exxon approach: He decided to bet on big projects that would pay off handsomely when oil prices rose. His reorganization plan called for the company to bump up operational spending by $30 billion to $35 billion every year through 2025, focusing on a “big ﬁve” of particularly promising, largescale oil and gas projects—from the Permian Basin in Texas to Guyana to Mozambique—while selling off other assets. Woods projected that plan would result in a jump to 5 million equivalent barrels of oil per day, and double earnings, by 2025. Then COVID-19 changed the math. Global oil demand in 2020 dropped a historic 8.8 million barrels per day from 2019, according to the International Energy Agency, and prices fell even more dramatically. (The cost of a barrel even dropped brieﬂy in trading to negative $38 per barrel in April 2020.) Woods immediately slashed capital spending by 30% and said costs would be reduced by $6 billion through 2023. Exxon’s dividend, however, was one cost that remained untouched. Unlike BP and Shell, which both reduced their dividends for 2020 in the wake of large losses,

RANK NO. 10

WHEN THE WELL RUNS DRY Exxon Mobil has long been one of the most profitable companies in the 500. But its $22.4 billion loss last year was the 14th biggest in the history of the rankings.

EXXON MOBIL REVENUES $500 BILLION

400 FY 2020 $181.5 BILLION

300

200

100

0 2010

2012

2014

2016

2018

2020

SOURCE: COMPANY FILINGS

PROFITS $40 B.

–10 FY 2020 –$22.4 BILLION

–20 2010

2012

2014

2016

2018

SOURCE: COMPANY FILINGS

Exxon kept its payout steady—even borrowing to keep it fully funded. And as he was leading the company through these challenges, Woods was struggling to ﬁnd his footing with Exxon’s workforce, according to current and former employees. His two forerunners in the CEO job were a tough act to follow as front men. Lee Raymond—who in 1999 orchestrated the merger of Exxon and Mobil, reuniting two offspring of J.D. Rockefeller’s Standard Oil, and led the combined company until 2005—was famously hardcharging. And Tillerson was a brash and charismatic leader in his own right. Woods, by contrast, is more publicly reserved. An Exxon lifer who studied engineering at Texas A&M, he is a product of the company’s conservative, command-and-control culture and was regarded as sharp and straight talking when he landed the job. But his leadership style has failed to inspire some employees and rubbed others the wrong way. As an example, current and former employees point to a disastrous town hall meeting about a year into Woods’ tenure as CEO. Speaking off-the-cuff, Woods defended the company’s rigidly competitive, deeply unpopular employee ranking system as meritocratic. He also related a story about ﬁring a crying female employee, only for her to come back and thank him a year later for giving her the chance to pursue new opportunities, according to employees who saw the town hall. The meeting’s overall effect was to give an impression of Woods as tone deaf and arrogant. Internally, the appearance was regarded as a “car crash,” says one former senior manager, and word spread rapidly within the company. In response to questions about the town hall, an Exxon spokesperson provided

F O R T U N E J U N E /J U LY 2 0 2 1 1 1 7

$20.7 billion Amount by which Exxon Mobil’s debt load increased in 2020 to a total of $67.6 billion as it maintained its dividend and invested in new projects. The company’s net debt-to-capital ratio has risen from 16.5% to 27.8% over the past five years.

this statement: “Darren continues to engage and talk with employees on a regular basis, takes part in town halls, and listens to employee feedback and considers it as he leads the company.” E N G I N E N O. 1 did not waste any time announcing itself to the world. On Dec. 7, the newly formed activist investment firm, with a bankroll of $250 million deployed in public markets, launched its very first campaign, with Exxon as the target. As an opening salvo, the fund said in a statement that “no company in the history of oil and gas had been more influential,” but that “it is clear, however, that the industry and the world it operates in are changing and that Exxon Mobil must change as well.” The San Francisco–based firm was founded by Chris James, a hedge fund veteran and cofounder of Partner Fund Management and Andor Capital Management. It’s backed in the Exxon campaign by some of the largest pension funds in the U.S., and it asserts that Exxon’s board of directors does not include members with sufficient knowledge of the energy industry to lead a green transition. They have picked four candidates to join the board who, they say, have the right credentials. One candidate is the former CEO of Andeavor, the U.S. oil and gas company; another led the transformation of a Finnish energy company’s shift toward renewable fuel.

One might view the Engine No. 1 campaign as the most formidable challenge yet to Exxon’s long history of recalcitrance on climate change. Former CEO Raymond questioned the validity of climate change on multiple occasions. Under Tillerson, Exxon publicly acknowledged that climate change was real. But the Union of Concerned Scientists alleged in a report that, behind the scenes, the company was continuing to fund ﬂawed research to muddy the science on the changing climate. Exxon says the report “deliberately misstates” its position on climate change, and that it “inaccurately” accuses trade organizations to which Exxon belongs of “socalled climate denial.” The long shadow of Exxon’s record is reputational but also legal: The company is currently facing 20 lawsuits from local and state governments that are related to climate change, says Michael Gerrard, founder of Columbia University’s Sabin Center for Climate Change Law. Gerrard says that makes Exxon “far and away” the top corporate defendant for climate change–related lawsuits in the U.S. So far, no such suits have been successful; in 2019, Exxon won a case brought by the New York attorney general, which alleged that the company had downplayed the risks it faces from climate change. Woods himself has expressed a more open, transparent approach to addressing climate change. He has

spoken frequently about the 2015 Paris Agreement, and devoted such long sections of investor presentations to the topic that even longtime critics have sometimes found it jarring. At one Exxon annual meeting, Woods spoke about the environment for the ﬁrst 20 minutes, says Kathy Mulvey, the accountability campaign director in the climate and energy program at the Union of Concerned Scientists. “If you were an alien dropped from outer space into that meeting,” says Mulvey, “you would have thought this was a company focused on solving climate change.” But critics say that the kinder, gentler rhetoric on climate change isn’t matched by Exxon’s actions. Consider, for instance, the company’s claims that its emissions cuts are in line with the Paris Agreement. Exxon’s targets—to slash upstream emissions intensity by 15% to 20%, and methane intensity by 40% to 50%, by 2025—cover emissions only on projects that Exxon operates itself. (In 10-K ﬁlings, the company reported that about 13% of its wells are non-operated.) And they extend only as far as Exxon’s own emissions or energy used on those projects, known as operating emissions or “Scope 1” and “Scope 2.” BP and Shell have included targets for Scope 3, which covers the largest portion of emissions tied to oil and gas—those that come from burning the fossil fuels to power cars and airplanes. Exxon says it limits report-

FORTUNE 500

ing to Scope 1 and Scope 2 emissions because they are under the company’s direct control, and it’s clear how to report them, whereas Exxon argues Scope 3 emissions data is less consistent and can be misleading. Woods has been dismissive of the more ambitious targets of his rivals. In a March 2020 call with investors, he referred to such targets by peers as a “beauty competition,” remarking that selling off oil and gas assets to a “less effective operator” has “actually made the problem worse.” Instead, Woods talks about solving the problem more “holistically.” In response to questions about the company’s approach to climate change, an Exxon spokesperson said that the company had invested more than $10 billion since 2000 in lower-emissions technology, and added: “We are committed to doing our part to address the risks of climate change and being part of the solution.” But one former employee says ruefully that the true attitude inside Exxon is that consumers need its products, whether they like the company or not: “We don’t dress up our pig at all. We don’t even put lipstick on the pig. We just say, ‘Everyone likes bacon, so shut up.’ ” Of course, even the more climatefriendly policies of Exxon’s European rivals may not be going far enough to make a meaningful difference. In a landmark report released in late May, the Paris-based International Energy Agency said that in order to

CLIMATE OF MISTRUST Environmental activists rallying outside the New York Supreme Court in October 2019. The New York attorney general sued Exxon for allegedly misleading investors about its financial risk from climate change, but Exxon won the case.

have any hope of cutting emissions to net zero by 2050, no new investments must be made in oil and gas ﬁelds at all from now on—a pledge that none of the major oil and gas companies have made. W H E N I T C O M E S TO the question of what, exactly, an oil and gas giant should do about climate change, Exxon has come to a different conclusion. On Feb. 1, Woods announced the launch of a new business, Low Carbon Solutions, to commercialize technologies that Exxon has been developing. It will start, ﬁrst and foremost, with carbon capture and storage, or CCS—a process in which carbon dioxide from burning or extracting fossil fuels is trapped and prevented from reaching the atmosphere. Woods said Exxon would invest $3 billion in Low Carbon Solutions from 2021 through 2025. Engine No. 1 claims the company has changed its rhetoric on climate change in response to investor pressure. But Woods says the timing was simply right. Wind and solar power “while important” aren’t a “complete solution,” he says, and the company

has been working on CCS technology for years. The aim is not just to offset their own emissions but to build out a new business: Given the explosion of net-zero commitments by companies, those same companies are going to need a way to offset their emissions, he says. There has also been, of course, a shift in the political winds. “I think the Biden administration change, and the emphasis that they’re putting on that, put an accelerant in that process, and so really provided the underpinnings for us to take that work that we’ve been doing on technology and carbon capture and change that into a full-blown business,” says Woods. But so far the new venture hasn’t announced any projects beyond what it had already made public. Experts and analysts also say that without new incentives, ﬁrst and foremost a carbon tax—an option that Exxon Mobil has publicly backed since 2009—it is not currently economical to launch large CCS projects in the U.S. Exxon doesn’t disagree. When it comes to making CCS projects proﬁtable, “I would say that the U.S. is not there in terms of incentive structure to make something like this happen,” says Guy Powell, who has led Exxon’s CCS ventures internally since 2018 and is now helping to lead Low Carbon Solutions. “But we do see potentially the political will to put in the right incentives, regulatory and legal structures in place, to make that happen.” The company is engaging with policymakers, Powell said, and has other projects in the works. While Exxon asserts that it is the world’s leader in capturing CCS, critics argue that the expertise comes with a catch: The company’s approach is focused on “enhanced oil recovery,” a method that injects CO2 into the

DREW ANGERER—GET T Y IMAGES

EXXON MOBIL

F O R T U N E J U N E /J U LY 2 0 2 1 1 1 9

R ANK NO. 10

STOCK PERFORMANCE 5-YEAR ENDING MAY 18, 2021 80%

I N T H E M O N T H S since Engine No. 1 went public with its proxy battle against Exxon, the stakes of the showdown between the fund and the energy giant have steadily been raised. In what appears to be a direct response to Engine No. 1’s proposed slate of new directors, Exxon has added three new members to its board since the start of the year, including the former CEO of the Malaysian state energy company as well as activist investor Jeffrey Ubben, the founder of the San Francisco–based hedge fund ValueAct Capital. But Engine No. 1’s campaign continues to gain supporters. It has been backed publicly by three of the largest pension funds in the U.S.—Calpers, Calstrs, and the New York State Common Retirement Fund—as well as Legal & General, a U.K. asset manager with more than $1 trillion in assets.

CHEVRON

S&P 500 INDEX

EXXON MOBIL

ROYAL DUTCH SHELL

ground in order to push more oil out, rather than solely long-term sequestration for the explicit purpose of reducing carbon emissions. Powell says that, indeed, most of the current CCS efforts in the U.S. are for the purpose of oil extraction, and that the technique, used by the oil and gas industry for decades, requires “different applications of technology and operations” than long-term sequestration. But he argues that the end result is the same. “It is a different process, but the net result is that the CO2 stays securely in the ground,” says Powell. Some industry analysts are openly skeptical about the value of the new venture. “It’s more than a concept, but it’s a direction rather than a big capital shift,” says Alastair Syme, a managing director at Citi who follows Exxon. “I would interpret that as part of the lobbying effort.”

6.1%

101.6%

–20 –15.6% –20.5% –40

–32.4% SOURCE: S&P GLOBAL

Four major proxy advisers, including Institutional Shareholder Services and Glass Lewis, the two largest voting advisories in the U.S., have offered Engine No. 1 support for at least some of its proposed board members. Said Glass Lewis in its report: “While Exxon claims to have evolved its strategy and maintained its historical leadership position among oil majors, our review finds the company’s competitive position and financial returns have eroded, and its stated strategy to address the underlying reasons for this diminished performance is generally insufficient.” The night before the vote, the campaign won another coup when Reuters reported that BlackRock, the world’s largest asset manager, had voted for three of Engine No. 1’s four candidates. The success of the vote would hinge on the support of other institutional giants Vanguard and State Street. Woods has been aggressive in making his case. Responding to a question from an analyst in the first-quarter earnings call, the CEO staunchly defended the expertise of Exxon’s current board, and said the

company has changed how it engages with shareholders. “I think we are responding to the feedback that we get,” he said. Engine No. 1 says that Exxon has missed an opportunity to have a serious debate over what should be done about climate change in the long term. Before the campaign, “Exxon’s proud answer was nothing,” says Charlie Penner, head of active engagement at Engine No. 1 and the leader of the Exxon proxy battle. “But once there was a risk of losing board seats, rather than having that debate, they just threw on the other team’s uniform”—that is, an energy-transition uniform—“and tried to avoid it.” Will the campaign force real change at Exxon, even if it doesn’t unseat any board members? Industry observers are divided. Some say it has served as a warning shot that the world is changing, and Exxon is not immune. Others say it’s likely that the oil giant will get back to business as usual—especially if oil and gas prices continue to rise, driving up the value of Exxon’s shares in the process. As of late May, Exxon’s stock was up 41% since the start of the year. When asked what questions Exxon employees ask him about the future of the company, Woods is circumspect. “The questions internally are very consistent with the external questions,” he says, “which is, you know, given the demand and the desire for less carbon intensive energy sources, how does that demand realize itself with time? And what’s the impact on the company? And how do we think about managing through that transition?” He continues in a reassuring tone: “Our job here is to meet the evolving demands of society. And that’s what we have historically done.” Just don’t rush him.

C O N T E N T F R O M V I AT R I S

PROFILE 2021 | FORTUNE 500

Working to Redefine Health Care Global pharmaceutical company Viatris is betting that its infrastructure and expertise can help partners get medicines to more patients and markets worldwide.

“OUR COMPANIES COMBINED IN A REALLY COMPLEMENTARY WAY. TOGETHER, AS VIATRIS, WE HAVE ALL THE REQUISITE ASSETS UNDER ONE ROOF AND HAVE BUILT A POWERFUL BUSINESS PLATFORM SET UP FOR FUTURE GROWTH.” ROBERT J. COURY EXECUTIVE CHAIRMAN, VIATRIS

VIATRIS, CREATED FROM THE consolidation of Mylan and Pﬁzer’s legacy Upjohn unit, was formed in November 2020. It could not have emerged at a more necessary time— during a worldwide pandemic. “More than ever, governments, patients, and health care systems are seeking access to high-quality medicines and innovative solutions,” says Michael Goettler, Viatris CEO. The company’s global vision of providing the broadest possible access to trusted medications, regardless of geography or circumstance, is aimed squarely at meeting those demands.

“BIOTECH COMPANIES ARE PLAYING A CRITICAL ROLE IN HEALTH CARE TODAY. VIATRIS CAN BE THEIR PARTNER OF CHOICE™ TO ACCELERATE PATIENT ACCESS TO THEIR INNOVATIONS IN ALL CORNERS OF THE WORLD.” MICHAEL GOETTLER CEO, VIATRIS

Viatris has already addressed challenges specific to COVID-19, such as ramping up production of the antiviral medication remdesivir and working with government authorities in India to expand access to important medicines. But the U.S.-based company, which offers more than 1,400 approved molecules across a wide range of therapeutic areas in more than 165 countries and territories, is positioned to do much more. Mylan brought a strong product pipeline and diversified portfolio to the merger that formed Viatris, and Upjohn offered a meaningful presence in China, says Robert J. Coury, executive chairman of Viatris. “Our companies combined in a really complementary way. Together, as Viatris, we have all the requisite assets under one roof and have built a powerful business platform set up for future growth.” The company’s business model is based on seeking worthy partners and facilitating their ability to reach expanded markets. “Powered by Viatris’s one-ofa-kind Global Healthcare Gateway®, our team is ready to execute on creating value for our stakeholders and partners by leveraging our unique global infrastructure to meet vast health care needs,” Goettler says. The company has a long history of successful partnerships, including its work with Gilead to help deliver infectious disease medicines to larger populations. Going forward, Viatris will seek complex, inventive, differentiated products that can leverage its commercial and technical strengths. “Biotech companies, for example, are playing a critical role in health care today. Viatris can be their Partner of Choice™ to accelerate patient access to their innovations in all corners of the world,” says Goettler, who notes that Viatris offers scientific, manufacturing, regulatory, medical, and legal expertise, in addition to its commercial capabilities. Restricted access to critical medications is an ongoing problem across the globe, and many patients will remain underserved long after the pandemic loosens its grip. Viatris is staking its future on getting them what they need. ■

Accelerate the Possibilities Powered by VIATRIS™, the GLOBAL HEALTHCARE GATEWAY accelerates getting medicines and healthcare solutions into the hands of those who need them most, anywhere in the world with: ®

• Global commercial reach across all channels • Access to our global supply chain • Expansive regulatory expertise • $ FRVW Hɝ FLHQW PDQXIDFWXULQJ SODWIRUP TM

Learn how Viatris is the PARTNER OF CHOICE at Viatris.com/globalhealthcaregateway

k 9LDWULV ΖQF $OO 5LJKWV 5HVHUYHG b9Ζ$75Ζ6 WKH 9LDWULV /RJR WKH *OREDO +HDOWKFDUH *DWHZD\ ORJR DQG 3$571(5 2) &+2Ζ&( are trademarks and GLOBAL HEALTHCARE GATEWAY is a registered trademark of Mylan Inc., a Viatris company.

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INSIDE THE AD, AD, AD, AD WORLD OF YOUTUBE Alphabet’s online video service has grown from tween pastime to one of the world’s largest sellers of digital advertising. Now it’s poised to overtake the TV ad market—if it can maintain control of the wild universe of content it created.

By Aaron Pressman

PHOTO ILLUSTRATION BY CHARIS TSEVIS

500 Rank

Alphabet

Revenues $182.5 billion

Profits $40.3 billion

Employees 135,301

Total Return to Shareholders (2010–2020 annual rate) 19.4%

FORTUNE 500

VIDEO VISIONARY? CEO Susan Wojcicki was the platform’s first cheerleader within the Googleplex and has led the company through massive growth and unprecedented controversy.

FO R D ECA D E S, the Super Bowl has been, well, the Super Bowl of the advertising world. The biggest stage, the biggest brands, the biggest audience, and, for the channel that hosts it, the biggest payday. In February, 96.4 million people tuned in to watch the big game and the ads that ran along with it. Also in February, Vlad and Niki Vashketov posted a handful of videos to their YouTube channel. The short, manic clips show Vlad, a gangly and expressive 8-year-old, and his doeeyed 5-year-old brother, Niki, doing PHOTOGRAPH BY JESSICA CHOU

kid stuff: persuading their mom to get them a pet, building a giant Lego house, playing with toy cars. Cumulatively, the boys’ three most popular videos of the month have amassed more than 170 million views—and counting. The Vlad and Niki channel, which launched in 2018 when Vlad, with the help of his dad, Sergey, posted a four-minute video of Vlad playing with a toy dog and some colored blocks, now has 68 million subscribers on English-language YouTube, making the brothers the third most

popular “creators” on the platform. (Globally, Sergey says, the boys have a total of 173 million subscribers in various languages.) The Vashketov family declines to say how much it makes from its share of the revenue from the ads that play against its videos on the platform—not to mention the brand sponsorship deals, merchandise sales, and toy licensing rights the channel has birthed. But analysts who track the creator industry say that, all in, the top channels on YouTube are earning $30 million to $50 million per year. That puts them at the pointy end of the pyramid of some 2 million creators who participate in YouTube’s advertising program and typically get a 55% cut of the ad revenue they generate. It’s boom times for YouTube and its creators. The Google-owned service, bought for just $1.65 billion in 2005, reported ad revenue of $20 billion last year (plus what analysts say are billions of dollars more from subscriptions to products like YouTube Premium, the financial details of which the company doesn’t disclose). Some context: If YouTube were a stand-alone entity, that would make it the world’s fourth-largest seller of digital ads, after its parent company, Alphabet, Facebook, and Amazon. But what really has Wall Street salivating is the question of just how big it might get. YouTube’s 2020 revenue was up 31% from 2019, compared with a 12.8% increase for its parent, Alphabet. (One note that puts something of a damper on analysts’ exuberance: We still don’t know how much of that growing pool of money is profit; between creator payouts and tech costs, YouTube has significant expenses.) A big factor driving YouTube’s ad ascendance is the decline of tradi-

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RANK: 9

IT ALL ADS UP YouTube has been in hot water with advertisers in the past— it was the subject of a major ad boycott in 2017—but the big names have come back in force.

tional broadcast and cable TV. After peaking at almost 101 million households in 2012, the pay TV audience dropped to 76 million last year and is forecast to shrink to less than half that by 2025, according to market tracking firm Convergence Research. Ad dollars follow the eyeballs. Spending on TV advertising dropped 12.5% last year, while video ads surged 30.1%. Indeed, the analysts at eMarketer are predicting that the amount spent on video advertising will surpass that of TV for the first time by 2023. “Everyone is looking for new ad opportunities for big advertisers,” says Kieley Taylor, global head of partnerships at mega ad agency GroupM. As the TV audience shrinks, she says, “we have to find other ways to talk to a lot of people.” If you want to reach a lot of people—and especially young people—YouTube is the place to do it. It’s the most popular social platform among almost all age groups, and the number of people under 50 using YouTube regularly tops the number of people in that same cohort who are watching traditional TV, a recent study by Nielsen concluded. In April, Pew Research said 81% of Americans use YouTube, compared with 69% for Facebook, the second most popular option. It’s no wonder then that for Gen Z, YouTube stars like the Vashketov brothers, Felix Kjellberg (a.k.a. PewDiePie), and Liza Koshy are as recognized and admired as big-name athletes and celebrities. For most of its life, YouTube’s dominance has depended on billions of mobile phone users watching videos. But it’s increasingly a force in the living room, where more people are watching smart TVs or connecting Roku, Apple TV, and other set-top boxes to watch YouTube on

TOP 10 U.S. ADVERTISERS ON YOUTUBE, PAST 12 MONTHS $ 202.8 MILLION

DISNEY 184.8

APPLE 125.7

HULU

125.1

PROCTER & GAMBLE 111.6

RIOT GAMES

103.9

LIBERTY MUTUAL AMAZON.COM EXPEDIA HBO VERIZON

a big screen. YouTube said 120 million people in the U.S. watched via a TV in December, up 20% from nine months earlier. And of the top ﬁve most watched services on connected TVs—Netﬂix, YouTube, Amazon Prime, Disney+, and Hulu—only YouTube and Hulu sell ads. T H I S G ROW I N G ad empire is the domain of YouTube CEO Susan Wojcicki, employee No. 16 at Google back in the 1990s, who has overseen the video service since 2014. Growing up in Palo Alto, her dad was the chairman of the Stanford University physics department, but Wojcicki insists she and her equally formidable sisters—Anne started DNA analysis company 23andMe, and Janet is a Ph.D. anthropologist and epidemiologist—had a pretty normal childhood, though hard work was highly valued. Later, in 1998, while working at Intel, Susan famously rented her garage to Google cofounders Sergey Brin and Larry Page. It wasn’t because she had a clue they would be so successful, she says. “I wanted the rent because I needed the money to pay my mortgage,” she

99.6 97.4 93.1 89.8

SOURCE: PATHMATICS, APRIL 2020 TO APRIL 2021 TOTAL DIGITAL AD SPEND ESTIMATES

recalls during a virtual interview held via Google’s Meet app. Wojcicki saw YouTube’s potential early; she says she was the first person to urge Brin and Page to buy the fledgling platform. And once they did, her background building out Google’s massive ad business made her the obvious candidate to run it. But it didn’t take long for Wojcicki to discover just how volatile a mix user-generated videos and big-name, image-conscious advertisers could be. YouTube repeatedly failed to filter out offensive content—effectively putting ads against racist, homophobic, and anti-Semitic videos. And in 2017, a who’s who of corporate America, including Coca-Cola, Walmart, Procter & Gamble, and Starbucks, pulled their ad dollars. The trifecta of lost ad money, a hit to Alphabet’s stock price, and a PR mess got YouTube’s attention. “We needed to work through those issues and to solve them in a way that worked for our users and our advertisers … That was critical for us,” says Wojcicki. Google expanded the use of its machine-learning A.I. software to screen for toxic content

FORTUNE 500

YOUTUBE

TUNE IN AND CASH IN YouTube is America’s favorite—or, at least, most used—social media app across age groups, though it’s hottest among the young: 95% of 18- to 29-year-olds say they use it, according to Pew Research Center. That audience is a boon to the service, which is riding the wave of growing video ad spending. SOCIAL MEDIA APPS USED BY U.S. ADULTS 81% YOUTUBE

80% OF RESPONDENTS

PROJECTED U.S. YEARLY AD SPENDING $100 BILLION

$88.95 BILLION

69% FACEBOOK 80

VIDEO AD SPENDING

$66.53 BILLION

40% INSTAGRAM

LINKEDIN SNAPCHAT TWITTER

TV AD SPENDING

REDDIT 10

0 2015 ’16

’17

’18

’19

’20 2021

2020

2021

2022

2023

2024

SOURCE: PEW RESEARCH CENTER

SOURCE: EMARKETER

and hired thousands of workers to ﬁnd and assess videos that might violate the company’s terms of service. The worst of the crisis passed, and advertisers trickled back. The reality, of course, is that the underlying issues that sparked that 2017 boycott have never entirely vanished (see: QAnon, 5G conspiracy theories, vaccine microchips). And so, as YouTube has grown, so has the infrastructure it has created to clean up its sludge-ﬁlled gutters. Today the system has four components—which chief product officer Neal Mohan

describes as the “Four R’s.” The most visible is “removal”—ﬁnding and spiking the most egregious content. Next comes “reduce”: shrinking the audience of borderline videos by downgrading them with YouTube’s all-powerful algorithm. (Mohan admits this gray area is a growing challenge: “There’s a lot of content out there that is very hard to categorize as crossing the line or not, particularly in the realm of misinformation.”) The third R stands for “raising up” videos from trustworthy sources, particularly on controversial topics.

For instance, when the CDC issued revised guidance for wearing masks on May 13, YouTube’s algorithms detected a potential for the spread of misinformation and curated a group of mainstream news reports on the topic, which it gave a prominent spot near the top of U.S. feeds. The final plank of the strategy is “reward”—i.e., promote the videos of creators who follow the rules. Keeping YouTube’s content safe—and therefore advertiser friendly—has become so critical that metrics the company uses to track its progress are included in the annual goals of Wojcicki and her top execs (these “Objectives and Key Results,” or OKRs, are the ultimate arbiters of success and failure inside the Googleplex) and, increasingly, are available to the public online. According to the latest data on the company’s site, the violative view rate—which measures the percentage of watched videos that violated the company’s policies—was between 0.16% to 0.18% in the first quarter, down from 0.17% to 0.20% a year earlier. (YouTube is surprisingly coy about the volume of videos watched on its site, but with more than a billion hours consumed per day, it’s fair to say that even 0.16% represents quite a lot of views.) For the most part, advertisers say they are impressed with YouTube’s progress. “I’m pretty confident that we are in a safe place,” says Ron Stoupa, chief marketing officer at art-supply chain Michaels, which has been increasing spending with YouTube since it started advertising on the service 18 months ago. YouTube’s “policies and tools work as intended the vast majority of the time,” adds Patrick Daley, vice president of media at Dick’s Sporting Goods.

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Some advertisers note that they hire outside companies to assess whether their spots are running alongside inappropriate content.“What we don’t do is allow our partners to check their own homework,” says Chris Paul, vice president of digital marketing at Verizon. “We have to make sure there’s an independent party giving us veriﬁcation and validation.” But while ad buyers may be feeling good about YouTube’s handle on its content, many watchdogs remain unconvinced. YouTube “has not taken enough steps” to reduce harassment and the spread of extremism, says Adam Neufeld, vice president of the Anti-Defamation League. “While they’ve announced various efforts and taken modest steps, these are both still massive problems.” Critics point to everything from COVID-19 misinformation to lies about election fraud as evidence that YouTube is still allowing dangerous videos to circulate on its platform. Wojcicki and members of her team allow that there’s still a way to go. “It’s something we’ll always be working on,” the CEO says. “There will always be the potential of people looking for PHOTOGRAPH BY JESSICA CHOU

A TWO-WAY STREAM Chief product officer Neal Mohan says YouTube doesn’t just reflect the world, ”YouTube impacts what’s happening out in the real world as well.”

ways to abuse the platform, and that’s why we need to make sure that we’re vigilant at all times.” T H E U N I Q U E three-pronged relationship between advertisers, YouTube, and its vast network of creators can create both controversy and opportunity. Last summer, when the murder of George Floyd by a Minnesota police officer sparked nationwide protests, YouTube was awash in videos providing information about the crime and about the experiences of other victims of police brutality. Some Black creators on the site had pledged to donate their ad proﬁts to organizations like Black Lives Matter and were encouraging viewers to click on their ads and watch them over and over as a way to show their support. Advertisers, unhappy about paying for these repetitive clicks, complained, and YouTube cracked down on the behavior. The company

says it replaced the donations with its own contributions to racial justice organizations, but for some creators the damage was already done. Beauty blogger Zoe Amira, who came up with the idea, calls the decision “disappointing.” “I guess I understood that it was in defense of their relationship with their advertisers,” she says, adding, on the other hand: “It should be left up to the watchers how they engage.” In other instances, the company has attempted to use its clout with advertisers to encourage them to reassess their strategies in a way that could both boost their business and support creators and content that’s been overlooked in the past. One such area is hip-hop videos, a popular YouTube segment that big advertisers have historically avoided. YouTube pitched advertisers to reexamine the genre, noting that virtually every music video top 10 list around the world is dominated by hip-hop artists and pledging that the latest technology could ﬁlter out videos with inappropriate lyrics or images. “If you’re an advertiser and you want to be connecting with audiences and relevant in culture, not

FORTUNE 500

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YOUTUBE

being in hip-hop is a big miss,” says Debbie Weinstein, VP of video global solutions at YouTube who oversees ad partnerships. While YouTube declined to share any details about the results of the effort, there is some suggestion that advertisers are starting to evolve. Until the summer of 2020, many companies included the phrase Black Lives Matter on their list of “banned words”—terms that thirdparty software uses to block their ads from appearing against a video, says GroupM’s Taylor. But as the platform filled with news and social commentary videos citing BLM, some of those advertisers agreed to strike it from their list, she says: “I’m encouraged by the self-reflection and maturation I see with many multinational brands.” FO R A L L I TS FO C U S on internal issues, perhaps the biggest threats to YouTube’s future come from the world beyond its platform. At the moment, it’s one of the few streamers to accept ads, but HBO Max has said it plans to go that route soon, and if Netflix or Disney ever decide to follow suit, the space could get crowded fast. On the social side, the same could be said of TikTok, the short-form video app that currently wears Silicon Valley’s “hot new thing” mantle. TikTok and Instagram, which has been aggressively rolling out new video features and additional ways for people to make money on the app, are also major risk factors when it comes to maintaining the creators’ loyalty. To keep the people who make its videos engaged, YouTube has been focused on expanding monetization options. Already, creators can sell monthly memberships, digital goods like online stickers, and merch—all

If YouTube were a stand-alone entity, it would be the world’s fourth-largest seller of digital ads, after its parent company, Alphabet, Facebook, and Amazon.

from within their YouTube sites and via YouTube’s payments system. Next up: a way to collect one-time payments, like a tip jar, for viewers who may derive a lot of value from a video. YouTube’s new 60-seconds-or-less video feature, Shorts, which debuted in India in September and in the U.S. in March, is already attracting 6.5 billion views per day. The snack-size option gives creators, who have complained that the demands of making enough content to remain a top YouTuber can be exhausting and overwhelming, a forum to create simpler videos (and, yes, helps YouTube challenge TikTok). YouTube set up a $100 million fund to pay creators for making shorts while it gets its ad systems up and running in the new format. YouTube has also been experimenting with ways to offer more value to advertisers. One such trial soon to be rolled out more broadly is access to the Google Merchant Center. The feature allows advertisers to place links to their products above relevant content, so users who search YouTube for, say, “best baseball glove” will see a bunch of glove ads hovering above the video. Of course, for any Big Tech player, the ultimate threat, especially right now, is regulation. Efforts are under-

way around the globe to crack down on social media, including proposals that would hold content-hosting companies legally liable for any dangerous posts or videos. Some of YouTube’s critics see such regulation as the only way to curb the spread of toxic content. “I don’t think we should expect private companies to save the world,” says University at Buffalo professor Yotam Ophir, who studies misinformation. “I don’t trust them … They can do much better, but they need the incentives to do so.” Wojcicki obviously disagrees. Some proposals could make it impossible for amateurs to post videos or otherwise handicap the creator economy that underpins her company. “We want to work with governments to make sure that they’re doing what’s right for citizens and communities,” she says. “But it might not have been thought through.” YouTube has certainly had its share of experience with unintended consequences and what can happen when things might not have been thought all the way through. So, as to whether its future will follow the path Wojcicki wills, or something quite different—you’ll have to smash that “subscribe” button to ﬁnd out. Additional reporting by Danielle Abril

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The demand for outsourcing increased sharply with the start of the pandemic. Providers of business processing services saw sales increase by 5.3% over the last two quarters of 2020, according to an Everest Group survey. Outsourcing partnerships go well beyond contracting to fulfill orders or perform administrative tasks. Partners help clients exploit new revenue streams, such as restaurants scaling up their takeout businesses or gyms supporting at-home workouts. Hunger for information technology talent has been another key driver of the outsourcing explosion. “The demand is there, from the postpandemic need to change business models, and there’s also the supply side asking, ‘How do you get this talent?’” says Michel Janssen, chief research officer for Everest Group. Consider what Vee Technologies—a company with 4,000 employees spread across multiple global delivery centers that handles business process outsourcing for U.S. health care providers, engineering firms, and other industries—does for clients with complex billing challenges. When COVID-19 hit, health care providers had to postpone elective procedures, which caused a cash crunch. Hospitals and physician groups relied more than ever on fast, accurate processing of accounts payable. Vee Technologies delivered—and went a step further. The company brought on additional workers to code the influx of telemedicine visits and trained them on the updated COVID-19 measures. It also made sure COVID-19-related bills qualified for prompt payment through expedited federal programs. “Some companies weren’t able to pivot like that,” says Patrick O’Malley, president of Vee Technologies. “We rapidly updated and implemented new coding protocols as applicable for each specific client and payer. The result is that telemedicine has become much more realistic for our customers to provide.” With new possibilities being unlocked today through strategic outsourcing, companies are capturing advantages that were unimaginable just a few years ago. The power of partnerships across businesses is just getting started. ■

STRONGER TOGETHER Through outsourcing, companies can capture advantages in a post-pandemic world. IN A WORLD RESHAPED BY THE COVID-19 pandemic, companies are looking for new business models and updated systems for a digital age. In this new normal, outsourcing partners can help corporations size up and seize opportunities in areas from information technology and logistics to revenue cycle management. Contrary to popular belief, outsourcing helps with more than just reducing costs. It also oﬀers an expanded team with fresh eyes for spotting hidden vulnerabilities, inefficiencies, and new markets. “It’s a partnership,” says Debi Hamill, chief executive officer of IAOP (International Association of Outsourcing Professionals). “It’s not ‘I have hired you. You’re my provider. I expect you do to these 10 things, period.’ It’s now ‘You’re my partner, so let’s sit at the table and ﬁgure out what’s the best way to do this.’”

Find out more at IAOP.org/2021GO100

CONTENT FROM VEE TECHNOLOGIES

Vee Technologies

■ -

VEE TECHNOLOGIES Extraordinary Outcomes

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Salesforce

Revenues $21.3 billion

Profits $4.1 billion

Employees 56,606

Total Return to Shareholders (2010–2020 annual rate) 21%

FORCE OF 500 Rank

137 Equal parts showman and visionary, Salesforce cofounder and CEO Marc Benioﬀ has acquisition—the $28 billion purchase of Slack—slow him down? Will anything? PHOTOGRAPH BY CHRISTIE HEMM KLOK

NATURE driven his software company to staggering, dizzying growth. Will the company’s latest

By Michal Lev-Ram

MARC’S MAGICAL MELANGERIE

M A RC B E N I O F F, the chief executive officer of Salesforce, is late to his own interview. At his own house. I’m killing time on the tech tycoon’s back patio, which overlooks the San Francisco Bay. It’s a gorgeous spring day by local standards, meaning the fog starts to burn off around midday. If I squint hard enough, I can see snippets of the red steel base of the Golden Gate Bridge on the horizon. Seagulls ﬂy overhead. Waves ripple tranquilly. It’s not a bad place to wait around. A handful of Salesforce executives are also milling about; they’re here for a meeting with Benioff too. One of them, the company’s chief design officer, is joining via videoconference. His ﬂoating face appears on a monitor PHOTO ILLUSTRATION BY JOSUE EVILLA

that’s been wheeled out for the meeting. Every once in a while, he pipes up: “Is Marc there?” It’s not clear where the CEO is, or what he’s doing. But no one seems fazed by his absence. Thirty minutes go by. An hour passes. Where in the world is Benioff? The possibilities are endless: He could be texting with primatologist Jane Goodall. Or hobnobbing with his pal, actor Matthew McConaughey, who has said he’s “inspired” by the CEO’s leadership. Or maybe FaceTiming with Bono because, why not? Spend a little time with Benioff, and you quickly realize that these are all things that occur regularly in his realm. Few CEOs have achieved Benioff ’s rock star–level status, complete with

chronic tardiness and “world tours”— Salesforce-speak for the inexhaustible roster of global events the company puts on (and at which Benioff is usually the featured speaker). He has a prodigious social media following, including more than 1 million Twitter followers. He has written books and even become a magazine mogul, thanks to his 2018 purchase of Time, which he bought with Lynne Benioff, his wife of 15 years. He hosts the hottest lunch and the most sought-after party at “Davos,” the World Economic Forum’s elite winter shoulder-rub in the Swiss Alps. And he uses all of these platforms to evangelize not just his company’s products but also his laundry list of causes, from alleviating

BENIOFF: DAVID PAUL MORRIS—BLOOMBERG VIA GETTY IMAGES; HARRIS: JIM LO SCALZO—EPA/ BLOOMBERG VIA GETTY IMAGES; ROCK: ANDREW LIPOVSKY—NBC/NBCU PHOTO BANK VIA GETTY IMAGES

Benioﬀ has cultivated an eclectic mix of well-known friends. Among his posse of celebri-pals are (from left, front to back) Vice President Kamala Harris, comedian Chris Rock, Dell Technologies CEO Michael Dell, musician Bono, actor Matthew McConaughey, illusionist David Blaine, primatologist Jane Goodall, General Motors CEO Mary Barra, musician Neil Young, musician Lenny Kravitz, Metallica drummer Lars Ulrich, World Economic Forum founder Klaus Schwab, and musician Will.i.am.

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DELL: DREW ANGERER—GETTY IMAGES; BONO: EMMANUEL DUNAND—GETTY IMAGES; MCCONAUGHEY: SLAVEN VLASIC—GETTY IMAGES FOR STXFILMS; BLAINE: SHIRLAINE FORREST—WIREIMAGE VIA GETTY IMAGES; GOODALL: DAVID LIVINGSTON—GETTY IMAGES; BARRA: PATRICK T. FALLON— BLOOMBERG VIA GETTY IMAGES; YOUNG: KEVIN WINTER—GETTY IMAGES; KRAVITZ: JASON KOERNER—GETTY IMAGES; ULRICH: RICH FURY—GETTY IMAGES; SCHWAB: GETTY IMAGES FOR GREENTECH FESTIVAL; WILL.I.AM: KELLY SULLIVAN—GETTY IMAGES

FORTUNE 500

RANK 137

Stewart Butterfield Cofounder and CEO, Slack

homelessness to saving the earth. It would seem a matter of principle for the 6-foot-5 CEO: He doesn’t take on anything if it’s not big and bold. That is the driving management creed behind Salesforce, the company he cofounded in 1999 and has been running for 20 years, and which for the past decade has grown revenues faster than any other major software firm. Among the Fortune 500, just one other technology company—Facebook—has experienced a higher rate of sales growth from 2010 to 2020. (Salesforce clocked in at a 29.1% annual rate—a multi–g-force pace that bumped the company’s rank from No. 190 on last year’s Fortune 500 list to No. 137 this year.) And there don’t seem to be any brakes on this rocket— at least none that Benioff is inclined to press. Over the next five years, he proclaims to me and anyone else who will listen, Salesforce will more than double its revenue, from $21.3 billion to $50 billion. Benioff is already nipping at the heels of his old employer, Oracle (ranked No. 80 on this year’s list), and he has his eye set on a far bigger rival—Microsoft (No. 15)—its fiercest competitor in enterprise apps like customer relationship management (CRM) software. “Salesforce is the only company that can challenge Microsoft in enterprise applications,” Anurag Rana, a senior analyst for Bloomberg Intelligence, tells Fortune. The two companies will soon compete in another arena too: the contest for collaboration tools that allow distributed workforces to interact in real time—something that has grown even more essential since the start of the pandemic. Benioff sees that future and wants to seize it: “We want to be the leader in work from any-

“Salesforce is investing a lot in Slack. I don’t mean money, I mean people. I mean like in the kind of platform integrations we’ve been trying to sell the world for a long time.”

where,” he says, as though the mere declaration were a five-year plan. But Benioff does have a road map: In December, Salesforce announced its planned acquisition of collaboration software maker Slack, a $27.7 billion deal that is expected to close this summer. Benioff wants Slack to be the future interface for his company’s tools. The colossal combo, which he’s referred to as a “perfect match,” is Salesforce’s biggest M&A move yet. Some analysts, though, are concerned the company overpaid for it. (The deal valued Slack at more than 30 times its revenue for fiscal 2021, its last reported year.) They are also worried that Slack, which struggled to grow at the same rate as some of its rivals during the pandemic, will ultimately dilute Salesforce’s margins at a time when they want the company to focus on profit, not revenue growth. “The Street gets very annoyed, because he’s constantly buying things, and he’s constantly going after [revenue] growth,” says Rana. Now Benioff has to show that his riskiest purchase yet was worth the price tag—that Slack can become the central hub for all of Salesforce’s software, and that this integration can not only happen quickly but also give his products such an edge that it

helps him get to his $50 billion goal. As onerous as that challenge sounds, it doesn’t appear to be enough for Benioff, who seems to yearn less for a top spot in the league tables than a place in the history books. In our conversations, few of the man’s sentences actually pertain to the products Salesforce sells—the stuff, for instance, that helps sales teams track their, um, sales. In their stead are sweeping proclamations about the steps he’s taking to ﬁx the world’s biggest problems. He wants to cool and clean up the atmosphere by planting 1 trillion trees by 2030, a campaign he launched in early 2020 with his pal Goodall. He wants to clean up the oceans too. “I’m pivoting in my life,” Benioff tells me. “Today, a lot of my visions and meditations and thoughts are much more about climate change.” The CEO now allocates, by his own assessment, between 50% to 75% of his time on causes outside Salesforce—a data point that one has to wonder if Wall Street is paying attention to. His employees (some 60,000 of them), the media, and a growing community of fellow “activist CEOs” are also watching to see how he’ll pursue these grand philanthropic goals while running his company, integrating Slack, competing with Microsoft,

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GROWTH IN REVENUES

2021 SALESFORCE CLOUD REVENUE BREAKDOWN

1,182% SALESFORCE

1,200%

SALES CLOUD $5.2 BILLION CUSTOMER RELATIONSHIP MANAGEMENT SOFTWARE

1,000 SERVICE CLOUD $5.4 BILLION APPLICATIONS FOR CUSTOMER SERVICE AND SUPPORT TEAMS

800

PLATFORM CLOUD AND OTHER $6.3 BILLION SOFTWARE TOOLS THAT ALLOW OTHER COMPANIES TO BUILD THEIR OWN APPS USING SALESFORCE APIs (A.I., DATA ANALYTICS, ETC.)

600

400

MARKETING AND COMMERCE CLOUD $3.1 BILLION SOFTWARE TOOLS FOR RETAILERS AND OTHER COMPANIES THAT ENABLE DIGITAL ADVERTISING AND E-COMMERCE

ADOBE

200

MICROSOFT SAP ORACLE

0 2010

2015

PROFESSIONAL SERVICES $1.3 BILLION CONSULTING AND ADD-ON PEOPLE SERVICES

2020

SOURCES: S&P GLOBAL; COMPANY FILINGS

STRAIGHT TO THE CLOUDS Benioﬀ was among the first to see the potential for selling subscription-based software on the web and seized the opportunity. And Salesforce has been building its capabilities in the cloud with one acquisition after another. Revenue has rocketed upward, but some now want the profits to follow.

and rewarding shareholders with at least the same 26% annualized total return they have been spoiled with since the stock went public in June 2004. By the time Benioff does arrive at his house on the day of our scheduled interview—about an hour and a half late—such weighty questions have drifted from my mind. Dressed in a royal blue sports coat and dark slacks, he saunters into the room, his larger-than-life frame looming over the handful of people gathered around him. His longish hair, curling up at the base of his neck, is slicked back, and he’s smiling, energized, and voluble. He sits down at a large, circular table on his back patio, the expansive San Francisco Bay behind

SALESFORCE

him, and holds court. “This is where Burning Man started,” he tells me, referring to the annual festival of art (and mind-altering substances) that now takes place in Nevada’s Black Rock Desert. He’s pointing to the resplendent beach behind him. And just like that, I’ve forgotten how far behind schedule he is. I think the genius of Stewart Butterﬁeld is that he’s created an environment that lets anybody work on a phone or computer anywhere,” Benioff says of Slack’s founder and CEO, when our conversation ﬁnally does turn to the topic at hand. “And he’s done it in a much easier way. He’s a pioneer in this idea that this collaborative interface is what the

“YO U K N OW,

future of computing is going to be.” When Salesforce announced on Dec. 1 it had entered into an agreement to acquire Slack, many investors weren’t thrilled, says Mark Murphy, a research analyst with J.P. Morgan. “It’s a high multiple and high valuation for Slack. So it had better work because of that, or it’s going to be a big mistake.” By that day’s market close, Salesforce’s stock had tumbled more than 8%. Benioff has acquired many companies over the years—more than 30 over just the past five years—a pattern that some have criticized as an effort to grow revenue at the expense of profit margins. But he says buying Slack offers a wholly different opportunity than previous purchases: to completely rethink how customers access and interact with Salesforce tools. More than a decade ago, Benioff tried to create his own collaborative interface, called Chatter. But the glorified group chat feature never really took off. “We kind of stopped innovating [on it], mostly because it wasn’t really a revenue item for us; it was more of an internal feed inside Salesforce,” says Benioff. Chatter may have been ahead of its time, or it may have been a subpar product because it wasn’t in Salesforce’s wheelhouse. Where the company does shine is in developing software that is designed for customer-facing corporate teams— think sales, marketing, and customer service. Salesforce’s first offering was targeted to salespeople: customer relationship management software, which sales teams use for tracking customer interactions, sending personalized messages, and all sorts of other things. (“CRM,” which is Salesforce’s stock ticker, represents about a quarter of the company’s

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revenue today, though it’s now the slowest-growing category.) But Murphy, the J.P. Morgan analyst, still says that Benioff has an uncanny ability to know where the puck is heading. “Salesforce is a company that understands the future of business,” he says. “It just stays ahead of the market at all times.” Slack’s growth hasn’t been meteoric; nor has the company experienced the huge pandemic bump that some of its peers, like videoconferencing phenom Zoom, have seen. But the company’s product is sticky, especially for corporate customers with younger workforces. And in this case, the combination may well be worth more than the sum of its parts. “Salesforce is investing a lot in Slack,” Butterfield tells me in a recent interview. “I don’t mean money, I mean people. I mean like in the kind of platform integrations we’ve been trying to sell the world for a long time.” While Benioff has a flair for bombast, Butterfield has a reputation for nuance—and when we talk about the sale to Salesforce, he acknowledges that the gamble remains a big one: “Most M&A doesn’t work, so you kind of have to go into this believing that this is exceptional,” he says. Butterfield is quick to add that he believes this arrangement is exceptional. One of the reasons he’s optimistic, despite the odds being against the long-term success of the deal, is that he knows Benioff is throwing his full weight behind the plans for a deep integration of the two companies’ products. And if Benioff is on board, well, then it just might come to fruition. “He has demonstrated over and over again that when he really wants something to happen, it happens,” says Butterfield. There’s something else that unites

5,076% CUMULATIVE RETURN SINCE CLOSE OF FIRST TRADING DAY

Shareholders of Salesforce have gotten plenty spoiled since the stock began trading on June 23, 2004, earning an annualized return of 26.3%.

the two founders, different as they are: a common enemy, Microsoft. Its Teams product, which it calls a “solution for work communications,” is bundled with its broader offerings of online enterprise tools, which helps give it a major boost when it comes to customer uptake. But the pandemic helped too: Microsoft says it now has 145 million daily users of Teams, up from 32 million at the onset of COVID. In the summer of 2020, Slack filed a complaint against Microsoft with the European Commission, alleging that the larger company was unfairly bundling its rival tool with its larger suite of widely used products. (Microsoft vigorously denies the claim.) Salesforce has had its own beef with Microsoft too. Back in 2015, Microsoft tried to buy Salesforce, but talks reportedly fell apart. And the two companies have sold competing products for years, though Salesforce is well ahead when it comes to its signature product, CRM, which has more than four times the market share of Microsoft. Butterfield himself presents another potential asset to Salesforce and its ability to compete in the future. Like Benioff, he’s a visionary, though he represents a different generation: one that’s more proficient with emoji. Another asset, insiders say, has been Bret Taylor, now Salesforce’s president and chief operating officer,

who came into the company via the 2016 acquisition of his startup, Quip. Taylor, who is also a former chief technology officer at Facebook, is considered by many to be Benioff ’s heir apparent. “Marc’s shoes are impossible to ﬁll,” says Taylor. “Whoever comes after Marc will have to make their own imprint on the company.” Benioff has said that it was Taylor and Butterﬁeld who initially approached him with the idea for the Slack deal. And the two men could represent a new era at Salesforce— that is, if they stick around. Salesforce has a mixed record when it comes to holding on to the founders of companies it acquires, and, sometimes, to its executives. In 2018, Benioff promoted his then-COO, Keith Block, to become his co-CEO. But the dual CEO arrangement did not last long. Block left the company in February 2020, after less than two years in the position. And Benioff resumed the role of sole CEO. (At the time of Block’s departure, Benioff expressed his gratitude for the exec’s service, saying, “Keith’s strategic thinking and operational excellence have deeply strengthened our company, and our close friendship endures.”) “When he left, initially a lot of us on Wall Street thought that could be a big problem,” says Rana, the Bloomberg Intelligence analyst. But investors soon saw that it didn’t impact the company’s ability to keep

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BENIOFF’S BIGGEST BETS The Salesforce CEO has made 30plus acquisitions in just five years. Here are his priciest purchases to date.

SLACK

TABLEAU

MULESOFT

DEMANDWARE

PRICE: $27.7 billion December 2020 (deal announced) Benioﬀ says Slack will become the “central hub” for all of Salesforce’s applications. The deal, Benioﬀ’s biggest acquisition yet, is expected to close this summer.

PRICE: $15.7 billion June 2019 The popular analytics platform was snapped up by Salesforce just two years ago. But its CEO, Adam Selipsky, is now heading back to his former employer, Amazon.

PRICE: $6.5 billion March 2018 MuleSoft helps customers integrate data from a variety of applications. That includes Salesforcemade software and tools made by other vendors.

PRICE: $2.8 billion June 2016 This acquisition filled a gap in Salesforce’s suite of products, jump-starting its “commerce cloud,” which oﬀers customers e-commerce tools, in addition to its other enterprise apps.

up with its rapid growth—as long as Benioff was still running the show. “And trust me,” says J.P. Morgan’s Murphy, “he runs the company.” That last part is the clincher: Salesforce, to many investors, is Benioff. As Murphy says, “Marc can’t live separately from Salesforce. This is his identity.” The question for shareholders, customers, and his largely enthralled mass of employees is, What if that wasn’t the case? B E N I O F F WAS N’ T always the boss, though he clearly aspired to be from early on. He cut his teeth at Oracle, the database and applications provider, under the wings of its notoriously brash founder and former CEO, Larry Ellison. “I was the youngest vice president of a company when I was like 26, and I didn’t have any leadership training,” says Benioff. He wasn’t just inexperienced, he also had a problem focusing his attention, as he tells it. There were a million things he wanted to do, and spending the rest of his career working for another alpha male wasn’t one of them. Besides, he saw huge opportunity in an emerging business model: selling enterprise software over the web. The consumer Internet had already taken off, but companies weren’t yet conducting their business operations online. So, in 1999, Benioff left Oracle and started Sales-

force. The idea? Instead of clunky, pricey software that companies bought for millions of dollars and then had to spend even more customizing it for their needs, Salesforce would develop tools that could be accessed online, and bought as a subscription. Customers wouldn’t have to invest in infrastructure to host the computing power these applications required; Salesforce would take care of all of that for them, in the cloud. Selling subscription-based software over the web doesn’t sound all that revolutionary today. But in 2004, when Benioff took Salesforce public, nobody on Wall Street really understood what he was doing. “Here you have this company coming public with this larger-than-life guy bragging about how software-asa-service was the next big thing,” says Peter Goldmacher, a former analyst who now serves as head of investor relations for another, younger, cloud-based software company, New Relic. “It was pretty close to the early 2000s [when the dotcom bubble burst], and nobody was in the mood.” Goldmacher was the ﬁrst sell-side analyst to start covering Salesforce. “I knew everyone at the company because it was the Oracle all-star team,” he says. “I didn’t have any insights into the cloud or SaaS, but these guys can sell ice to Eskimos, and that’s all I needed to know.” Goldmacher was right. Benioff had

brought a handful of the best salespeople from his previous employer along for the ride. Together, they not only pioneered a new product category, they also changed the way software is sold and valued by Wall Street. It was a bumpy start, just getting investors to understand this new business model. But if anyone could convert the naysayers, it was Benioff. “That’s where his persona, and quite frankly his physical persona, came in,” says Dominic Paschel, another longtime software insider who worked on Salesforce’s investor relations team from 2004 to 2008. Paschel remembers how Benioff captivated investors when he was on the road, even if he didn’t—or maybe because he didn’t—stay on the talking points his team had prepared for him. Nearly every chance to talk with investors, analysts, the media, or his own sales team became another opportunity for showmanship. “He just kept living larger and larger,” says Goldmacher, who recalls seeing musician Neil Young onstage at a Salesforce analyst day in the company’s early days. “What the fuck does Neil Young know about software?” wondered Goldmacher at the time. “But he was Benioff ’s friend, so why not?” Those who know Benioff well, though, say that the sizzle and spectacle are there to serve more important ends. “Marc is a rare combination of showmanship and substance,” says

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Peter Goldmacher Head of investor relations, New Relic

Julie Sweet, CEO of Accenture, who has partnered with Benioff on several projects over the years. “Those two often don’t come together. But Marc has a lot of credibility because he actually does what he’s passionate about.” That’s particularly true when it comes to his commitment to social and environmental causes. “He wrote the book on stakeholder capitalism,” says Klaus Schwab, the founder and executive chairman of the World Economic Forum, referring, quite literally, to not one but several books Benioff has written on the subject. Michael Dell, CEO of the $94 billion-in-revenue Dell Technologies (No. 28 on the Fortune 500) has known Benioff for decades and calls him his “brother from another mother.” Dell can remember the Salesforce founder championing progressive causes early on, going back to his days as a young executive at Oracle. “He deeply believes that business is the greatest force for change in the world,” says Dell. “And his actions back it up.” All of this—the showmanship, the championing of stakeholder capitalism, and yes, selling good, old-fashioned enterprise software to companies great and small—fold together in a single annual event: Salesforce’s Dreamforce conference, the enormous star-sprinkled celebration/trade show/retreat that Salesforce throws every year, and which shuts down San Francisco for days. Dreamforce is where the software company CEO meets Benioff the tireless impresario and Benioff the true believer. Onstage, in front of legions of company faithful—the sales reps, programmers, and others whom Benioff calls “Trailblazers”— the salesman-in-chief doesn’t hawk his company’s enterprise software; rather, he sells inspiration, a sense

“What the f--k does Neil Young know about software?” marvels one tech industry veteran after seeing the musician at a Salesforce event for Wall Street analysts. “But he was Benioﬀ’s friend, so why not?”

of belonging, celebration, mission. At Dreamforce 2018, he motivated his ﬂock to take “personal action to change the world.” At Dreamforce 2019, he said excitedly that it wasn’t strings of computer programming they were offering customers, but rather an “intelligence revolution.” At Dreamforce 2020, delivering his remarks outside (and minus the adoring crowd) owing to the pandemic, he reminded his team that business was “the greatest platform for change.” Even those who don’t love the showman’s shtick agree that Benioff has a track record of putting his money and his actions where his mouth is. When he launched Salesforce in 1999, he created the Salesforce Foundation, a philanthropic arm of the company, and developed what he calls a “1-1-1” model: The company committed to put 1% of its equity into its foundation when it was founded, and each year allocates 1% of its employees’ time to volunteer work, and donates 1% of its product to nonproﬁts. Benioff ’s muse for this benevolent approach to business was an unlikely one: former Secretary of State and four-star general Colin Powell, who has sat on Salesforce’s board since 2014.

In 1997, when Benioff was still at Oracle, he heard Powell give a speech in which he urged business leaders to use their privilege, platform, and resources to do good in the world. Benioff and Powell were eventually introduced, and the former cabinet official smartly enlisted Benioff ’s help to procure computers for a struggling high school in D.C. “Lo and behold, you don’t have to ask Marc that twice,” says Powell, who recalls Benioff showing up on the site shortly afterward with a truckload of laptops. Of course, in the philanthropic ethos of Benioff, there is no virtue in keeping such good deeds to oneself. “I don’t know how many times he’s told that story [about the laptops],” says Powell, laughing genially. “Marc has never stopped talking about it.” But the repetition helps reinforce the world-changing lore. For Benioff, as with any great salesman after all, it only counts if you sell it. S I XT Y- O N E STO R I E S H I G H , Salesforce Tower is the tallest building in San Francisco, hanging over the city’s skyline almost comically. On this day in mid-March, I’m on the top story, the “Ohana” ﬂoor—a name that

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SALESFORCE

Francisco that aims to raise corporate tax dollars to provide housing and services for the homeless. But all that wokeness wasn’t enough last spring, when George Floyd was murdered at the hands of a white police officer in Minneapolis. The social unrest that ensued focused on police brutality, but also on corporations’ role in the struggle for racial, ethnic, and gender equality. Suddenly, even the Bay Area’s most liberal leaders felt pressure from many employees to do more—to not just work “toward” better representation and inclusivity in their workforces, but rather to show that they were achieving both. Over the past few months, two of Salesforce’s Black, female executives left the company and suggested that Salesforce, despite its high-minded talk, was no better than the rest. Each executive publicly shared their resignation letters, which included several complaints about Salesforce’s culture. The ﬁrst complaint came from Cynthia Perry, a former senior manager of design research, who, in an open letter on LinkedIn, said she had been

LOOKING INWARD AND GROWING Salesforce is confronting its own “blind spots” when it comes to race, says its foundation CEO Ebony Beckwith (left), just as it tries to digest its biggest acquisition yet: Slack, led by CEO Stewart Butterfield.

“gaslit, manipulated, bullied, neglected, and mostly unsupported” by a person whose name she redacted from her public post. “It’s not a place of opportunity,” wrote Perry. “It’s not a place of Equality for All.” Vivianne Castillo, a former manager of design research and innovation at the company, in a letter she published several weeks later, echoed some of the same allegations Perry had made. Castillo also added speciﬁc examples of how she’d been made to feel like she had to take on additional, unpaid work in order to help Salesforce with its diversity initiatives—something that wasn’t part of her job description. And she called out Benioff ’s culture—even his “appropriation” of Hawaiian words—as empty promises, devoid of real action. Benioff says he was caught com-

F R O M L E F T: C O U R T E S Y O F S A L E S F O R C E ; C O U R T E S Y O F S L A C K

translates to “family” in Hawaiian and that seems to mean a full menu of wholesome virtues in Benioff-speak. Ohana is a kind of spiritual destiny for all things Salesforce, and Benioff, who has a home in Hawaii, weaves the term (and other Hawaiian words) into everyday conversation and even into his letters to shareholders. Today, Benioff is leading one of Salesforce’s weekly all-hands, which the company started doing when the pandemic hit a year earlier. The Salesforce Tower is still technically closed, but Benioff and his chief business officer, Ryan Aytay, are on hand to direct their massive Zoom call, livestreamed to thousands of employees, from the plushiest and most scenic of Salesforce’s new digs, which ﬁnally reopened to vaccinated employees in mid-May. I’ve been allowed to observe the all-hands. But I haven’t been given a heads-up on what it’s going to be about. Unsurprisingly, the topic at hand doesn’t have much to do with enterprise software. And, just as on-brand, Benioff has a surprise celebrity guest. San Francisco Mayor London Breed appears—in person. Breed, who is the ﬁrst Black female mayor in the city’s history (and to whose campaign Benioff donated generously), is there to help the CEO talk to his employee base about a difficult topic: allegations, made by a couple of recently departed Salesforce employees, that the company’s culture is toxic for Black women. Benioff has prided himself on being both a socially conscious CEO and an activist one. He canceled company events in Indiana after it passed what many consider to be a law that discriminates against transgender people. He has personally and aggressively lobbied for a bill in San

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pletely off guard, and quickly set up an all-hands call to discuss the criticisms. In the conversation with Mayor Breed, Benioff shared his concerns that he, like so many other leaders, had blind spots when it came to race and gender. “Give us some coaching,” Benioff asked. “What are some things that we could do to improve the Black, female experience?” Breed provided a few tried-andtrue suggestions, such as workshops and bias training—and then offered something more profound: “I think part of what’s important for us to do as people is to just think about what we’re saying before we say it.” Ebony Beckwith, CEO of Salesforce’s foundation and the company’s chief philanthropy officer, was another “guest” speaker on that day’s all-hands, though she appeared over Zoom. (She, too, is a Black woman.) “Marc was asking me, ‘Why is this all coming up right now?’ ” Beckwith told me in an interview that took place after the company meeting. “It’s because we’re at a point in life that it’s okay to be talking about this in corporate America. What used to

be a taboo subject is everywhere now. And it highlighted some things we needed to work on internally as well.” According to Beckwith, Salesforce has taken several actions since the allegations by Perry and Castillo surfaced, including training for employees to better understand what microaggressions look and feel like. “No one was talking about this stuff [pre-George Floyd],” says Beckwith. “I don’t know if I would have felt safe, as a Black woman, talking about this either.” As for Benioff, he tells me he sees the experience as an opportunity. It’s another chance for him to work on the company culture and make it a model for others. Since the allegations from Perry and Castillo surfaced, in fact, the CEO has asked his team to update their strategy and plans for equality at Salesforce. “We’re not perfect,” says Benioff. “But we’re willing to look at ourselves.” That introspection has only grown in intensity in recent years. Benioff, now 56, is deeply pondering the next phase of his life. “I look at life in four quadrants, and I’m kind of moving

into quadrant four,” he tells me during our conversation on his patio in early spring. Some have speculated that Benioff would run for some sort of political office someday, in his post-Salesforce future. But the CEO says he has zero intention to do so. “I’m much more of a creative person,” he says. “I don’t have a political personality. Like, in my meditations or in my conversations, it has never ever come up.” The challenge that calls most strongly to him now is climate change. “The No. 1 issue in the ocean is acidification,” he says, pointing to the bay behind him. Then he rattles off statistics—how many gigatons of carbons we’ve emitted since the first Industrial Revolution, how we’ve deforested 3 trillion trees, and other depressing facts. This is the scale of challenge Benioff wants to focus on in his so-called fourth quadrant. He also wants to be a guide to other business leaders. He mentors younger entrepreneurs and says CEOs regularly call him up for advice. And for all of his do-good projects, you can bet he’s bringing in some star power. “Sometimes Marc will text me and on that thread is Matthew McConaughey and Chris Rock,” says musician Will.i.am. “There’s one thread with me and LL Cool J and Willie Nelson and Willie Nelson’s son. It’s a beautiful mix of different worlds, and Marc sees the beauty of having these worlds connected.” For a CEO who lives his life onstage, it seems fitting. “I never thought in a million years that this is where we would be,” Benioff tells me, referring to the massive growth of his company. It’s a good sound bite—the man knows how to think in headlines—but somehow, I doubt it’s true.

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291

Tractor Supply

Revenues $10.6 billion

Profits $749 million

500 Rank

Employees 32,000

Total Return to Shareholders (2010–2020 annual rate) 20.5%

CHICKEN COUP America’s pandemic-driven love aﬀair with country living—and an unprecedented boom in demand for chicks, goats, and other hobby livestock—made Tractor Supply one of the hottest retailers of the past year. Can it keep its place in the pecking order?

By Phil Wahba HAL LAWTON IS PUSHING POULTRY,

BEAST MODE CEO Hal Lawton at a store in Ashland City, Tenn. Lawton took the reins in January 2020—then found himself racing to keep up with a surge in demand for pet supplies and animal feed. PHOTOGRAPHS BY EMILY DORIO

literally and ﬁguratively. The boyish Tennessean leans over a stock tank that holds dozens of chicks; he gently nudges some of them out of his way so he can check the air coming out of the heater in the tank. The tiny birds are the star attraction of Tractor Supply Co.’s big annual “Chick Days” promotional event. And on a prematurely sultry April day at a brand-new store in Wappingers Falls, N.Y., Lawton, the retailer’s CEO, is making sure the

babies are comfortable as they chirp and wait to be taken home. For any customer, the chicks could be the start of a buying spree. On shelves nearby are starter kits that help beginner poulterers care for their birds. Each kit includes essentials like heat lamps and a chick feeder. Lawton explains another accessory to a novice observer: “This is to hold your eggs after they come out.” The chain recently started selling $1,300 brooder towers that keep chicks safe and warm. And just a

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T R A C TO R S U P P LY

couple of feet behind Lawton stands a six-foot-tall iron rooster—a whimsical decorative bargain at $160. Tractor Supply, a 2,100-store retailer based near Nashville, is riding a backyard poultry craze. Last year it sold 11 million birds, including chickens, ducks, and turkeys—half of them to ﬁrst-time customers who plan to raise them primarily for their eggs. “Everybody’s doing it,” says Lawton, so Tractor Supply is doubling down. “We want to dominate poultry,” the CEO says. Birds are a small part of its business (chicks cost just a few dollars each), but those ﬂedglings illustrate many of the things Tractor Supply does right. The chicks generate future spending on food and accessories. They’re intended to complement a rural lifestyle, rather than to wind up, say, covered in blue cheese at a Buffalo Wild Wings. And they’re the kind of hard-to-ship, hard-to-store item that giants like Walmart, Home Depot, or Amazon don’t deal with. Fueled by such insights, Tractor Supply has generated a remarkable run of success, including at least 26 straight years of sales growth, out of a quirky but growing market niche. Founded in the 1930s to serve working farms, it has thrived by catering to hobbyist farmers—including suburbanites with larger properties who love gardening and dabble in livestock. Its midsize, carefully curated stores offer an eclectic mix of work clothes, tools, pet food, and feed for farm animals (especially chickens, goats, and horses). And those stores are concentrated in the exurbs—not deeply rural country, but at the edge of metropolitan areas, where backyards can be tallied in several acres. “They really understand their customer. They know where their

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Kathy Gersch Chief commercial officer at Kotter, a consulting firm

“They know the subject matter, and customers are going to trust an authentic source.” Or as a Tractor Supply exec puts it, “Sometimes you need to talk to a live person.”

customer lives and the lifestyle they lead,” says Joe Feldman, an analyst at research and trading ﬁrm Telsey Advisory Group. In 2020, Tractor Supply attracted a new wave of customers as the pandemic conﬁned nearly everyone at home and persuaded more urbanites to try smaller-town living. Americans adopted pets by the millions, shifted spending to their homes—including their second homes—and sought solace in the outdoors. And Tractor Supply became one of the fastestrising companies in the Fortune 500, jumping 89 spots to No. 291 on this year’s list on the strength of revenue that surged 27% in 2020, to $10.6 billion. (That momentum

continued into 2021: Tractor Supply’s sales rose 43% year over year in the ﬁrst quarter, with some help from stimulus checks.) Such gangbusters growth is unlikely to continue, with the pandemic easing. But the rush to the country that underpins it is less an anomaly than a speeding up of a long-term trend, as more people—notably millennials yearning to become homeowners—look to adopt quasi-rural lifestyles. Being priced out of urban living is one driving factor; interest in healthier and more sustainable diets, including homegrown vegetables and home-harvested eggs, is another. Whatever is motivating them, Tractor Supply sees an opportunity in these “ruralpolitans”—and the COVID-driven shift toward remote work will help sustain their numbers. Lawton, who became CEO in early 2020 after two years as the No. 2 at Macy’s, says millennials’ willingness to move farther from city centers is a “game changer”: “We’re seeing a new kind of shopper in our stores,” he tells Fortune. Now Tractor Supply is adapting to cater to both its established customer base and these younger space-seekers, following a strategic road map with the folksy title “Life Out Here.” Staying at the top of the pecking order won’t be simple: To keep growing, the company will need to play catch-up on e-commerce and compete with much bigger retailers in areas like garden supplies and sporting goods. But Lawton and his team will be working from a successful, hard-toimitate playbook—one that has them, for now, on a winning streak. MOST TRACTOR SUPPLY STORES

don’t sell tractors, and its founder never worked a day of his life on a

farm. The company began in 1938 as a mail-order catalog, selling tractor parts. Charles Schmidt, a 26-year-old Chicago brokerage-house employee, established the company to serve frugal farmers struggling after the Depression, and it initially thrived as the “Sears of farm supplies.” The year after its founding, Tractor Supply opened its ﬁrst store, in Minot, N.D. Professional farmers originally made up 90% of Tractor Supply’s clientele; today that ﬁgure is 10%. Far fewer Americans farm today, as agriculture has consolidated and industrialized. But by the 1990s, the demographics of rural America had taken an interesting turn. During that decade, the number of rural

FODDER FOR A LIFESTYLE The selection at a Tractor Supply store spans a range from homesteader practicality (vegetable seeds, power tools, lawn mowers) to fashion (like workwear brand Carhartt) to pure whimsy (that’s a six-foot rooster at the upper left). Generally, though, animals rule: Pet and livestock supplies and feed account for almost half of company sales.

route addresses grew 25%, as more people bought primary and weekend homes in the country rather than, say, at the beach. Since 2011, according to U.S. Department of Agriculture data, the population in rural areas at the edge of larger “metros” has slowly but steadily grown. And

some of those back-to-the-landers are trying their hand at small-scale farming—raising eggs or goats or heirloom tomatoes for fun and, occasionally, for extra income. Through the 20th century, Tractor Supply had maintained a steady but modest-size business, gradually selling more to rural homeowners and less to full-time farmers. It took 60 years for the retailer to reach the $500 million annual-sales milestone. But it took only 16 years to jump from there to the Fortune 500 (it debuted in 2014, with $5.7 billion in revenue), as the company hitched its wagon to the hobbyists. Today, the core Tractor Supply customer typically has one to ﬁve acres

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of land, some small livestock like chickens, hogs, or sheep (in Texas, there could be a couple head of cattle), and perhaps a horse or two. “They’re not big industrial farmers—they live out here because it’s their passion,” says Tractor Supply’s senior vice president of marketing, Christi Korzekwa. The fast-growing new cohort that Tractor Supply is cultivating, she says, are “beginning to learn how to garden. They have this passion for poultry.” Call them the “country suburban” customers. The company is strategic about where it meets these customers. Its stores are almost all located in midsize or small towns—communities that are often too small to support a Home Depot, Petco, or Walmart. (A Telsey study a few years ago found that the typical Tractor Supply was a 30-minute drive from any of its major rivals.) Wappingers Falls, a hamlet of 5,500 souls 75 miles north of New York City, is a textbook Tractor town: It sits in the heart of Dutchess County, where many New Yorkers have weekend homes (some of which became primary abodes during the pandemic), but outside New York’s densely populated ring of commuter suburbs. The Tractor Supply there sits across Route 9 from a MercedesBenz dealership; the nearest Lowe’s is a few towns away. Tractor Supply stores are almost identical in size, at 15,500 square feet—the average Home Depot or Lowe’s is six times as big. Tractor Supply’s strength lies in getting the product assortment just right given the small footprint. The layout is consistent from store to store: Immediately to the right upon entry are work apparel like gloves, Carhartt jackets and beanies (equally appropriate for the barn or the brewpub),

“OUT HERE” IN PERSON A customer checks out at the Ashland City store. Even in pandemic-racked 2020, e-commerce accounted for only about 6% of Tractor Supply’s sales.

Wrangler jeans, and cowboy boots— for the hobbyist rancher who’s perhaps more into the look than the work. Just past the clothes are the pet-supply area and animal victuals, in aisles dominated by enormous bags of horse, goat, chicken, and even alpaca feed. And close to that is the chicken section (lots of coops and heat lamps, but birds, beware: Tractor Supply also sells plucking and butchering equipment). The store can be conﬁgured to give space to products according to local demand. In this section, Tractor Supply is careful to make sure its offerings don’t overlap much with

rivals. For a portable propane tank for a gas barbecue grill, for example, you could shop at dozens of retailers; for a 100-pound propane tank for a welding project, Tractor Supply is the more likely go-to. Much like specialty pet retailers, Tractor Supply is getting a tailwind from the pandemic surge in pet adoption. Overall, animal feed and agricultural products like fencing and fertilizer generate about half its net sales. Those staples are central to getting people into stores, where they might round out a shopping trip with a puppy chew toy or a baseball cap from the Kevin Costner TV ranch drama Yellowstone. “We want to get people in with their essentials, and then we can get the rest of the basket,” says chief merchant Seth Estep. That approach helps explain why Tractor Supply has managed to increase sales during each of the last

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A PANDEMIC YEAR TO CROW ABOUT

RANK 291

Tractor Supply’s revenue grew a stunning 27% in 2020, as the COVID-19 crisis prompted both a back-to-the-land movement and a surge in pet and animal ownership. TRACTOR SUPPLY REVENUE

REVENUE BY CATEGORY, 2020

$10 BILLION

47% LIVESTOCK AND PET MERCHANDISE (INCLUDES FOOD)

$10.6 BILLION 8

21% SEASONAL, GIFTS, AND TOYS (INCL. HEATING AND GENERATOR EQUIPMENT, GARDEN, POOLS, ETC.)

0 2011

2020

4% AGRICULTURE

7% CLOTHING, FOOTWEAR

21% HARDWARE, TOOLS, AND TRUCK COMPONENTS

SOURCE: BLOOMBERG; COMPANY FILINGS

three downturns, including the pandemic mini-crash: People feed their pets, and their livestock, through thick or thin. IN 2008, DURING THE GREAT RECES-

sion, when Hal Lawton was an executive at Home Depot, he went on a reconnaissance mission with a colleague (Craig Menear, now Home Depot’s CEO) to understand why a smaller competitor was weathering the brutal climate so well. That competitor was Tractor Supply—and as the interlopers walked the ﬂoor of one of its stores, Lawton marveled at the company’s ability to choose just the right merchandise, and to be so precise in knowing how much to stock. The experience, Lawton recalls, instilled him with “admiration for not only the business model and the sustained performance, but also the culture.”

Lawton, now 46, has roots in Tractor Supply territory: He was raised in Kingsport, a town of about 54,000 some 100 miles northeast of Knoxville. He didn’t grow up with livestock, but many friends did, even though few lived on working farms. “Everybody up there had trucks and ATVs and animals,” recalls Lawton. His own retail career has been more online than off-road. In the 2000s, Lawton played a key role in turning Home Depot into an e-commerce behemoth. By the time he left in 2015, the chain’s e-commerce had grown from almost nothing into a multibillion-dollar business; it now accounts for about 16% of sales. Lawton reﬁned his e-commerce chops at eBay, where he spent the next two years, and then as president at Macy’s, an e-commerce leader among department stores. When Tractor Supply’s board came

calling in mid-2019, Lawton was all ears: Macy’s was struggling, and Tractor Supply is based in his home state. But the farm-supply dealer also needed to build its e-commerce muscle, which made the fit even better for what would be Lawton’s first CEO job. The COVID-19 outbreak struck just 10 weeks after Lawton took the reins. Tractor Supply, like many big-box chains, was deemed an essential retailer and thus could keep stores open. But that didn’t change the fact that shoppers didn’t want to crowd into stores and linger. Before the pandemic, the company had been working on curbside pickup for online orders: Under pressure, Lawton pushed the company to get the service up and running in just a few weeks. A year later, some 75% of online orders at Tractor Supply are picked up at the store. The pandemic highlighted the prescience of the board in choosing a CEO with e-commerce knowhow, but it also underscored one of Tractor Supply’s vulnerabilities. E-commerce as a share of net sales doubled in 2020—but only to 6%, far below many rivals. Because so many items Tractor Supply sells— think 80-pound bags of horse feed, or a riding lawn mower—are too big to be shipped without vaporizing profits, a lot of its business is “Amazon-proof.” But that also means the company can’t offer as much of the door-to-door convenience that its newer, urban-minded customers are accustomed to. To keep e-commerce growing despite that handicap, Lawton is focusing on tech innovations that can keep customers engaged. Over the course of the pandemic, the company has revamped its website, with

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detailed product information and relevant search results that outdo what many competitors offer. “It’s not even comparable,” says Kathy Gersch, chief commercial officer at consulting firm Kotter, of the improved site. “They know the subject matter, and customers are going to trust an authentic source of information.” A typical Tractor Supply store carries up to 20,000 different items, but the company sells about 150,000 online: The hope is that its website improvements will draw customers to products that don’t normally sell well enough to command space in stores. Tractor Supply’s recently relaunched loyalty program now has 20 million members, a figure comparable to much larger retailers like Kohl’s. Part of sustaining that loyalty involves making its app smarter. If you buy a chick, the retailer’s new app can periodically suggest products to buy over the life of the bird. Tractor Supply’s website and app also offer tutorials on topics that require specialized expertise (think fence installation), and will soon connect customers one-on-one to on-staff professionals. “Sometimes you can only get so much out of YouTube, and you need to talk to a live person,” says technology, digital commerce, and strategy chief Rob Mills. Lawton wants to make sure that more of those experts look like the country at large. Only 17% of Tractor Supply’s employees are members of minority groups, a potential Achilles’ heel at a time of deep demographic change in the U.S. Last summer the company hired its first diversity and inclusion director. “Our goal is for our stores and our team members to mirror the communities that we serve,” says Lawton.

11 million CHICKENS, DUCKS, TURKEYS, AND OTHER FOWL

The company’s sales of live birds hit a record high in 2020, with about half going to first-time customers. Most birds become egg layers or pets; relatively few become dinner.

TRACTOR SUPPLY CURRENTLY COM-

mands 16% of the fragmented “farm and ranch supplies” market, and Wall Street sees room to grow there. But to retain and build on its inﬂux of newer ruralpolitan customers, the company aims to broaden the range of what it sells, even if it means competing with some of the big-box retailers with whom it hasn’t previously overlapped much. Making better use of physical stores is key to that effort. At many stores, Tractor Supply is overhauling its “side lots”—5,000-square-foot adjacent areas that have largely been relegated to serve as storage or sales space for unexciting products like fencing. Lawton wants to use these lots to showcase items like patio furniture and gardening supplies, to boost the company’s appeal among less “farmy” suburb dwellers and women. (Women represent nearly half of Tractor Supply’s customers, up from 40% just a few years ago.) “Lawn-and-garden is the No. 1 category our customers play in but that we aren’t currently a destination for,” says Lawton. There are parts of the West and Midwest where Tractor Supply is largely absent, and Lawton sees room to add some 500 stores nationally over time. In perhaps the biggest bet of his tenure so far, Tractor Supply has agreed to buy Orscheln Farm & Home, a 167-store rival that’s big

in Missouri, Kansas, and Iowa. If the Federal Trade Commission signs off, the $297 million acquisition will be Tractor Supply’s biggest ever. Orscheln is also a player in sporting goods, a category that Tractor Supply has long had its eye on, and the deal could help the company learn how to compete with the likes of Dick’s Sporting Goods or REI. “It will be a good thing for them to have a sandbox to experiment in,” says Kotter’s Gersch. All the while, Tractor Supply continues to gussy up its stores—seeking that just-right balance between suburban impulse-buy appeal and rural practicality. It plans to add 125 shopin-shops for Carhartt, for which it is the biggest retail partner, the better to attract both hipster newcomers and the laborers who actually work in the cool work wear. Other touches include $10 self-service dog washes, something that customers have been known to use for pets like goats and miniature ponies too. The goal: Keep giving shoppers a reason to visit stores, even as their working and shopping lives move increasingly online. “What does a customer do after they wash their dog?” asks stores chief John Ordus. “They buy something new for the dog.” And maybe a semi-ironic baseball cap while they’re at it—or, if they’re feeling extravagant, a six-foot iron rooster.

CONTENT FROM PGA TOUR

FIRST TEE USES FUN GOLF-BASED GAMES AND DRILLS TO HELP KIDS DEVELOP INNER STRENGTH, RESILIENCE, AND CONFIDENCE.

Like a PGA TOUR pro, the golf industry is making the most of having the wind at its back.

Approach Shot AS A GAME THAT PRIDES ITSELF ON HONOR, GOLF would probably have preferred to experience a massive upswing strictly due to its many merits, unaided by a global pandemic that supercharged outdoor, socially distanced activities like a brisk 18 holes. Still, in golf as in life, you play the ball as it lies. And it’s a good lie: According to the National Golf Foundation, in 2020 a record 3 million people in the U.S. played golf on a course for the first time, double the number of beginners from a decade ago. And demand is soaring—rounds were up 14% year over year in 2020 despite two months of course shutdowns. So, too, is latent demand, with 17 million people who didn’t play golf on a course last year stating that they are “very interested” in doing so now. On the game’s preeminent pro circuit, the PGA TOUR, total cross-channel engagements and average TV viewership are up 56% and 39%, respectively, season over season. This momentum has defined two critical opportunities for the TOUR: how to build on the sport’s popularity, and how to bring greater diversity to the sport overall. And it’s making strides toward both.

Expanding Inclusivity Rising to the challenge is a dedicated diversity, equity, and inclusion (DEI) industry collaboration team that includes representatives from the PGA TOUR, PGA of America, LPGA, USGA, equipment manufacturers, and a cross-section of other stakeholders—from grassroots programs to minority-owned businesses. Beginning last summer, six distinct groups began working in earnest, covering education and skill development; talent acquisition; human resources; procurement; youth and adult player development; and marketing and communications. For the team’s marketing and communications group, the goal is to change the perceptions that have historically dampened interest in the game: Golf is intimidating. It’s not diverse enough. It costs too much. The course isn’t especially friendly. Access is limited. The game seems boring. Instead of being met with defensiveness, excuses, and whataboutism, this work group began addressing these issues head on. They identified a need to move away from depicting golf as pristine and elite: Out with the

THE NEW “MAKE GOLF YOUR THING” CAMPAIGN IS FOCUSED ON CONTINUING TO MAKE THE GAME MORE INCLUSIVE AND DIVERSE.

perfectly manicured country club look, and in with authentic, unstuffy, and often nontraditional golf places and people. “Golf can and should be a game for everyone,” says Neera Shetty, executive vice president and deputy general counsel for the PGA TOUR and chair of the PGA TOUR’s Inclusion Leadership Council. “Across the industry, there is incredible commitment to ensure golf is understood to be more diverse, inclusive, and equitable. This movement is aimed at inviting more people from diverse backgrounds to the game in whatever format they’d like to experience it.” As such, “authenticity” became the watchword, with an invitation to engage with golf that was all about inclusivity, not exclusivity. In fact, the very definition of “golf” was democratized by the TOUR to include such things as nine-hole rounds, miniature golf, video games, driving ranges, fandom, and even backyard chipping. This broadened scope laid the groundwork for the work group’s new, proudly casual call to action: “Make Golf Your Thing.” From television commercials to web and print advertising, the “Make Golf Your Thing” campaign launched on May 10, National Golf Day. Each iteration offered an invitation to try golf in whatever form suits one’s lifestyle. One campaign, manifested via owned media assets such as public service announcements, websites, and social media accounts, focused on golfers as ambassadors by encouraging people to invite friends to play golf; another was aimed at creating awareness in nongolfers through paid media driving people to the campaign’s centralized website, among other destinations.

MILLION THE RECORD NUMBER OF PEOPLE IN THE U.S. WHO PLAYED GOLF ON A COURSE FOR THE FIRST TIME IN 2020. THAT IS DOUBLE THE NUMBER OF BEGINNERS FROM A DECADE AGO.

Attracting and Mentoring Youth As golf undergoes a renaissance, it’s no coincidence that the game’s highest-profile youth development program, First Tee, established more than two decades ago, is experiencing its own refresh. Its founders—the PGA TOUR, PGA of America, USGA, LPGA, and The Masters Tournament—are underlining the program’s main focus of building strength of character and life skills to tackle any challenge a child may face. The pandemic has certainly reinforced the stark reality that those challenges go far beyond escaping a greenside bunker or avoiding a water hazard— though First Tee helps kids on that front too. “There’s little doubt the world has changed significantly over the last 23 years,” says Greg McLaughlin, CEO of First Tee. “Today’s kids and teens are facing different pressures than previous generations, and it’s important that we look in the mirror to ensure we’re approaching our work with as much relevance and awareness of today’s families as possible.” Given the program’s considerable success over the years—it reaches 3.7 million young people annually—a major overhaul wasn’t necessary. The brand evolution focused more on changing style than substance, including a refreshed brand purpose and narrative as well as a new logo, which itself is a metaphor for the growth guidance at First Tee’s heart. The organization hopes this new visual identity—energetic, approachable, modern—will help attract new participants for years to come. And with 150 U.S. chapters and six international locations, First Tee’s programs are easy to find. Nowadays, that holds true for golf itself as well, no matter who you are or how you engage with the game. —EVAN ROTHMAN

SUBDIVIDE AND Homebuilder Lennar is scaling new heights as America’s appetite for brand-new homes

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TOWN AND COUNTRY Lennar townhomes under construction in San Diego in the fall of 2020.

Lennar

Revenues $22.5 billion

Profits $2.5 billion

Employees 9,495

BING GUAN—BLO OMBERG/GE T T Y IMAGES

Total Return to Shareholders (2010–2020 annual rate) 15.8%

CONQUER builds and builds and builds. By Shawn Tully

129

500 Rank

entire career building an enterprise cofounded by his father and rarely gives interviews. For him, as for tens of millions of Americans, the home of the future isn’t ﬁlled with futuristic gadgets, it’s a principal workplace, a gym, a homeschooling center, an entertainment hub, and refuge where everything from pandemic-ready leisure wardrobes to gourmet cuisine can be delivered to their doorstep while they spend quality time bonding instead of ﬁghting traffic and roaming stores. “The pandemic’s rewired the way people think about their homes,” says Miller. “As a result, they’re rethinking the amount of their paycheck to spend on housing. We have a front-row seat seeing in real time the enthusiasm for the home growing.” The sudden rage to own is boosting the fortunes of America’s $400 billion single-family homebuilding industry more than at any time since the real estate boom that ended in the Great Recession. Put simply, it’s the pandemic lifestyle that has put the juice back into what has long been a

slow-moving sector. The incredible, overnight resurgence stunned even such seasoned veterans as Miller. He recalls that for a few months in the depths of the lockdown, he and co-CEOs Jon Jaffe and Rick Beckwitt didn’t know what to make of the pandemic’s impact. Initially, Miller says, they couldn’t foresee “whether people would have enough money for a down payment.” He notes that states such as California, Washington, and New York mostly banned construction, and that even in the markets that remained open, Lennar slowed to a crawl, fearing the ﬂashing yellow light might turn red. Instead, the strong tailwinds from 2019 into early 2020 returned, and an entirely new force entered the market: the rise of the work-fromanywhere economy. That trend added a whole new layer of demand to the robust, pre-pandemic march already underway. The capsule summary is that Lennar’s and other homebuilders’ proﬁts are booming: Although lumber, labor, and other costs are rising fast, sales prices and

BING GUAN—BLO OMBERG/GE T T Y IMAGES

ST UA RT M I L L E R , T H E E X EC U T I V E

chairman of Lennar, was trying to invent the “Home of the Future.” It was the early 1990s, and as a young exec, he and his team spent months developing a futuristic mini-manse, filled with voice activation and other gadgets. The brainchild was splashily promoted in TV ads by Star Trek’s William Shatner, who intoned, “If you’re not living in Lennar’s Home of the Future, you’re living in the past.” The venture was a total flop. But now, nearly three decades later, America’s largest homebuilder— No. 129 on the Fortune 500 list, up 18 spots from last year—has its finger on the pulse of exactly what Americans want from the home of the future. “I went to the Lennar offices every day in a suit and tie, even in the sweltering Miami summers,” says Miller, who’s attired in a gray turtleneck. “I never used my office at home as a core part of my working life before.” Miller, a renaissance business figure who relishes bringing Silicon Valley–hatched technology to an old-line sector, spent his

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Stuart Miller Executive chairman, Lennar

“I went to the Lennar offices every day in a suit and tie, even in the sweltering Miami summers. I never used my home office as a core part of my working life before.”

MOVING UP Lennar never subscribed to the theory that millennials would want to raise their families in high-rises. The company was right—and the pandemic accelerated the move to suburbs such as this one in San Diego.

volumes are jumping far faster. And Lennar believes this boom has legs. LENNAR IS A DIFFERENT BREED

from a basic, sticks-and-bricks homebuilder. The builder traces its origins back to the mid-1950s when 23-year-old Leonard Miller, who started in the business counting lumber, parlayed a $10,000 commission he had received as a broker into a 42-site subdivision that he merged with a small Miami homebuilder cofounded by entrepreneur Arnold Rosen. The name Lennar is a creative fusion of “Lenn” for Leonard and “ar” for Arnold. Stuart joined the enterprise at age 12 or 13. “I was too young to handle a lawn mower, so I was assigned to the raking crew,” he recalls. Young Miller graduated to teenage laborer, and later managed work sites. In 1971, Lennar went public at a valuation of $8.7 million. Eleven years later, Stuart joined Lennar after graduating from Harvard and the University of Miami law school. He at ﬁrst shunned homebuilding

“to avoid being seen as the boss’s son,” and instead went “knocking on doors” to lease commercial buildings. But the double-digit mortgage rates that hammered the industry in the 1980s handed him a big opportunity. He found creative ways to build and market homes at extremely low costs, which kept them affordable. In 1997, Miller rose to CEO, a job he held until 2018. Among his coups was buying big swaths of land on the cheap during the ﬁnancial crisis of 2007–08, often at prices lower than the cost of the streets and sidewalks. Miller attributes Lennar’s current success to the “group thinking process” of his top team. The crew regularly meets several hours a day, in the office and over lunches and dinners pre-pandemic, virtually during the crisis. Miller, Jaffe, Beckwitt, along with CFO Diane Bessette and LenX head Eric Feder, “duke it out” in ﬁerce debates that, says Miller, meld into strong lines of strategy. These days Miller oversees LenX, which amounts to a private equity arm within Lennar that makes

investments in real estate tech. The Lennar-backed platform Opendoor—which uses A.I. to value and make almost instantaneous offers on any home—went public in December, bringing Lennar a $470 million gain in its first quarter. Other LenX startups provide fully digital insurance underwriting for most Lennar buyers; are developing a digital title insurance and escrow platform; and are honing technology that conserves water and channels the earth’s energy to heat and cool homes. Lennar already benefits from major scale in a fragmented industry in which the top 17 builders hold just 36% of the market. Its $22.5 billion in 2020 revenues narrowly edged D.R. Horton (No. 148 on the 500 this year), the mega-rival that was first mover at the entry level, and operates mainly in the low-priced tiers where Lennar is expanding. Lennar builds in the relatively expensive Northeast markets such as Pennsylvania and New Jersey, but its sweet spot is the Sunbelt. Its largest markets are Florida (28% of sales), Texas (18%), and

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SUNNY OUTLOOK Lennar executives Jon Jaﬀe, Diane Bessette, Eric Feder, Rick Beckwitt, and Stuart Miller photographed at Urbana, a townhome community in Doral, Fla. Lennar’s business in the Southeast has exploded in recent years.

LENNAR

California (15%), and it ranks ﬁrst in 20 major metros, including Phoenix, Orlando, Miami, Riverside, Las Vegas, Charlotte, and Tampa, and rates second to Texas-based D.R. Horton in Dallas, Houston, and Austin. Fast-expanding entry-level offerings now make up 35% of homes sold by Lennar, with prices ranging from $175,000 to $250,000 in Dallas/Fort Worth to the mid-$400,000s in the Denver area. The bulk of its production remains in ﬁrst-time move-up models that in the Miami area start in the mid-$300,000s. In the Galiano Pointe development 20 miles southwest of Miami, a sleek stucco model at 2,403 square feet, featuring

four bedrooms, three baths, and a two-car garage, goes for $584,000. The ﬁrst quarter of 2021 illustrates the phenomenal strength of the market: In Q1, homebuilding sales rose 18.5% over the same three months last year, to $4.9 billion. The key is that Lennar has been able to supercharge pricing power and volumes—a crucial double boost because costs of both materials and labor are rising. In the past year, the cost of lumber, which along with framing accounts for 15% of a home’s construction price, has doubled, raising the cost of Lennar’s average home by about $24,000. Yet Lennar’s gross margins—the

HOUSING STARTS—AND STOPS Construction ground to a halt following the Great Recession, and production still hasn’t ramped up to pre-2008 levels, leading to today’s supply crunch and rapid price increases. NEW RESIDENTIAL CONSTRUCTION PROJECTS STARTED BY YEAR 2.5 MILLION SINGLE UNIT

MULTIPLE UNITS

2.0

START OF GREAT RECESSION

1.5 AVERAGE 1970–2020

1.0

0.5

0 1970

1980

NOTE: PRIVATELY OWNED HOUSING UNITS

1990

2000

2010

2020

SOURCE: CENSUS BUREAU

difference between revenue collected and the basic costs of land and construction—have skyrocketed from $849 million to $1.22 billion, a gain of 44%. It now pockets $99,200 per house versus $82,200 last year. More pricing leverage is in the cards: The average price of newly ordered homes was $420,000 in the ﬁrst quarter, compared with $404,000 last year. Indeed, in a twist few could have predicted, the pandemic powerfully transformed Lennar’s proﬁtability. THE HOMEBUILDING BUSINESS

is all about lead times—and Lennar, whose stock has risen 137% to $95 since the start of 2019, is reaping the fruits of a big bet placed a few years back. Following the ﬁnancial crisis of 2007–08, “the entry level shut down,” recalls Beckwitt. “Lenders tightened standards so that young people couldn’t get mortgages. Instead, they were renting apartments and moving in with their parents.” By contrast, banks were much more willing to lend to folks in their late thirties and forties who had higher incomes, more assets, and were potential customers for products from credit cards to brokerage accounts. But Miller believed that millennials would eventually buy at the same rate as their parents. “A common narrative was that millennials were going to migrate to city life, not normalize to suburban life when they married and had kids,” he says. “Our view was always that the production deﬁcit in entry-level homes would be reversed, and that millennials would raise their families in the suburbs, that they’d want parks and backyards.” Around 2016 he saw demand building in the two markets where Lennar did do starter homes, Texas

F O R T U N E J U N E /J U LY 2 0 2 1 1 5 7

and Florida. Miller also predicted that the 2017 tax law that slashed deductions for state and local levies would cause an exodus from coastal cities to the Sunbelt. Pre-pandemic, Stuart, Jaffe, and Beckwitt were convinced that the slow but steady flow of millennials into housing would become a torrent. Lennar’s shift down-market was part of a blueprint to hike profitability. It takes half as long to build and deliver an entry-level home that’s smaller, occupies less land, and requires lower-end siding and moldings than a roomier, fancier move-up manse. Lennar could deliver eight homes a week, say, in a starter section, at least twice the number in a move-up community. Naturally, a $400,000 home yields more dollars in profit than one fetching $250,000. But the Lennar brain trust figured that if it could sell smaller footprint starter PHOTOGRAPH BY JEFFERY SALTER

homes at extremely high volumes and speed, it could generate much bigger revenues on the same or even lower levels of inventory of land and in-ground construction. It could free up capital from one project faster to start the next one. That game plan would generate richer margins on assets and equity. D.R. Horton was ﬁrst to wager big on the millennials’ return by launching its no-frills Express brand in 2013. But Miller still saw plenty of space for Lennar. “It was a part of the marketplace homebuilders hadn’t been building for,” he says. “The underproduction weighs more heavily on the entry-level market to this day.” In 2017, Lennar made its ﬁrst major foray toward achieving the scale required to bolster its new strategy by agreeing to purchase rival CalAtlantic for $9.3 billion. The deal allowed Lennar to leapfrog D.R. Horton to become America’s

biggest homebuilder. The acquisition’s goal was to greatly strengthen Lennar’s position in markets where it was already big, notably California, Florida, and Arizona. “The concept was to move CalAtlantic, which owned a lot of land, to lower price points,” says Jaffe. The deal enabled Lennar to give more work to framers, electricians, and plumbing contractors in metros where the combination commanded a much bigger market share, hence lowering labor costs. Its expanded footprint also delivered big economies of scale in purchasing everything from appliances to aluminum siding. Lennar’s down-market move caught a rising wave. From the start of 2012 to June 2017, the combined mediumhigh and high-priced categories, as deﬁned by the American Enterprise Institute’s Housing Center, rose faster than the two entry-level tiers, labeled “low and low-medium.” But in mid-

FORTUNE 500

LENNAR

2017, the formerly sluggish entry level lifted off. From then until the close of 2020, prices in low-medium, the larger swath of the starter categories, grew 18% to $252,000, while medium-high and high declined 4%. “In that period, all the growth in new home prices came in low-medium,” says Ed Pinto, director of the AEI Housing Center. The trajectory was similar in sales: The low-medium bin rose 50%, triple the combined increase in medium-high and high. That outperformance continued until the pandemic-driven explosion starting in mid-2020. Then, a reversal occurred that Pinto marks as a first in the annals of housing bull markets. Although starter homes continued to post bigger gains in volume, suddenly the fancier homes were garnering the fastest-rising prices. In March, the medium-high tier rose an incredible 21% over the previous year, and “high” vaulted 18%. The entry categories registered still stellar increases of 12% to 13%. The reason for this anomaly: The “arbitrage” effect—the exodus from Seattle, San Francisco, and New York of workfrom-anywhere folks in search of bargains to Orlando, Sacramento, and Raleigh—is inflating move-up homes in those super-affordable metros. That’s a trend that Frank Walker, Lennar’s division president in Colorado, sees vividly. “We’re drawing people from the coasts who can work from anywhere and get a better lifestyle, and much more home, for their money,” says Walker. “Two years ago, those people couldn’t have made that move.” Joy Broddle, who oversees Las Vegas, says Lennar is benefiting from a big influx from pricey California cities. Its bestselling design is the “Next Gen” home, which encompasses a separate suite with its own en-

RANK 129

AN UNEXPECTED HOME RUN Short supply and a surge in demand have driven prices—as measured by the Case-Shiller U.S. National Home Price index—to previously unimaginable heights. GROWTH IN HOME PRICES SINCE 2000 150%

139.8% 125

100

0 2000

2010

2020

SOURCE: S&P/CASE-SHILLER U.S. NATIONAL HOME PRICE INDEX (EXISTING SINGLE-FAMILY HOME PRICES)

trance and kitchen that is popular for live-in grandparents and is now also being used as a roomy workspace or home gym. Customers are also willing to move much farther from their jobs than ever before. Broddle ﬁnds that people working and renting in the Henderson, Nev., area would seldom buy a home 29 miles northwest in Summerlin because of the long commute—even if they could afford to upgrade. Now, Lennar’s subdivisions are seeing a parade of buyers previously tied to their jobs in Henderson who love Summerlin’s breathtaking desert views. Carlos Gonzalez, who heads Len-

nar’s operations in Miami-Dade, observes that young professionals who once flocked to downtown apartments are now buying in the suburbs. “Before the pandemic, that millennial market barely existed for us,” he says. Winning the rodeo is the Lone Star State. Texas is benefiting from a nexus of all the big trends and migration from the coasts—coming from both refugees seeking bigger, cheaper homes who can work in San Francisco and live in Dallas, and the people moving to work in one of the nation’s strongest cities for job creation. David Grove, who heads the Dallas/ Fort Worth division, says that many renters and owners who already had long commutes now will move much farther from their jobs because they no longer have to commute at all, and can bank big savings on transportation, freeing funds to buy a home. In 2018, Lennar closed on 2,000 homes in Dallas/Fort Worth. This year the figure is 2,600, and by the end of 2021, Grove expects to hit over 3,000. A big reason: The market has one of the highest concentrations of starter homes in the Lennar network. Its $175,000 to $250,000 entry-level abodes account for 70% of sales. Much as he’s become attached to his home office, Stuart Miller ventures out many evenings to his favorite eatery, Prime Italian in Miami’s South Beach. There, he always occupies the “elbow” at the same corner of the bar when dining alone, or with a frequent dinner companion such as LenX head Feder, who sits diagonally across. The two, who have been a fantastically successful team as tech investors, often joke about that early vision of Lennar’s “Home of the Future.” Miller was clearly, and comically, ahead of his time. Now, it appears, he’s in exactly the right spot.

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CONTENT FROM CENTENE

PROFILE 2021 | FORTUNE 500

Rising to Meet Challenges Head-On Centene has provided high-quality health care to underserved populations for more than 35 years—and its good work is continuing to evolve.

IN A WORLD RAVAGED BY COVID-19,

RIBERA SALUD, CENTENE’S HOSPITAL SYSTEM IN SPAIN, ADOPTED NEW TECHNOLOGY TO CARE FOR PATIENTS AND PROTECT THE HEALTH OF ITS WORKFORCE DURING THE COVID-19 PANDEMIC.

accessible and affordable health care is more important than ever. Centene’s steadfast commitment to vulnerable populations provides access to comprehensive services for more than 25 million individuals. Centene, a St. Louis–based health care company, debuted on the Fortune 500 list in 2010. Since then, the organization has taken off, climbing more than 400 spots and expanding health plan operations to all 50 states and internationally. Its growth has also been reﬂected in its ﬁnancials, with expected revenue for 2021 of approximately $120 billion.

“The fact that we’re doing so well as an organization, particularly now, is a true testament to our more than 69,000 employees,” says Michael Neidorff, chairman, president, and CEO of Centene. “Our teams are dedicated to keeping our members at the forefront of all we do, and they are deeply committed to shaping a better world of health care.” The challenge for Centene over the past year has been less about business growth and more about responding to the nation’s ongoing health crisis, including developing technological solutions that will help its most vulnerable members. The company has not only met the challenge but excelled: It continues to digitize the administration of health care and accelerate innovation and modernization across the enterprise. Last year, Centene acquired Apixio, a health care analytics company offering artificial intelligence (A.I.) technology solutions, which helped the company leverage A.I. and data science to transform its advanced technology efforts and enrich existing applications and services. With this new capability, Centene is leading the digital transformation of health care and creating a seamless experience for members and providers. As the COVID-19 crisis has evolved, Centene has evolved with it. Last June, the firm teamed up with the National Minority Quality Forum to assess the impact of COVID-19 on racial minorities and underserved communities while working with Quest Diagnostics to deliver rapid and comprehensive COVID-19 testing to Federally Qualified Health Centers. Despite big investments in new technology, and even bigger changes to the country as a whole, Centene’s mission has stayed the same since the beginning. Neidorff says: “We provide accessible, high-quality, and affordable health care to those we serve—particularly those who have been hit hardest by the pandemic— and we will continue to do so by leveraging our talent, processes, and resources to achieve operational excellence.” ■

Centene is honored to be included on the FORTUNE 2020 Change the World® list and the 2021 FORTUNE 500® list. If you are interested in joining our team, please visit us at: jobs.centene.com

to our nearly 70,000 dedicated employees for bringing our purpose to life: Transforming the health of the community, one person at a time.

© 2021 Centene Corporation. All rights reserved. From FORTUNE. © 2021, 2020 Fortune Media IP Limited. All rights reserved. Used under license. FORTUNE and The World’s Most Admired Companies are registered trademark of Fortune Media IP Limited and are used under license. FORTUNE and Fortune Media IP Limited are not aﬃliated with, and do not endorse the product or services of, Centene Corporation.

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F O R T U N E J U N E /J U LY 2 0 2 1 1 6 3

FORTUNE 500

THE LISTS F • 1

F • 21

F • 22

F • 23

F • 27

F • 38

THE 500 LARGEST U.S. CORPORATIONS

ARRIVALS AND DEPARTURES

EXPLANATIONS AND NOTES

COMPANY PERFORMANCE

THE 500 RANKED WITHIN INDUSTRIES

INDEX

TO SEE COMPANIES FROM 501 TO 1,000, VISIT FORTUNE.COM.

ILLUSTRATION BY ARTUR TENCZYNSKI

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

LARGEST U.S. CORPORATIONS 20-YEAR REVENUE RANKING FOR THE FORTUNE 2021 TOP 10 COMPANIES RELATIVE TO ONE ANOTHER

2002

2003

2004

1–28

2005

500

2007

REVENUES

2008

2009

PROFITS

2011

ASSETS

2012

STOCKHOLDERS’ EQUITY

$ millions

Rank

1 WALMART Bentonville, Ark. 1

559,151.0

6.7

13,510.0

(9.2)

2 AMAZON.COM Seattle, Wash.

386,064.0

37.6

21,331.0

84.1

321,195.0

93,404.0

4 APPLE Cupertino, Calif. 2

274,515.0

5.5

57,411.0

3.9

323,888.0

65,339.0

5 CVS HEALTH Woonsocket, R.I.

268,706.0

4.6

7,179.0

8.2

230,715.0

69,389.0

7 UNITEDHEALTH GROUP Minnetonka, Minn.

257,141.0

6.2

15,403.0

11.3

197,289.0

65,491.0

6 BERKSHIRE HATHAWAY Omaha, Neb.

245,510.0

(3.6)

42,521.0

(47.8)

873,729.0

443,164.0

8 MCKESSON Irving, Texas 3

231,051.0

7.8

900.0

212

61,247.0

139

$ millions

% change from 2019

2010

% change from 2019

RANK 2020 2019

2,547.1

$ millions

Rank

252,496.0

$ millions Rank 80,925.0

5,092.0 287

10 AMERISOURCEBERGEN Chesterbrook, Pa. 2

189,893.9

5.7

(3,408.7)

481

(498.5)

44,274.8

178

11 ALPHABET Mountain View, Calif.

182,527.0

12.8

40,269.0

17.3

319,616.0

222,544.0

3 EXXON MOBIL Irving, Texas

181,502.0 E

(31.5)

(22,440.0)

500

(256.5)

332,750.0

157,150.0

9 AT&T Dallas, Texas

171,760.0

(5.2)

(5,176.0)

486

(137.2)

525,761.0

161,673.0

14 COSTCO WHOLESALE Issaquah, Wash. 4

166,761.0

9.2

4,002.0

9.4

55,556.0

144

18,284.0

110

13 CIGNA Bloomfield, Conn.

160,401.0

4.5

8,458.0

50,321.0

16 CARDINAL HEALTH Dublin, Ohio 5

152,922.0

5.1

(3,696.0)

483

F 1 F O R T U N E J U N E /J U LY 2 0 2 1

2006

65.7

155,451.0

(371.2)

40,766.0

186

(1,018.9) 486

1,789.0 403

21 MICROSOFT Redmond, Wash. 5

143,015.0

13.6

44,281.0

12.8

301,311.0

118,304.0

19 WALGREENS BOOTS ALLIANCE Deerfield, Ill. 4

139,537.0

2.0

456.0

297

(88.5)

87,174.0

20,637.0

23 KROGER Cincinnati, Ohio 1

132,498.0

8.4

2,585.0

102

55.8

48,662.0

162

9,576.0 203

26 HOME DEPOT Atlanta, Ga. 1,6

132,110.0

19.9

12,866.0

14.4

70,581.0

118

3,299.0 334

17 JPMORGAN CHASE New York, N.Y.

129,503.0

(9.1)

29,131.0

(20.0)

3,386,071.0

279,354.0

20 VERIZON COMMUNICATIONS New York, N.Y.

128,292.0

(2.7)

17,801.0

(7.6)

316,481.0

67,842.0

24 61

12 FORD MOTOR Dearborn, Mich.

127,144.0

(18.4)

(1,279.0)

466

(2,821.3)

267,261.0

30,690.0

18 GENERAL MOTORS Detroit, Mich.

122,485.0

(10.7)

6,427.0

(4.5)

235,194.0

45,030.0

29 ANTHEM Indianapolis, Ind.

121,867.0

16.9

4,572.0

(4.9)

86,615.0

33,199.0

42 CENTENE St. Louis, Mo.

111,115.0

48.9

1,808.0

131

36.9

68,719.0

122

25,773.0

24 FANNIE MAE Washington, D.C. 7

106,437.0

(11.5)

11,805.0

(16.6)

3,985,749.0

25,259.0

28 COMCAST Philadelphia, Pa.

103,564.0

(4.9)

10,534.0

(19.3)

273,869.0

90,323.0

15 CHEVRON San Ramon, Calif. 8

94,692.0 E

(35.4)

(5,543.0)

488

(289.6)

239,790.0

131,688.0

34 DELL TECHNOLOGIES Round Rock, Texas 1

94,224.0

2.2

3,250.0

(29.6)

123,415.0

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

2,479.0 374

FORTUNE 500

Walmart

Amazon

Apple

Alphabet

took the top spot on the 500 for the ninth straight year, adding some $35 billion in revenue. But increased costs helped drive its profits down 9%.

remained at No. 2 but continued its torrid growth (see chart below). Over the past decade, its sales have jumped from $34 billion to $386 billion.

moved up one spot to No. 3 and took the crown as the 500’s most profitable company, earning more than $50 billion for a third straight year.

cracked the top 10 for the first time, as the Google parent landed at No. 9 with some $183 billion in revenue and more than $40 billion in profits.

2021 RANK NO. 1 WALMART NO. 2 AMAZON NO. 3 APPLE NO. 4 CVS HEALTH NO. 5 UNITEDHEALTH NO. 6 BERKSHIRE HATHAWAY NO. 7 MCKESSON NO. 8 AMERISOURCEBERGEN NO. 9 ALPHABET NO. 10 EXXON MOBIL 2013

2014

2015

MARKET VALUE

2016

2017

2018

PROFITS AS % OF …

2020

EARNINGS PER SHARE

3/31/21

Revenues % Rank

2019

Assets % Rank

Stockholders’ equity % Rank

2020 $

% change from 2019

2021

TOTAL RETURN TO INVESTORS 2010–2020 annual growth rate % Rank

2020 %

2010–2020 annual rate % Rank

Industry table RANK number 2020

$ millions

Rank

382,642.8

2.4

333

5.4

158

16.7

162

4.75

(8.5)

0.6

250

23.4

130

13.0

180

1,558,069.6

5.5

248

6.6

127

22.8

117

41.83

81.8

32.4

76.3

33.6

2,050,665.9

20.9

17.7

87.9

3.28

10.3

19.7

82.3

29.6

98,653.2

2.7

324

3.1

248

10.3

250

5.46

7.5

8.2

151

(5.1)

334

9.3

263

Rank

351,725.0

6.0

233

7.8

23.5

114

16.03

11.9

14.6

21.3

139

27.5

587,823.0

17.3

4.9

177

9.6

265

26,668.00

(46.5)

12.9

2.4

284

11.2

218

31,044.0

204

0.4

382

1.5

314

17.7

155

4.95

2,811.8

0.7

249

27.2

106

10.4

230

24,169.7

237

(1.8)

421

(7.7)

474

—

(16.65)

(512.1)

—

17.1

168

12.8

189

12.6

1,392,561.8

22.1

236,355.4

(12.4)

473

(6.7) 469

18.1

153

58.61

19.2

16.1

(14.3)

435

(5.25)

(256.3)

—

215,878.5

(3.0)

435

(1.0)

155,984.3

2.4

334

7.2

418

(3.2) 400

(0.75)

(139.7)

—

112

21.9

9.02

9.2

11.9

90 52

124

30.9

19.4

(36.0)

452

(1.9)

381

(21.3)

420

5.5

326

32.7

21.2

1.8

287

19.0

10.0

218

6.1

316

5.3

254

5.4

155

16.8

161

22.96

70.8

16.7

278

(2.4)

429

(9.1)

480

(206.6)

475

(12.61)

(378.4)

—

1,778,228.2

31.0

14.7

37.4

5.76

13.8

10.6

114

42.7

25.9

47,455.3

144

0.3

384

0.5

364

2.2

360

0.52

(87.9)

(13.1)

296

(29.1)

439

2.7

351

27,064.3

223

2.0

345

5.3

159

27.0

100

3.27

60.3

14.2

11.9

205

13.0

182

328,775.4

9.7

164

18.2

390.0

11.94

16.5

19.5

24.6

122

25.3

464,530.8

22.5

0.9

343

10.4

248

8.88

(17.2)

8.4

145

(5.6)

339

14.6

149

240,633.3

13.9

105

5.6

151

26.2

104

4.30

(7.5)

16.9

(0.1)

297

10.0

248

48,739.0

136

(1.0)

407

(4.2)

407

(0.32)

(3,300.0)

—

(3.5)

326

(2.5)

383

82,794.9

5.2

257

2.7

261

14.3

181

4.33

(5.3)

4.1

212

16.2

172

4.0

343

87,908.9

3.8

300

5.3

164

13.8

190

17.98

(2.7)

10.0

125

7.9

238

20.8

37,169.6

175

1.6

354

2.6

271

7.0

305

3.12

(0.6)

20.8

(4.5)

332

25.2

2,397.2

448

11.1

142

0.3

375

46.7

0.00

(91.7)

—

(23.4)

429

23.1

247,859.3

10.2

153

3.8

214

11.7

223

2.28

(19.4)

13.5

19.1

150

19.0

201,865.0

(5.9)

453

(2.3) 440

(4.2)

408

(2.96)

(292.2)

—

(25.7)

431

3.2

348

67,229.1

108

3.4

308

4.22

(30.0)

—

42.6

—

(0.5) 408

2.6

270

131.1

F O R T U N E J U N E /J U LY 2 0 2 1 F 2

83,976.1 17,840.3

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

29–79

500

REVENUES

PROFITS

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

% change from 2019

$ millions

Rank

% change from 2019

25 BANK OF AMERICA Charlotte, N.C.

93,753.0

(17.5)

17,894.0

(34.8)

37 TARGET Minneapolis, Minn. 1

93,561.0

19.8

4,368.0

33.1

51,248.0

156

RANK 2020 2019

$ millions

Rank

2,819,627.0

$ millions Rank 272,924.0

14,440.0

141

44 LOWE’S Mooresville, N.C. 1

89,597.0

24.2

5,835.0

36.3

46,735.0

170

22 MARATHON PETROLEUM Findlay, Ohio

88,952.0 ¶,E

(28.7)

(9,826.0)

495

(472.6)

85,158.0

22,199.0

31 CITIGROUP New York, N.Y.

88,839.0

(14.1)

11,047.0

(43.1)

2,260,090.0

199,442.0

46 FACEBOOK Menlo Park, Calif.

85,965.0

21.6

29,146.0

57.7

159,316.0

128,290.0

1,437.0 422 89

43 UNITED PARCEL SERVICE Atlanta, Ga.

84,628.0

14.2

1,343.0

161

(69.8)

62,408.0

134

35 JOHNSON & JOHNSON New Brunswick, N.J.

82,584.0

0.6

14,714.0

(2.7)

174,894.0

63,278.0

30 WELLS FARGO San Francisco, Calif.

80,303.0

(22.7)

3,301.0

(83.1)

1,955,163.0

184,887.0

33 GENERAL ELECTRIC Boston, Mass.

79,619.0

(16.4)

5,704.0

—

253,452.0

35,552.0

3,738.9

(33.1)

299,104.5

126,078.6

20,899.0

(0.7)

153,091.0

81,038.0

18 147

36 STATE FARM INSURANCE Bloomington, Ill.

78,898.0

(0.6)

45 INTEL Santa Clara, Calif.

77,867.0

8.2

657.0 457 29

77,155.0

18.9

3,367.0

24.4

34,969.0

200

13,728.0

38 INTERNATIONAL BUSINESS MACHINES Armonk, N.Y.

73,620.0

(4.6)

5,590.0

(40.7)

155,971.0

20,597.0

50 PROCTER & GAMBLE Cincinnati, Ohio 5

70,950.0

4.8

13,027.0

234.3

120,700.0

46,521.0

51 PEPSICO Purchase, N.Y.

70,372.0

4.8

7,120.0

(2.7)

92,918.0

13,454.0 149

47 FEDEX Memphis, Tenn. 9

69,217.0

(0.7)

1,286.0

166

73,537.0

112

48 METLIFE New York, N.Y.

67,842.0

(2.6)

5,407.0

(8.3)

795,146.0

74,558.0

41 FREDDIE MAC McLean, Va. 7

66,228.0

(11.8)

7,326.0

1.6

2,627,415.0

16,413.0

125

65,494.0 E

(229.2)

HUMANA Louisville, Ky.

138.1

(40.2)

(3,975.0)

485

65,398.0

9.3

6,833.0

49 WALT DISNEY Burbank, Calif. 2

65,388.0

(6.0)

(2,864.0)

477

(125.9)

54 ARCHER DANIELS MIDLAND Chicago, Ill.

64,355.0

(0.5)

1,772.0

135

28.5

55 ALBERTSONS Boise, Idaho 10,11

62,455.1

3.2

466.4

295

32 VALERO ENERGY San Antonio, Texas

60,115.0 E

(41.5)

(1,421.0)

469

40 BOEING Chicago, Ill.

58,158.0

(24.0)

(11,873.0)

497

53 PRUDENTIAL FINANCIAL Newark, N.J.

57,033.0

(12.0)

(374.0)

429

58 HP Palo Alto, Calif. 12

56,639.0

(3.6)

2,844.0

39 RAYTHEON TECHNOLOGIES Waltham, Mass. 13

56,587.0

(26.6)

(3,519.0)

54,139.6

64.6

169.6

27 PHILLIPS 66 Houston, Texas

57 58

F 3 F O R T U N E J U N E /J U LY 2 0 2 1

BOEING The turbulence continues for the aerospace giant, which lost $11.9 billion last year. Crashes of its 737 Max aircraft in 2018 and 2019 killed 346 people, exposing design flaws that grounded the plane for over a year. The pandemic virtually halted global air travel in 2020. Then, this spring, electrical problems with the 737 Max grounded about 100 of the planes, forcing Boeing to “pause” deliveries. —Geoﬀ Colvin

LOCKHEED MARTIN Bethesda, Md.

100 STONEX GROUP New York, N.Y. 2,14

18,295.0 109

54,721.0

145

50,710.0

157

201,549.0

83,583.0

49,719.0

161

20,000.0

255.8

24,735.1

249

2,278.1

380

(158.7)

51,774.0

154

18,801.0 105

—

152,136.0

(18,316.0) 500

(108.9)

940,722.0

(9.8)

34,681.0

201

(2,228.0) 491

482

(163.6)

162,153.0

72,163.0

359

99.3

13,474.9

342

9.7

60 GOLDMAN SACHS GROUP New York, N.Y.

53,498.0

(0.8)

9,459.0

11.7

1,163,028.0

56 SYSCO Houston, Texas 5

52,893.3

(12.0)

215.5

346

(87.1)

22,628.3

262

61 MORGAN STANLEY New York, N.Y. 15

52,047.0

(3.3)

10,996.0

21.6

1,115,862.0

65 HCA HEALTHCARE Nashville, Tenn.

51,533.0

0.4

3,754.0

7.1

47,490.0

164

18,984.0 103 6,015.0 263

67,425.0

25 21

767.5 452 95,932.0

1,158.6 432 101,781.0

572.0 461

63 CISCO SYSTEMS San Jose, Calif. 16

49,301.0

(5.0)

11,214.0

(3.5)

94,853.0

37,920.0

71 CHARTER COMMUNICATIONS Stamford, Conn.

48,097.0

5.1

3,222.0

93.2

144,206.0

23,805.0

69 MERCK Kenilworth, N.J.

47,994.0

2.5

7,067.0

(28.2)

91,588.0

25,317.0

75 BEST BUY Richfield, Minn. 1

47,262.0

8.3

1,798.0

132

16.7

19,067.0

285

4,587.0 296

73 NEW YORK LIFE INSURANCE New York, N.Y.

46,712.4

5.9

(822.3)

454

(181.9)

359,312.5

21,728.4

99 ABBVIE North Chicago, Ill.

45,804.0

37.7

4,616.0

(41.4)

150,565.0

13,076.0

155

87 PUBLIX SUPER MARKETS Lakeland, Fla.

45,204.0

17.5

3,971.8

32.2

28,094.1

231

19,241.8

102

72 ALLSTATE Northbrook, Ill. 17

44,791.0

0.3

5,576.0

15.0

125,987.0

30,217.0

77 LIBERTY MUTUAL INSURANCE GROUP Boston, Mass. 18

43,796.0

1.3

758.0

236

(27.4)

145,377.0

25,926.0

66 AMERICAN INTERNATIONAL GROUP New York, N.Y.

43,736.0

(12.1)

(5,944.0)

489

(277.5)

79 TYSON FOODS Springdale, Ark. 2

43,185.0

1.8

2,061.0

119

586,481.0

66,362.0

4.1

34,456.0

204

15,254.0

135 119

86 PROGRESSIVE Mayfield Village, Ohio

42,658.1

9.3

5,704.6

43.7

64,098.3

130

17,038.6

115 BRISTOL-MYERS SQUIBB New York, N.Y.

42,518.0

62.6

(9,015.0)

494

(362.1)

118,481.0

37,822.0

74 NATIONWIDE Columbus, Ohio

41,929.8

(4.7)

(138.4)

411

(116.7)

256,589.3

16,485.4

124

64 PFIZER New York, N.Y. 19

41,908.0

(19.0)

9,616.0

(40.9)

154,229.0

63,238.0

62 CATERPILLAR Deerfield, Ill.

41,748.0

(22.4)

2,998.0

(50.8)

78,324.0

105

15,331.0

132

81 TIAA New York, N.Y. 20

41,619.3

2.9

558.1

271

(77.3)

654,252.0

40,001.3

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

FORTUNE 500

Boeing 737 Max airplanes parked at Boeing Field in Seattle on Nov. 18, 2020.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21

$ millions

Rank

Assets % Rank

2020 $

% change from 2019

2010–2020 annual growth rate % Rank

333,788.4

19.1

0.6

358

6.6

311

1.87

(32.0)

—

98,760.9

4.7

275

8.5

30.2

8.64

35.8

8.0

155

406.1

136,407.9

6.5

224

12.5

34,873.8

187

(11.0)

471

(11.5) 484

151,806.4

12.4

123

0.5

838,724.2

33.9

18.3

7.75

41.2

18.5

(44.3)

456

(15.13)

(481.1)

—

367

5.5

328

4.72

(41.3)

3.0

22.7

118

10.09

56.9

—

222

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

(11.3)

378

10.0

247

40.5

14.5

151

36.3

22.6

(26.9)

433

—

(19.8)

415

3.9

33.1

—

344

147,791.6

1.6

355

2.2

291

204.4

1.54

(69.9)

(7.8)

288

48.6

12.1

202

432,685.3

17.8

8.4

23.3

116

5.51

(2.1)

1.4

244

10.8

212

13.0

179

161,521.0

4.1

289

0.2

383

1.8

364

0.41

(89.9)

(15.5)

301

(41.7)

455

2.7

353

115,342.5

7.2

211

2.3

287

16.0

168

0.58

—

(5.9)

278

(2.7)

317

(2.1)

382

4.7

272

1.3

326

3.0

352

—

260,630.1

26.8

13.7

25.8

107

4.94

133

(14.7)

397

12.4

195

54,087.7

128

4.4

282

9.6

24.5

110

119,080.3

7.6

205

3.6

226

27.1

—

4.9

9.4

—

25.31

25.9

14.6

12.7

200

23.3

6.23

(41.0)

(6.0)

281

(1.1)

306

1.7

364

333,493.1

18.4

10.8

28.0

4.96

246.9

1.9

242

14.1

187

11.4

215

195,207.7

10.1

155

7.7

103

52.9

5.12

(1.5)

2.7

228

11.8

206

11.8

209

75,367.8

1.9

348

1.7

302

7.0

304

4.90

141.4

2.7

229

75.0

11.8

208

53,762.6

130

8.0

196

0.7

355

7.3

302

5.68

(6.3)

6.6

173

(3.4)

324

4.9

333

1,332.6

464

11.1

143

0.3

377

44.6

0.01

35,703.6

182

(6.1)

455

(7.3)

471

(20.9)

443

(9.06)

113.6

—

(22.4)

426

22.6

(233.8)

—

(33.8)

446

—

102,984.2

10.4

149

13.5

24.30

334,952.5

(4.4)

441

(1.4) 430

(3.4)

401

(1.58)

(123.8)

31,834.5

200

2.8

319

3.6

229

8.9

277

3.15

29.1

0.5

8,877.7

360

0.7

371

1.9

299

20.5

133

—

10.7

11.8

(7.6)

423

214

(2.4)

428

(2.7) 444

(20.4)

486

(7.8)

475

—

36,022.4

179

(0.7)

401

(0.0) 394

(0.6)

39,579.5

167

5.0

263

8.2

117,143.9

(6.2)

456

(2.2)

437

(4.9)

1,284.4

465

0.3

385

1.3

325

22.1

116,903.0

17.7

0.8

347

40,189.8

163

0.4

381

1.0

337

146,161.9

21.1

1.0

336

10.8

63,458.7

112

7.3

207

7.9

656.3

218,308.5

22.7

11.8

29.6

128,965.7

6.7

220

2.2

289

13.5

197

195,062.0

14.7

7.7

102

27.9

2.78

(27.0)

25.8

28,707.7

219

3.8

299

9.4

39.2

6.84

19.0

8.3

(1.8)

420

10.1

156

3.1

8.8

179

188

12.4

122

1.7

— 34,800.2 — 39,848.9

166

(0.2) 399

254

(6.3)

342

21.5

26.0

118

18.6

12.4

201

8.2

284

—

(3.50)

(159.9)

—

(35.6)

450

14.0

165

(20.88)

—

(33.8)

445

15.2

138

(1.00)

(109.9)

—

2.00

(3.4)

(5.9)

410

(2.59)

(140.4)

123

8.61

96.1

9.9

258

24.74

17.6

6.5

176

17.6

162

6.2

312

18.6

149

0.42

(86.9)

(14.4)

299

(10.6)

372

13.0

184

239

6.46

24.5

9.4

134

37.9

11.7

211

10.93

8.5

—

11.8

207

—

2.64

1.1

7.1

15.40

106.7

—

384

—

(3.8)

404

249

35.3

14.1

20.6

4.4

192

18.5

352

0.5

365

(13.6)

476

(1.0)

419

—

280

— 39.9

(10.6)

371

6.5

308

24.5

123

4.7

334

(15.0)

400

7.1

303

18.6

153

9.4

260

(3.6)

327

11.3

216

36.4

31.4

(7.3)

350

12.3

199

147

16.5

170

14.6

150

165

—

2.72

(48.5)

—

27.2

—

107

—

130

5.67

34.7

12.8

—

151

17.31

23.4

26.0

(0.1)

295

15.6

2.9

355

—

(9.0)

427

(6.88)

(284.0)

—

(23.0)

427

— 132

— (0.7)

378

72 73

27,099.6

222

4.8

271

6.0

141

13.5

198

5.64

4.4

10.6

115

(27.2)

436

15.7

129

55,946.5

122

13.4

112

8.9

33.5

9.66

43.8

19.6

41.3

21.3

141,027.9

(21.2)

487

(7.6)

473

(23.8)

444

(3.99)

(298.5)

—

(0.5)

300

12.4

196

(0.3)

396

(0.1)

396

(0.8)

386

—

202,096.9

22.9

6.2

130

15.2

173

1.71

(40.4)

5.3

194

3.2

274

12.3

198

126,439.6

7.2

208

3.8

215

19.6

144

5.46

(49.2)

2.8

226

27.0

111

9.9

249

1.3

359

0.1

389

1.4

368

—

F O R T U N E J U N E /J U LY 2 0 2 1 F 4

29,267.2

—

148,664.8

190,989.4

D AV I D R Y D E R — G E T T Y I M A G E S

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

80–130

500

REVENUES

PROFITS

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

% change from 2019

$ millions

Rank

% change from 2019

$ millions

Rank

82 ORACLE Austin, Texas 9

39,068.0

(1.1)

10,135.0

(8.6)

115,438.0

12,074.0 168

59 ENERGY TRANSFER Dallas, Texas P

38,954.0

(28.1)

(648.0)

444

(118.0)

95,144.0

18,529.0 108

RANK 2020 2019

$ millions Rank

78 DOW Midland, Mich.

38,542.0

(10.3)

1,225.0

171

—

61,470.0

138

12,435.0

67 AMERICAN EXPRESS New York, N.Y.

38,185.0

(18.8)

3,135.0

(53.6)

191,367.0

22,984.0

83 GENERAL DYNAMICS Reston, Va.

37,925.0

(3.6)

3,167.0

(9.1)

51,308.0

155

15,661.0

129

161

85 NIKE Beaverton, Ore. 9

37,403.0

(4.4)

2,539.0

103

(37.0)

31,342.0

215

96 NORTHROP GRUMMAN Falls Church, Va.

36,799.0

8.7

3,189.0

41.9

44,469.0

176

10,579.0

94 UNITED SERVICES AUTOMOBILE ASSN. San Antonio, Texas 18

36,296.2

1.9

3,906.9

(2.5)

200,348.4

40,262.4

84 DEERE Moline, Ill. 12

35,540.0

(9.5)

2,751.0

(15.4)

75,091.0

108

12,937.0

156

8,055.0 228 191

104 ABBOTT LABORATORIES Abbott Park, Ill.

34,608.0

8.5

4,495.0

21.9

72,548.0

113

32,784.0

102 NORTHWESTERN MUTUAL Milwaukee, Wis.

33,782.1

4.6

425.0

303

(66.5)

308,767.0

24,957.0

112 DOLLAR GENERAL Goodlettsville, Tenn. 1

33,746.8

21.6

2,655.1

101

55.0

25,862.6

242

95 EXELON Chicago, Ill.

33,039.0

(4.1)

1,963.0

127

(33.1)

129,317.0

32,585.0

88 COCA-COLA Atlanta, Ga.

33,014.0

(11.4)

7,747.0

(13.2)

87,296.0

19,299.0

101

92 HONEYWELL INTERNATIONAL Charlotte, N.C.

32,637.0

(11.1)

4,779.0

(22.2)

64,586.0

128

17,549.0

117

119 THERMO FISHER SCIENTIFIC Waltham, Mass.

32,218.0

26.1

6,375.0

72.5

69,052.0

121

34,507.0

103 3M St. Paul, Minn.

32,184.0

0.1

5,384.0

17.8

47,344.0

167

12,867.0

158

(23.0)

6,661.2 243

80 TJX Framingham, Mass. 1

32,137.0

90.5

377

(97.2)

30,813.6

216

5,832.7

271

106 TRAVELERS New York, N.Y.

31,981.0

1.3

2,697.0

2.9

116,764.0

29,201.0

31,643.0

(6.3)

2,714.0

(51.1)

421,602.0

60,204.0

28.3

721.0

244

—

52,148.0

153

22,225.0

(12,567.0) 499

F 5 F O R T U N E J U N E /J U LY 2 0 2 1

DOLLAR GENERAL Bargain-hunting consumers, squeezed by the pandemic, powered the retailer to a robust 21.6% leap in net sales in 2020. But the deep discounter also won new shoppers with its increased focus on fresh food. While Dollar General expects a slight pullback this year after its 2020 bonanza, it will speed up the rollout of a new-format store called Popshelf, aimed at more affluent suburban shoppers. —Phil Wahba

97 CAPITAL ONE FINANCIAL McLean, Va.

100

124 TESLA Palo Alto, Calif.

31,536.0

101

107 PHILIP MORRIS INTERNATIONAL New York, N.Y.

28,694.0 E

(3.7)

8,056.0

12.1

44,815.0

174

102

110 ARROW ELECTRONICS Centennial, Colo.

28,673.4

(0.8)

584.4

267

—

17,053.9

302

5,089.3 288

103

105 CHS Inver Grove Heights, Minn. C,4

28,406.4

(11.0)

422.4

304

(49.1)

15,993.9

317

8,809.9

104

121 JABIL St. Petersburg, Fla. 4

27,266.4

7.8

53.9

382

(81.2)

14,397.4

331

105

101 ENTERPRISE PRODUCTS PARTNERS Houston, Texas P

106

109 HEWLETT PACKARD ENTERPRISE Houston, Texas 12

27,199.7

(17.0)

26,982.0

(7.4)

3,775.6

214

1,811.4 401

(17.8)

64,106.7

129

24,353.4

(322.0)

426

(130.7)

54,015.0

146

16,049.0

127

107

133 UNITED NATURAL FOODS Providence, R.I. 16

26,742.8 ¶

13.9

(274.1)

423

—

7,587.0

423

108

117 MONDELEZ INTERNATIONAL Chicago, Ill.

26,581.0

2.8

3,555.0

(8.1)

67,810.0

125

27,578.0

109

111 VIACOMCBS New York, N.Y.

26,186.0 ¶

(5.8)

2,422.0

107

(26.8)

52,663.0

151

15,371.0

131

110

122 KRAFT HEINZ Chicago, Ill.

26,185.0

4.8

356.0

319

(81.6)

99,830.0

50,103.0

111

131 DOLLAR TREE Chesapeake, Va. 1

25,509.3

8.0

1,341.9

163

62.3

20,696.0

271

112

135 AMGEN Thousand Oaks, Calif.

25,424.0

8.8

7,264.0

(7.4)

62,948.0

131

113

113 U.S. BANCORP Minneapolis, Minn.

25,241.0

(7.6)

4,959.0

(28.3)

553,905.0

114

168 PERFORMANCE FOOD GROUP Richmond, Va. 5

25,086.3

27.1

(114.1)

408

(168.4)

7,719.7

419

1,144.7 434

7,285.3 236 9,409.0 206 53,095.0

2,010.6 390

115

164 NETFLIX Los Gatos, Calif.

24,996.1

24.0

2,761.4

47.9

39,280.4

188

11,065.2

177

116

140 GILEAD SCIENCES Foster City, Calif.

24,689.0

10.0

123.0

366

(97.7)

68,407.0

123

18,202.0

111

117

130 SYNNEX Fremont, Calif. 21

24,675.6

3.9

529.2

279

5.7

13,468.6

343

4,338.9 302

118

145 ELI LILLY Indianapolis, Ind.

24,539.8

9.9

6,193.7

(25.5)

46,633.1

171

5,641.6

119

217 TRUIST FINANCIAL Charlotte, N.C.

24,427.0

66.6

4,482.0

39.0

509,228.0

70,807.0

120

151 PNC FINANCIAL SERVICES GROUP Pittsburgh, Pa.

24,039.0 ¶

11.2

7,517.0

40.0

466,679.0

54,010.0

121

138 BROADCOM San Jose, Calif. 12

23,888.0

5.7

2,960.0

8.7

75,933.0

107

23,874.0

122

128 CBRE GROUP Dallas, Texas

23,826.2

(0.3)

752.0

238

(41.4)

18,039.1

292

123

89 MASSACHUSETTS MUTUAL LIFE INSURANCE Springfield, Mass.

23,663.1

(36.5)

(100.5)

406

(102.7)

322,936.3

124

126 QUALCOMM San Diego, Calif. 2

23,531.0

(3.1)

5,198.0

18.5

35,594.0

199

277

7,078.3 239 24,327.4

6,077.0 258

125

114 STARBUCKS Seattle, Wash. 2

23,518.0

(11.3)

928.3

207

(74.2)

29,374.5

223

126

123 DUKE ENERGY Charlotte, N.C.

23,453.0 E

(4.9)

1,377.0

158

(63.3)

162,388.0

47,964.0

127

98 PLAINS GP HOLDINGS Houston, Texas P

23,290.0

(30.8)

(568.0)

437

(271.6)

25,951.0

241

1,464.0

419

(7,805.1) 496

128

116 US FOODS HOLDING Rosemont, Ill.

22,885.0

(11.8)

(226.0)

420

(158.7)

12,423.0

356

4,049.0 305

129

147 LENNAR Miami, Fla. 21

22,488.9

1.0

2,465.0

106

33.3

29,935.2

220

17,994.9

114

130

161 DANAHER Washington, D.C. 22

22,284.0

8.6

3,646.0

21.2

76,161.0

106

39,766.0

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

FORTUNE 500

Customers wait outside a Dollar General store in Loxley, Ala.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21

$ millions

Rank

Assets % Rank

2020 $

% change from 2019

2010–2020 annual growth rate % Rank 9.8

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

202,337.7

25.9

8.8

83.9

3.08

3.7

24.2

126

9.0

268

20,754.7

257

(1.7)

419

(0.7)

413

(3.5)

402

(0.24)

(117.6)

—

(45.0)

460

2.3

356

47,649.7

143

3.2

311

2.0

295

9.9

259

1.64

—

8.8

227

—

113,635.8

8.2

190

1.6

306

13.6

194

3.77

(52.8)

1.2

246

(1.3)

308

12.5

193

51,481.9

131

8.4

189

6.2

136

20.2

136

11.00

(8.2)

4.9

201

(13.2)

387

10.2

243

209,499.8

6.8

219

8.1

31.5

1.60

(35.7)

5.2

195

41.3

22.2

53,956.7

129

8.7

180

7.2

113

30.1

19.03

43.9

10.8

110

(9.8)

366

20.5

—

129

—

10.8

147

2.0

297

9.7

263

—

117,270.0

7.7

201

3.7

222

21.3

126

8.69

(14.4)

7.2

163

58.0

14.9

143

212,300.1

13.0

115

6.2

132

13.7

192

2.50

21.4

(1.7)

265

27.9

102

19.6

1.3

362

0.1

386

1.7

366

—

48,479.7

137

7.9

198

10.3

39.9

10.62

59.9

19.3

35.8

22.0

42,723.5

150

5.9

235

1.5

311

6.0

319

2.01

(33.2)

(6.3)

282

(3.8)

328

4.3

339

227,143.8

23.5

8.9

40.1

1.79

(13.5)

(3.4)

272

2.6

279

8.6

276

150,972.4

14.6

7.4

108

27.2

6.72

(20.1)

10.0

124

22.7

132

17.9

179,719.4

19.8

9.2

18.5

150

15.96

74.0

20.2

43.7

24.2

111,642.1

16.7

11.4

41.8

9.25

18.4

5.1

197

2.9

276

10.2

238

79,774.9

0.3

386

0.3

376

1.6

367

0.07

(97.4)

(21.9)

305

12.3

202

21.4

37,933.0

172

8.4

185

2.3

284

9.2

270

10.52

6.0

4.7

205

5.6

260

12.4

194

58,097.0

120

8.6

181

0.6

357

4.5

337

5.18

(53.1)

(1.5)

264

641,115.0

2.3

336

1.4

319

3.2

349

0.64

—

138,302.4

28.1

18.0

—

5.16

11.9

2.8

8,267.5

367

2.0

343

3.4

232

11.5

227

7.43

—

6.4

1.5

357

2.6

269

4.8

334

—

376

0.2

387

0.4

370

3.0

351

0.35

— 7,833.2

316

10.4

233

63.0

100

225

3.3

272

8.4

279

101

179

14.8

180

11.0

221

102

—

103

(7.7)

287

3.8

269

9.2

264

104

(23.9)

430

5.3

329

105

(21.9)

423

—

106

48,038.8

141

13.9

104

5.9

147

15.5

172

1.71

(18.2)

11.5

259

(1.2)

413

(0.6)

411

(2.0)

392

(0.25)

(132.5)

—

1,854.4

456

(1.0)

409

(3.6) 449

82,651.1

13.4

28,853.2

217

9.2

172

48,924.7

135

1.4

358

26,717.4

224

5.3

255

143,704.3

28.6

83,107.4

19.6

7,705.3

377

(0.5)

399

231,040.7

11.0

81,372.8

0.5

5,874.5

403

2.1

179,158.9

25.2

111

(2.7) 743.4

(80.7)

20,480.0

—

(23.9)

445

(5.10)

—

165

12.9

201

2.47

(6.8)

0.3

256

4.6

184

15.8

169

3.92

(26.9)

14.2

0.4

372

0.7

374

0.29

(81.6)

—

6.5

128

18.4

152

5.65

62.8

13.8

11.5

77.2

12.31

(4.4)

0.9

5.2

—

82.3

(8.0)

391

107

8.4

231

13.4

174

108

274

109

110

(7.3)

349

8.6

13.9

190

—

14.9

179

14.4

155

111

9.9

127

(1.9)

312

18.0

112

185

(18.1)

410

8.3

281

(7.5)

353

—

35.9

115

344

14.4

157

116

341

9.3

268

3.06

(26.4)

5.9

(1.5) 432

(5.7)

417

(1.01)

(163.5)

—

145

7.0

118

25.0

109

6.08

47.2

30.5

378

0.2

382

0.7

375

0.10

(97.6)

(24.5)

306

(6.6)

340

3.9

209

12.2

215

10.21

4.8

11.0

107

29.7

19.0

117

13.3

109.8

6.79

(23.6)

4.0

213

31.0

20.7

118

67.1

113

114

18.3

0.9

342

6.3

314

3.08

(17.0)

10.3

123

(11.3)

377

9.4

259

119

74,377.4

100

31.3

1.6

308

13.9

188

16.96

48.9

11.4

(2.9)

319

12.2

200

120

189,313.5

12.4

124

3.9

210

12.4

212

6.33

(1.6)

14.1

44.3

34.4

121

26,549.1

227

3.2

312

4.2

196

10.6

244

2.22

(41.1)

13.4

2.3

285

11.8

206

122

(0.4)

397

(0.0) 393

(0.4)

382

—

123

22.1

14.6

85.5

4.52

15.1

141

124

128,643.6

3.9

297

3.2

244

—

0.79

74,252.5

101

5.9

237

0.8

344

2.9

357

1.72

150,622.2

—

25.9

8.7

140

77.3

—

(72.9)

2.5

233

24.1

127

22.9

125

(66.0)

(5.4)

277

5.0

262

10.3

235

126

1,824.5

457

(2.4)

430

(2.2) 438

(38.8)

452

(3.07)

(256.6)

—

(51.4)

464

—

127

8,427.5

365

(1.0)

406

(1.8) 435

(5.6)

415

(1.15)

(165.7)

—

(20.5)

418

—

128

30,893.2

206

11.0

146

8.2

13.7

193

7.85

36.8

31.7

38.0

15.8

123

129

160,497.2

16.4

4.8

179

9.2

271

4.89

20.7

6.4

180

45.3

20.4

130

F O R T U N E J U N E /J U LY 2 0 2 1 F 6

78,408.5

— WILLIAM WIDMER—REDUX

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

131–181

500

134

REVENUES

PROFITS

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

% change from 2019

$ millions

Rank

% change from 2019

$ millions

Rank

131

146 AFLAC Columbus, Ga.

22,147.0

(0.7)

4,778.0

44.6

165,086.0

132

150 RITE AID Camp Hill, Pa. 10

21,928.4 ¶

1.2

(452.2)

435

—

9,452.4

393

RANK 2020 2019

$ millions Rank 33,559.0

674.5 456

133

137 VISA San Francisco, Calif. 2

21,846.0

(4.9)

10,866.0

(10.0)

80,919.0

100

36,210.0

134

182 PAYPAL HOLDINGS San Jose, Calif.

21,454.0

20.7

4,202.0

70.9

70,379.0

119

20,019.0

135

134 MICRON TECHNOLOGY Boise, Idaho 4

21,435.0

(8.4)

2,687.0

100

(57.4)

53,678.0

149

38,996.0

136

173 CARMAX Richmond, Va. 10

21,424.1

11.9

888.4

214

5.5

21,082.2

270

3,768.9

316

41,493.0

137

190 SALESFORCE.COM San Francisco, Calif. 1

21,252.0

24.3

4,072.0

3,131.7

66,301.0

127

138

167 ALTRIA GROUP Richmond, Va.

20,841.0 E

5.3

4,467.0

—

47,414.0

166

2,839.0 356

139

143 LUMEN TECHNOLOGIES Monroe, La. 23

20,712.0

(7.5)

(1,232.0)

463

—

59,394.0

141

11,162.0

176

140

129 BAKER HUGHES Houston, Texas

20,705.0

(13.1)

(9,940.0)

496

(7,865.6)

38,007.0

192

12,893.0

157

141

144 INTERNATIONAL PAPER Memphis, Tenn.

20,580.0

(8.0)

482.0

291

(60.7)

31,718.0

214

142

160 HARTFORD FINANCIAL SERVICES GROUP Hartford, Conn.

20,523.0

(1.0)

1,737.0

138

(16.7)

74,111.0

110

143

136 PENSKE AUTOMOTIVE GROUP Bloomfield Hills, Mich.

20,443.9

(11.8)

543.6

275

24.7

13,247.2

347

(2,951.0)

479

(692.6)

70,904.0

116

316

(15.2)

9,887.2

388

144

152 DUPONT Wilmington, Del.

20,397.0

(5.2)

145

154 AUTONATION Fort Lauderdale, Fla.

20,390.0

(4.4)

381.6

146

153 SOUTHERN Atlanta, Ga.

20,375.0

(4.9)

3,119.0

(34.2)

122,935.0

20,358.3

(44.7)

109.6

372

(38.7)

4,500.3

472

147

F 7 F O R T U N E J U N E /J U LY 2 0 2 1

PAYPAL The booming business of digital payments got a pandemic boost in 2020, propelling PayPal to the strongest year in its history. It reported 72.7 million net new accounts, total payment volume of $936 billion, revenue growth of 20.7%, and a 70.9% jump in profits. In addition, the company recently added the ability for users to buy, sell, and hold cryptocurrencies in the PayPal-owned Venmo app. —Lee Cliﬀord

91 WORLD FUEL SERVICES Miami, Fla.

7,854.0 230 18,556.0

107

3,302.5 333 38,504.0

3,235.7 339 27,972.0

1,909.3 394

148

183 D.R. HORTON Arlington, Texas 2

20,311.1

15.5

2,373.7

109

46.7

18,912.3

286

11,840.0

171

149

139 NUCOR Charlotte, N.C.

20,139.7

(10.8)

721.5

243

(43.2)

20,125.4

276

10,788.7

185

150

132 CUMMINS Columbus, Ind.

19,811.0

(16.0)

1,789.0

133

(20.8)

22,624.0

263

8,062.0 226

151

127 NGL ENERGY PARTNERS Tulsa, Okla. P,3

19,770.9 ¶

(17.9)

(397.0)

431

(210.3)

6,498.7

440

2,200.0 383

152

155 DXC TECHNOLOGY Tysons, Va. 3,24

19,577.0

(7.6)

(5,369.0)

487

(527.1)

26,006.0

240

4,785.0 293

153

149 UNION PACIFIC Omaha, Neb.

19,533.0

(10.0)

5,349.0

(9.6)

62,398.0

135

16,958.0 120

154

162 WHIRLPOOL Benton Harbor, Mich.

19,456.0

(4.7)

1,081.0

190

(8.7)

20,350.0

274

3,799.0

155

193 MOLINA HEALTHCARE Long Beach, Calif.

19,423.0

15.4

673.0

255

(8.7)

9,532.0

391

2,096.0 386

156

93 CONOCOPHILLIPS Houston, Texas 25

19,256.0

(47.5)

(2,701.0)

476

(137.6)

62,618.0

133

157

156 MCDONALD’S Chicago, Ill.

19,207.8

(8.9)

4,730.5

(21.5)

52,626.8

152

29,849.0

313 63

(7,824.9) 497

158

175 KIMBERLY-CLARK Irving, Texas

19,140.0

3.7

2,352.0

111

9.0

17,523.0

300

626.0 459

159

118 PACCAR Bellevue, Wash.

18,728.5

(26.8)

1,298.4

165

(45.6)

28,260.0

230

10,390.0 196

160

189 PG&E San Francisco, Calif.

18,469.0

7.8

(1,318.0)

467

—

97,856.0

21,001.0

161

178 CDW Lincolnshire, Ill.

18,467.5

2.4

788.5

230

7.0

9,344.7

394

1,297.1

429

162

180 SHERWIN-WILLIAMS Cleveland, Ohio

18,361.7

2.6

2,030.4

120

31.7

20,401.6

273

3,610.8

319

163

250 L3HARRIS TECHNOLOGIES Melbourne, Fla.

18,194.0

41.5

1,119.0

185

(16.1)

36,960.0

196

20,724.0

164

120 MACY’S New York, N.Y. 1

18,097.0

(28.6)

(3,944.0)

484

(799.3)

17,706.0

298

165

158 MANPOWERGROUP Milwaukee, Wis.

18,001.0

(13.7)

23.8

388

(94.9)

9,328.2

395

166

172 NEXTERA ENERGY Juno Beach, Fla.

17,997.0

(6.3)

2,919.0

(22.6)

127,684.0

167

174 TENET HEALTHCARE Dallas, Texas

17,640.0

(4.5)

399.0

311

—

27,106.0

237

2,553.0 373 2,441.0 375 36,513.0

28.0 476

168

169 AVNET Phoenix, Ariz. 5

17,634.3

(9.7)

(31.1)

396

(117.6)

8,105.2

411

3,726.4

169

192 GENERAL MILLS Minneapolis, Minn. 9

17,626.6

4.5

2,181.2

116

24.4

30,806.7

217

8,058.5 227

170

177 WESTROCK Atlanta, Ga. 2

17,578.8

(3.9)

(690.9)

451

(180.1)

28,779.7

227

171

•

17,456.0

—

1,982.0

125

—

25,093.0

247

CARRIER GLOBAL Palm Beach Gardens, Fla. 26

10,630.6

317 189

6,252.0 252

172

188 LINCOLN NATIONAL Radnor, Pa.

17,439.0

1.0

499.0

287

(43.7)

365,948.0

22,699.0

173

171 GENUINE PARTS Atlanta, Ga.

17,384.4 ¶

(10.4)

(29.1)

394

(104.7)

13,440.2

344

3,204.8

341

(6,867.0) 495

17,337.0

(62.1)

(8,885.0)

493

(627.0)

62,008.0

136

175

195 MARSH & MCLENNAN New York, N.Y.

17,224.0

3.4

2,016.0

121

15.7

33,049.0

212

176

218 APPLIED MATERIALS Santa Clara, Calif. 12

17,202.0

17.8

3,619.0

33.7

22,353.0

264

10,578.0

177

187 BECTON DICKINSON Franklin Lakes, N.J. 2

17,117.0

(1.0)

874.0

216

(29.1)

54,012.0

147

23,763.0

178

68 DELTA AIR LINES Atlanta, Ga.

17,095.0

(63.6)

(12,385.0)

498

(359.8)

71,996.0

114

1,534.0

416

174

70 AMERICAN AIRLINES GROUP Fort Worth, Texas

9,104.0 210 192

179

166 LEAR Southfield, Mich.

17,045.5

(14.0)

158.5

361

(79.0)

13,198.6

348

180

159 BANK OF NEW YORK MELLON New York, N.Y.

16,940.0

(18.6)

3,617.0

(18.6)

469,633.0

45,801.0

181

176 EMERSON ELECTRIC St. Louis, Mo. 2

16,785.0

(8.6)

1,965.0

126

(14.8)

22,882.0

260

8,405.0

221

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

4,467.3 299

FORTUNE 500

A customer views the PayPal home screen. The company has nearly 400 million active users.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21

Rank

Assets % Rank 2.9

2020 $

% change from 2019

2010–2020 annual growth rate % Rank

2020 % Rank

50.6

10.4

(13.6)

389

7.3

301

131

—

2.3

286

(1.1)

380

132

35,191.4

185

21.6

1,129.9

466

(2.1)

426

452,525.4

49.7

284,408.3

19.6

98,678.0

12.5

121

5.0

21,562.7

251

4.1

288

4.2

195,132.3

19.2

6.1

95,090.6

21.4

9.4

14,642.9

306

(5.9)

454

(2.1)

436

(11.0)

433

(1.14)

—

(18.5)

22,494.8

246

(48.0)

495

(26.2) 499

(77.1)

468

(14.73)

(6,504.3)

—

(15.4)

2010–2020 annual rate % Rank

Industry table RANK number 2020

14.2

183

6.67

(4.8) 455

(67.0)

466

(8.50)

13.4

30.0

—

17.1

167

29.6

6.0

142

21.0

129

3.54

71.0

—

116.5

—

174

6.9

309

2.37

(57.0)

2.5

232

39.8

25.1

135

195

23.6

113

5.33

11.3

15.5

7.7

239

11.5

214

136

137

9.8

261

4.38

2,820.0

43.6

36.8

21.0

137

157.3

2.40

—

2.5

231

(11.1)

375

10.8

225

138

411

(7.1)

390

139

401

(4.3)

386

140

254

119

133

134

21,240.6

253

2.3

335

1.5

310

6.1

316

1.22

(60.3)

(1.9)

266

14.0

189

10.4

234

141

23,863.3

239

8.5

184

2.3

283

9.4

267

4.76

(15.9)

6.7

170

(16.8)

406

8.5

277

142

27.7

19.0

20.2

145

15.5

133

143

13.4

194

5.8

320

144

6,485.5

391

2.7

325

4.1

199

16.5

164

6.74

41,308.1

161

(14.5)

479

(4.2)

452

(7.7)

425

(4.01)

(698.5)

—

7,683.2

378

1.9

347

3.9

212

11.8

220

4.30

(13.5)

11.6

43.5

9.5

256

145

65,678.9

111

15.3

2.5

275

11.2

234

2.93

(34.9)

2.2

236

0.6

292

9.8

251

146

2,222.0

453

0.5

377

2.4

279

5.7

326

1.71

(36.4)

(3.0)

271

(27.2)

435

(0.8)

379

147

32,413.1

197

11.7

132

12.6

20.0

139

6.41

49.4

23.6

32.1

20.5

148

23,975.7

238

3.6

304

3.6

225

6.7

310

2.36

(43.0)

18.8

(2.2)

313

5.1

331

149

37,971.1

171

9.0

175

7.9

22.2

121

12.01

(17.1)

8.6

143

30.6

10.2

240

150

263.5

474

(2.0)

425

(6.1)

466

(18.0)

439

(4.59)

(328.4)

—

(75.0)

466

—

151

7,958.6

374

(27.4)

490

(20.6) 495

(112.2)

470

(20.76)

(564.4)

—

(30.1)

440

—

152

146,948.3

27.4

8.6

31.5

7.88

(6.0)

11.0

108

17.8

161

18.7

153

13,831.7

311

5.6

245

5.3

160

28.5

17.07

(7.5)

7.9

157

26.5

113

10.2

241

154

7.1

116

32.1

13,647.3

315

3.5

307

71,623.4

104

(14.0)

477

167,112.5

24.6

9.0

—

46,999.8

145

12.3

127

13.4

375.7

(4.3) 454

(9.0)

11.23

(2.1)

23.9

428

(2.51)

(139.2)

—

6.31

(19.9)

3.3

6.87

10.1

4.4

(45.6)

11.6

—

32,255.8

198

6.9

216

4.6

185

12.5

211

3.74

23,240.6

244

(7.1)

460

(1.3)

428

(6.3)

420

(1.05)

56.7

27.6

155

(36.0)

451

0.7

373

156

220

11.5

209

14.1

161

157

208

1.1

289

12.0

203

158

14.1

188

7.8

291

159

14.6

182

(10.3)

395

160

(6.5)

343

—

27.0

109

25.6

23,291.8

243

4.3

285

8.4

60.8

5.45

9.2

—

65,837.3

110

11.1

144

10.0

56.2

7.36

33.9

18.0

41,664.1

158

6.2

231

3.0

251

5.4

330

5.19

(34.2)

1.9

240

5,028.1

412

(21.8)

488

(22.3)

497

(154.5)

472

(12.68)

(800.6)

—

5,434.2

408

0.1

389

0.3

379

1.0

372

0.41

(94.7)

—

148,304.9

16.2

2.3

286

8.0

286

1.48

(23.7)

2.2

235

5,536.5

407

2.3

337

1.5

313

1,425.0

3.75

—

(7.5)

286

4,128.4

423

(0.2)

395

(0.4) 404

(0.8)

385

(0.31)

(119.5)

—

37,403.4

174

12.4

125

13,716.1

312

(3.9)

440

36,701.1

177

11.4

136

7.9

11,953.2

332

2.9

316

0.1

7.1

161

162

(2.7)

318

18.0

163

(26.5)

432

(3.9)

385

164

(4.5)

330

5.8

321

165

30.3

23.1

166

5.0

263

4.1

341

167

(14.5)

395

2.0

358

168

27.1

3.56

22.8

4.7

13.5

193

8.7

273

169

(6.5)

422

(2.67)

(180.2)

—

4.6

264

8.8

271

170

31.7

2.25

—

387

2.2

361

2.56

(41.6)

0.1

387

(0.20)

(104.7)

—

(18.36)

(584.4)

— 130

6.7

115

(2.4) 443

16,691.8

290

(0.2)

394

(0.2) 398

(0.9)

15,328.8

298

(51.2)

496

(14.3) 490

—

62,054.9

115

11.7

130

6.1

122,599.5

21.0

70,649.7

105

5.1

260

30,809.7

208

(72.4)

498

10,895.8

345

0.9

367

1.2

327

3.5

41,471.0

159

21.4

0.8

349

7.9

54,134.7

127

11.7

129

8.6

23.4

140

22.1

122

3.94

16.2

1.6

307

34.2

3.7

343

(17.2)

491

477

(807.4)

204

257

(11.1)

—

171

376

8.1

287

172

(1.9)

311

10.2

244

173

(44.8)

458

—

250

18.1

174

175 176

15.5

9.8

3.92

37.1

18.8

43.4

22.3

2.71

(31.2)

(6.8)

284

(6.8)

345

13.4

175

177

(19.49)

(367.0)

—

(30.4)

442

13.7

171

178

345

2.62

(79.5)

(4.3)

274

17.4

164

13.9

167

179

291

3.83

(15.1)

6.4

177

(13.0)

384

5.6

323

180

115

3.24

(12.7)

1.3

245

8.6

228

6.7

306

181

F O R T U N E J U N E /J U LY 2 0 2 1 F 8

C O U R T E S Y O F PAY PA L

$ millions

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

182–232

500

194

REVENUES

PROFITS

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

% change from 2019

$ millions

Rank

% change from 2019

$ millions

Rank

182

198 WESTERN DIGITAL San Jose, Calif. 5

16,736.0

1.0

(250.0)

421

—

25,662.0

243

9,551.0 204

183

148 OCCIDENTAL PETROLEUM Houston, Texas

16,680.0 ¶

(24.1)

(14,831.0)

499

—

80,064.0

103

18,573.0 106

184

292 NVIDIA Santa Clara, Calif. 1

16,675.0

52.7

4,332.0

54.9

28,791.0

226

16,893.0

121

16,652.0

(0.8)

1,392.0

155

(24.4)

16,923.0

306

10,836.0

183

RANK 2020 2019

185 194

COGNIZANT TECHNOLOGY SOLUTIONS Teaneck, N.J.

$ millions Rank

186

179 JONES LANG LASALLE Chicago, Ill.

16,589.9

(7.7)

402.5

310

(24.8)

14,316.5

333

5,520.8 278

187

170 SYNCHRONY FINANCIAL Stamford, Conn.

16,472.0

(15.4)

1,385.0

157

(63.0)

95,948.0

12,701.0 160

188

203 COLGATE-PALMOLIVE New York, N.Y.

16,471.0

5.0

2,695.0

13.9

15,920.0

318

743.0 453

189

163 AECOM Los Angeles, Calif. 2

16,390.8 ¶

(18.8)

(186.4)

416

—

12,999.0

349

3,292.6 335

190

196 XPO LOGISTICS Greenwich, Conn.

16,252.0

(2.4)

110.0

371

(73.7)

16,169.0

313

2,709.0 362

191

208 C.H. ROBINSON WORLDWIDE Eden Prairie, Minn.

16,207.1

5.9

506.4

284

(12.2)

5,144.3

463

192

219 BLACKROCK New York, N.Y.

16,205.0

11.5

4,932.0

10.2

176,982.0

35,283.0

193

197 DOMINION ENERGY Richmond, Va.

16,128.0 ¶

(2.7)

(401.0)

432

(129.5)

95,905.0

26,117.0

194 195

•

ROCKET COMPANIES Detroit, Mich. 27

165 KOHL’S Menomonee Falls, Wis. 1

1,879.9 398

15,980.7

204.3

198.0

351

—

37,534.6

194

490.5 464

15,955.0

(20.1)

(163.0)

413

(123.6)

15,337.0

323

5,196.0 282

196

181 FLUOR Irving, Texas

15,884.2 ¶

(9.6)

(435.0)

434

—

7,309.8

429

197

251 DISH NETWORK Englewood, Colo.

15,493.4

21.0

1,762.7

136

25.9

38,239.9

191

198

243 BJ’S WHOLESALE CLUB Westborough, Mass. 1

15,430.0

17.0

421.0

305

124.9

5,411.5

461

199

185 TENNECO Lake Forest, Ill.

200

F 9 F O R T U N E J U N E /J U LY 2 0 2 1

ROCKET COMPANIES This fintech dynamo blasts onto our list for the first time. Rocket Companies (parent of Rocket Mortgage, formerly known as Quicken Loans) launched an August 2020 IPO and saw revenues rise a scintillating 204% in 2020. The company’s online loan approval process— which can take as little as eight minutes—has proved especially popular among real estate–crazed pandemic shoppers. —L.C.

1,030.2 438 13,780.2

146

319.3 469

15,379.0

(11.9)

(1,521.0)

471

—

11,852.0

367

(119.0) 479

76 UNITED AIRLINES HOLDINGS Chicago, Ill.

15,355.0

(64.5)

(7,069.0)

492

(334.9)

59,548.0

140

5,960.0 265

201

191 MASTERCARD Purchase, N.Y.

15,301.0

(9.4)

6,411.0

(21.0)

33,584.0

208

6,391.0 249

202

207 WASTE MANAGEMENT Houston, Texas

15,218.0

(1.5)

1,496.0

147

(10.4)

29,345.0

224

7,452.0 235

203

125 PBF ENERGY Parsippany, N.J.

15,115.9 E

(38.3)

(1,392.4)

468

(535.9)

10,499.8

383

1,642.8

411

204

204 AMERICAN ELECTRIC POWER Columbus, Ohio

14,918.5

(4.1)

2,200.1

114

14.5

80,757.2

101

20,550.9

14,852.0

45.8

958.0

200

7.3

74,619.0

109

32,330.0

14,741.7

(9.1)

1,395.8

154

0.1

296,627.7

16,558.9

122

205

311 FISERV Brookfield, Wis.

206

201 PRINCIPAL FINANCIAL Des Moines, Iowa

207

225 REINSURANCE GROUP OF AMERICA Chesterfield, Mo.

14,596.0

2.1

415.0

306

(52.3)

84,656.0

14,352.0

142

208

227 AUTOMATIC DATA PROCESSING Roseland, N.J. 5

14,589.8

2.9

2,466.5

105

7.6

39,165.5

189

5,752.2

274

209

220 STANLEY BLACK & DECKER New Britain, Conn.

14,534.6

0.6

1,233.8

170

29.1

23,566.3

256

11,059.6

178

210

222 TEXAS INSTRUMENTS Dallas, Texas

14,461.0

0.5

5,595.0

11.5

19,351.0

282

9,187.0 209

211

142 HALLIBURTON Houston, Texas

14,445.0

(35.5)

(2,945.0)

478

—

20,680.0

272

212

214 STRYKER Kalamazoo, Mich.

14,351.0

(3.6)

1,599.0

144

(23.2)

34,330.0

205

213

215 ESTÉE LAUDER New York, N.Y. 5

14,294.0

(3.8)

684.0

250

(61.7)

17,781.0

297

214

234 CORTEVA Wilmington, Del.

14,217.0

2.7

681.0

252

—

42,649.0

182

24,824.0

215

221 FREEPORT-MCMORAN Phoenix, Ariz.

14,198.0

(1.4)

599.0

264

—

42,144.0

183

10,174.0

197

3,598.0 320

4,974.0 289 13,084.0

154

3,935.0 306

216

239 QURATE RETAIL Englewood, Colo.

14,177.0

5.3

1,204.0

180

—

16,999.0

303

217

348 WAYFAIR Boston, Mass.

14,145.2

55.0

185.0

354

—

4,569.9

471

(1,191.9) 488

218

274 LABORATORY CORP. OF AMERICA Burlington, N.C.

13,978.5

21.0

1,556.1

145

88.9

20,071.7

277

9,359.7 208

219

232 LAND O’LAKES Arden Hills, Minn. C

13,948.9

0.4

264.9

337

28.7

9,186.0

398

2,947.9

220

209 PPG INDUSTRIES Pittsburgh, Pa.

13,834.0

(8.7)

1,059.0

192

(14.8)

19,556.0

281

5,689.0 275 2,614.0 370

351

221

199 GAP San Francisco, Calif. 1

13,800.0

(15.8)

(665.0)

446

(289.5)

13,769.0

338

222

237 KELLOGG Battle Creek, Mich.

13,770.0

1.4

1,251.0

169

30.3

17,996.0

293

3,112.0 343

223

224 PARKER-HANNIFIN Cleveland, Ohio 5

13,695.5

(4.4)

1,206.3

178

(20.2)

19,738.2

280

6,114.0 257

224

240 CORE-MARK HOLDING Westlake, Texas

13,617.1 E

2.2

63.2

380

9.5

1,954.7

498

225

206 JACOBS ENGINEERING GROUP Dallas, Texas 2

13,578.2 ¶

(12.2)

491.8

289

(42.0)

12,354.4

360

226

259 EDISON INTERNATIONAL Rosemead, Calif.

13,578.0

10.0

739.0

241

(42.4)

69,372.0

120

227

238 GUARDIAN LIFE INS. CO. OF AMERICA New York, N.Y.

13,561.5

0.6

23.5

389

(96.5)

85,424.7

7,759.7

231

228

223 BIOGEN Cambridge, Mass.

13,444.6

(6.5)

4,000.6

(32.1)

24,618.9

251

10,700.3

186

229

211 OMNICOM GROUP New York, N.Y.

13,171.1

(11.9)

945.4

203

(29.4)

27,647.2

233

230

266 UNUM GROUP Chattanooga, Tenn.

13,162.1

9.7

793.0

229

(27.9)

70,625.8

117

231

252 LITHIA MOTORS Medford, Ore.

13,124.3

3.6

470.3

294

73.2

7,902.1

413

232

254 AMERICAN FAMILY INSURANCE GROUP Madison, Wis. 18

13,074.5

3.5

403.2

309

(11.6)

33,941.8

207

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

631.9 458 5,815.7

272

14,048.0 144

3,084.4 345 10,871.0

182

2,661.5 366 10,579.1

190

FORTUNE 500

Rocket founder and chairman Dan Gilbert also owns the NBA’s Cleveland Cavaliers and operates the team’s home arena.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21 Assets % Rank

$ millions

Rank

20,432.0

260

(1.5)

418

24,848.7

233

(88.9)

499

331,036.6

26.0

15.0

41,451.6

160

8.4

188

8.2

9,150.9

358

2.4

332

2.8

257

(1.0)

2020 $

% change from 2019

2010–2020 annual growth rate % Rank

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

416

(2.6)

396

(0.84)

—

(11.1)

374

7.3

300

182

(18.5) 493

(79.9)

469

(17.06)

—

(57.2)

465

(12.6)

400

183

25.6

108

6.90

52.7

32.0

122.3

43.4

184

12.8

204

2.57

(21.9)

8.0

153

34.0

8.8

270

185

7.3

301

7.70

(29.2)

8.3

150

(14.8)

398

6.3

311

186

(0.1)

296

—

187

215

27.1

108

10.4

231

188

23,740.6

242

8.4

186

1.4

317

10.9

237

2.27

(59.2)

—

66,810.3

109

16.4

16.9

362.7

3.14

14.2

3.8

9,469.8

355

(1.1)

411

(1.4)

431

(5.7)

416

(1.16)

—

15.4

178

5.9

318

189

12,601.7

326

0.7

373

0.7

354

4.1

340

0.78

(78.2)

2.7

230

49.6

27.8

190

12,514.9

327

3.1

313

9.8

26.9

101

3.72

(11.2)

4.8

203

22.4

133

3.9

345

191

115,079.8

30.4

2.8

260

14.0

187

31.85

12.0

11.7

47.8

17.4

104

192

61,224.0

117

(2.5)

431

(0.4) 405

(1.5)

389

(0.57)

(135.2)

—

(5.0)

333

10.2

242

193

45,821.0

146

1.2

363

0.5

363

40.4

1.76

—

194

—

9,394.1

356

(1.0)

408

(1.1)

421

(3.1)

399

(1.06)

(124.3)

—

(15.8)

402

0.8

372

195

3,252.4

438

(2.7)

433

(6.0) 464

(42.2)

454

(3.10)

—

(13.6)

390

(11.9)

398

196

19,048.2

269

11.4

135

4.6

183

12.8

205

3.02

16.2

3.2

(8.8)

361

6.2

313

6,156.5

397

2.7

323

7.8

100

131.8

3.03

124.4

—

63.9

—

875.7

468

(9.9)

468

(12.8)

487

—

(18.69)

—

(19.1)

412

(12.3)

399

199

18,325.1

274

(46.0)

494

(11.9) 486

(118.6)

471

(25.30)

(318.5)

—

(50.9)

463

6.1

314

200

221

197

198

353,686.7

41.9

19.1

100.3

6.37

(19.8)

16.3

20.1

146

32.6

201

54,451.7

126

9.8

162

5.1

170

20.1

138

3.52

(10.0)

5.9

184

5.6

259

15.6

131

202

1,699.5

461

(9.2)

465

(13.3) 488

100.0

(11.64)

(540.9)

—

42,067.3

156

14.7

10.7

242

4.42

13.9

5.7

79,692.5

6.5

226

1.3

324

3.0

353

1.40

(18.1)

5.5

16,345.9

293

9.5

167

0.5

369

8.4

282

5.05

1.8

9.4

2.7

263

(76.6)

467

—

(8.9)

362

13.0

191

(1.5)

309

22.8

205

135

(4.5)

331

7.9

289

206

186

181

203

204

8,568.0

362

2.8

318

0.5

366

2.9

356

6.31

(53.7)

(2.0)

267

(27.0)

434

9.7

252

207

80,653.9

16.9

6.3

129

42.9

5.70

8.8

9.0

138

6.0

255

18.7

208

32,152.4

199

8.5

183

5.2

166

11.2

233

7.77

22.4

19.4

10.0

217

12.7

191

209

174,439.3

38.7

28.9

60.9

5.97

13.9

8.6

142

31.5

20.6

210

19,070.1

268

(20.4)

485

(14.2) 489

(59.2)

462

(3.34)

—

(19.9)

416

(5.7)

388

211

91,665.1

11.1

140

4.7

181

12.2

214

4.20

(23.4)

2.8

224

18.1

159

18.0

212

105,508.6

4.8

269

3.8

213

17.4

159

1.86

(61.4)

4.6

207

213

34,528.5

189

4.8

268

1.6

309

2.7

358

0.91

—

214

48,027.8

142

4.2

286

1.4

318

5.9

322

0.41

—

(21.4)

4,880.5

414

8.5

182

7.1

114

33.5

2.86

—

1.86

—

15.88

90.2

11.6

304

29.9

22.1

33.3

—

99.2

(5.8)

153.8

—

195

1.3

360

4.0

200

—

232

11.1

141

7.8

101

16.6

163

1.9

346

2.9

255

9.0

276

—

183

7.7

203

5.4

156

18.6

148

4.45

(14.8)

6.8

11,164.9

341

(4.8)

443

(25.4)

447

(1.78)

(291.4)

—

15.7

174

21,544.5

252

9.1

173

7.0

120

40.2

3.63

29.6

1.0

248

(6.8)

346

—

(4.8) 456

149.9

—

20.3

144

8.8

169

10.1

216

15.1

—

389

272

—

215

216

217

218

219

139

220

1.8

363

221

5.3

330

222

40,716.1

162

8.8

178

6.1

138

19.7

142

9.29

(19.1)

10.6

116

34.6

14.3

159

223

1,747.3

460

0.5

380

3.2

241

10.0

256

1.39

11.2

13.6

9.9

220

14.0

163

224

16,816.2

289

3.6

302

4.0

205

8.5

281

3.71

(39.0)

6.6

175

22.3

135

9.4

258

225

22,229.3

247

5.4

251

1.1

332

5.3

332

1.98

(47.5)

(6.4)

283

(13.1)

385

8.3

280

226

0.2

388

0.0

390

0.3

378

—

152

29.8

16.3

37.4

24.80

(17.5)

409

14.8

— 42,615.9

—

(21.1)

20.2

—

— 147

227

228

15,946.2

295

7.2

209

3.4

234

30.7

4.37

(27.9)

4.9

199

(19.6)

414

6.1

315

229

5,669.8

406

6.0

232

1.1

331

7.3

300

3.89

(25.8)

3.7

217

(16.6)

405

2.0

359

230

10,467.0

348

3.6

303

6.0

143

17.7

156

19.53

68.4

43.7

100.8

36.7

3.1

314

1.2

328

3.8

342

—

231

232

F O R T U N E J U N E /J U LY 2 0 2 1 F 1 0

32,644.7 24,890.9 35,603.6

D AV I D L I A M K Y L E — N B A E / G E T T Y I M A G E S

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

233–283

500

236

REVENUES

PROFITS

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

% change from 2019

$ millions

Rank

% change from 2019

$ millions

Rank

233

231 DISCOVER FINANCIAL SERVICES Riverwoods, Ill.

12,953.0

(7.4)

1,141.0

184

(61.4)

112,889.0

10,884.0

181

234

285 ADOBE San Jose, Calif. 21

12,868.0

15.2

5,260.0

78.2

24,284.0

254

13,264.0

151

235

200 ARAMARK Philadelphia, Pa. 2

12,829.6

(20.9)

(461.5)

436

(202.9)

15,712.7

320

2,736.0 360

RANK 2020 2019

OTIS WORLDWIDE Farmington, Conn. 26

—

906.0

209

—

10,710.0

381

(3,832.0) 493

(1,205.1)

462

(177.3)

18,126.0

289

6,166.5 256

12,632.0

6.5

1,733.0

139

14,423.9

330

212 LOEWS New York, N.Y.

12,583.0

(15.7)

(931.0)

455

(199.9)

80,236.0

102

240

229 ILLINOIS TOOL WORKS Glenview, Ill.

12,574.0

(10.9)

2,109.0

117

(16.3)

15,612.0

321

241

303 FIDELITY NATIONAL INFORMATION SERVICES Jacksonville, Fla.

12,552.0

21.5

158.0

362

(47.0)

83,842.0

242

202 ROSS STORES Dublin, Calif. 1

12,531.6

(21.9)

85.4

378

(94.9)

12,717.9

353

•

12,756.0

$ millions Rank

(14.5)

236 237

213 ECOLAB St. Paul, Minn.

12,748.7 ¶

238

268 AUTOZONE Memphis, Tenn. 4

239

7.2

(878.0) 485 17,860.0

116

3,181.0 342 49,300.0

3,290.6 336

243

307 PETER KIEWIT SONS’ Omaha, Neb.

12,463.0

21.2

826.0

222

97.1

6,440.0

441

2,740.0 359

244

333 EQUITABLE HOLDINGS New York, N.Y.

12,415.0

29.4

(648.0)

444

—

275,397.0

15,576.0 130

245

379 WESCO INTERNATIONAL Pittsburgh, Pa. 28

12,326.0

47.5

375

(55.0)

11,880.2

366

246

216 GOODYEAR TIRE & RUBBER Akron, Ohio

12,321.0

(16.4)

(1,254.0)

464

—

16,506.0

311

3,078.0 347 10,094.0 201

100.6

3,343.7

331

247

280 FOX New York, N.Y. 5

12,303.0

8.0

999.0

198

(37.4)

21,750.0

268

248

289 LEIDOS HOLDINGS Reston, Va.

12,297.0

10.8

628.0

261

(5.8)

12,511.0

355

3,862.0 310

249

256 CONSOLIDATED EDISON New York, N.Y.

12,246.0

(2.6)

1,101.0

187

(18.0)

62,895.0

132

18,847.0 104

250

253 DTE ENERGY Detroit, Mich.

12,177.0

(3.9)

1,368.0

159

17.0

45,496.0

173

12,425.0

251

271 CHARLES SCHWAB Westlake, Texas 29

12,109.0

2.7

3,299.0

(10.9)

549,009.0

56,060.0

252

244 STATE STREET Boston, Mass.

12,078.0

(8.0)

2,420.0

108

7.9

314,706.0

26,200.0

253

245 AMERIPRISE FINANCIAL Minneapolis, Minn.

162

11,958.0

(8.7)

1,534.0

146

(19.0)

165,883.0

VIATRIS Canonsburg, Pa. 30

11,946.0

—

(669.9)

447

—

61,553.0

137

22,954.1

255

258 SEMPRA ENERGY San Diego, Calif.

11,940.0 ¶

(4.0)

3,932.0

79.0

66,623.0

126

21,115.0

256

255 FARMERS INSURANCE EXCHANGE Woodland Hills, Calif.

11,869.7

(5.7)

(116.4)

409

(310.5)

17,853.3

296

4,667.4 295

257

248 L BRANDS Columbus, Ohio 1

11,846.9

(8.3)

844.5

219

—

11,571.0

371

(662.0) 484

258

278 W.W. GRAINGER Lake Forest, Ill.

11,797.0

2.7

695.0

249

(18.1)

6,295.0

445

1,828.0 400 (1,625.0) 490

254

F 1 1 F O R T U N E J U N E /J U LY 2 0 2 1

OTIS WORLDWIDE Founded in Yonkers, N.Y., in 1853, Otis moves 2 billion people every day on its elevators and escalators. The company, led by CEO Judy Marks, returns to the Fortune 500 for the first time since 1975 after spinning oﬀ from industrial conglomerate United Technologies (now Raytheon, No. 57) in 2020. Sales descended by nearly 3% to $12.8 billion last year as COVID-19 slowed global construction activity. —Beth Kowitt

•

5,867.0 267

259

241 COMMUNITY HEALTH SYSTEMS Franklin, Tenn.

11,789.0

(10.8)

511.0

282

—

16,006.0

316

260

279 BALL Westminster, Colo.

11,781.0

2.7

585.0

265

3.4

18,252.0

288

3,275.0 337

261

358 BERRY GLOBAL GROUP Evansville, Ind. 2

11,709.0

31.9

559.0

269

38.4

16,701.0

309

2,092.0 387

262

242 KINDER MORGAN Houston, Texas

11,700.0

(11.4)

119.0

369

(94.6)

71,973.0

115

263

233 VF Denver, Colo. 3

11,688.1 ¶

(15.7)

679.4

254

(46.1)

11,133.3

373

3,357.3 329

264

282 BAXTER INTERNATIONAL Deerfield, Ill.

11,673.0

2.7

1,102.0

186

10.1

20,019.0

278

8,689.0

265

236 TEXTRON Providence, R.I.

11,651.0

(14.5)

309.0

329

(62.1)

15,443.0

322

5,845.0 268

266

257 LKQ Chicago, Ill.

11,628.8

(7.0)

638.4

257

18.0

12,360.5

359

5,655.7

276

267

288 KEURIG DR PEPPER Burlington, Mass.

11,618.0

4.5

1,325.0

164

5.7

49,779.0

160

23,829.0

268

314 O’REILLY AUTOMOTIVE Springfield, Mo.

11,604.5

14.3

1,752.3

137

26.0

11,596.6

370

140.3 474

269

272 CROWN HOLDINGS Yardley, Pa.

11,575.0

(0.8)

579.0

268

13.5

16,670.0

310

2,198.0 384

270

281 UNIVERSAL HEALTH SERVICES King of Prussia, Pa.

11,558.9

1.6

944.0

204

15.8

13,476.9

341

6,317.1

271

230 DAVITA Denver, Colo.

11,550.6

(18.1)

773.6

235

(4.6)

16,988.5

304

1,383.6 425

31,436.0

60 217

250

272

276 XCEL ENERGY Minneapolis, Minn.

11,526.0

(0.0)

1,473.0

148

7.4

53,957.0

148

273

328 NEWMONT Denver, Colo.

11,497.0

18.0

2,829.0

0.9

41,369.0

185

14,575.0 140

274

270 VISTRA Irving, Texas 31

11,443.0

(3.1)

636.0

259

(31.5)

25,208.0

245

8,371.0 222 6,001.0 264

23,008.0

275

290 IQVIA HOLDINGS Durham, N.C.

11,359.0

2.4

279.0

336

46.1

24,564.0

252

276

295 EBAY San Jose, Calif.

11,351.0 ¶

5.1

5,667.0

217.3

19,310.0

283

277

277 CORNING Corning, N.Y.

11,303.0

(1.7)

512.0

281

(46.7)

30,775.0

219

13,257.0

152

278

261 QUANTA SERVICES Houston, Texas

11,202.7

(7.5)

445.6

299

10.8

8,398.3

406

4,344.2

301

5,168.4 284

3,561.0 322

279

184 HOLLYFRONTIER Dallas, Texas

11,183.6 E

(36.0)

(601.4)

440

(177.9)

11,506.9

372

280

265 BED BATH & BEYOND Union, N.J. 10

11,158.6

(7.2)

(613.8)

443

—

7,790.5

415

1,764.9 404

281

228 UBER TECHNOLOGIES San Francisco, Calif.

11,139.0

(21.3)

(6,768.0)

491

—

33,252.0

211

12,266.0 164

282 300 MUTUAL OF OMAHA INSURANCE Omaha, Neb. 18 283

334 CONAGRA BRANDS Chicago, Ill. 9

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

11,098.4

6.1

698.1

245

157.2

47,294.0

168

8,818.3

213

11,054.4

15.9

840.1

220

23.9

22,304.0

266

7,876.1

229

FORTUNE 500

This custom-made glass elevator installed by Otis in New York’s Empire State Building serves the 102nd-floor observatory.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21 Assets % Rank

2020 $

% change from 2019

2010–2020 annual growth rate % Rank

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

$ millions

Rank

29,099.7

215

8.8

177

1.0

333

10.5

247

3.60

(60.4)

11.4

100

9.7

221

19.3

233

227,226.9

40.9

21.7

39.7

10.83

80.5

22.1

51.6

32.2

234

9,595.3

353

(3.6)

438

(2.9) 445

(16.9)

437

(1.83)

(202.8)

—

(10.1)

368

—

235

29,418.4

213

7.1

213

8.5

2.08

—

236

— (19.5)

61,240.7

116

(9.5)

466

(6.6) 468

30,946.3

205

13.7

108

12.0

440

—

(4.15)

(177.9)

—

71.93

13.4

17.0

13,698.3

313

(7.4)

461

(1.2)

425

(5.2)

412

(3.32)

(208.1)

—

70,106.7

106

16.8

13.5

66.3

6.63

(14.3)

8.1

48 152

13.2

196

17.0

107

237

(0.5)

302

15.8

124

238

(13.7)

391

2.1

357

239

16.3

171

17.1

106

240

87,336.9

1.3

361

0.2

380

0.3

377

0.25

(62.1)

(14.2)

298

2.8

277

19.6

241

42,750.7

149

0.7

372

0.7

356

2.6

359

0.24

(94.8)

(14.6)

300

5.8

257

23.9

242

6.6

222

12.8

30.1

308

(5.2)

445

(0.2) 400

— 14,207.5

—

(4.2)

406

(1.56)

—

6.8

(70.6)

(4.9)

—

4,340.5

421

0.8

369

0.8

345

3.0

350

1.51

4,099.1

424

(10.2)

469

(7.6)

472

(40.7)

453

(5.35)

275

249

—

243

—

244

32.2

4.0

342

245

(28.7)

438

0.4

374

246

21,022.2

254

8.1

192

4.6

187

9.9

257

1.62

(37.0)

—

(20.0)

417

—

247

13,608.8

316

5.1

259

5.0

173

16.3

165

4.36

(5.2)

(3.9)

273

9.0

225

15.8

128

248

25,613.0

230

9.0

176

1.8

301

5.8

325

3.28

(19.6)

(0.6)

259

(16.8)

407

8.0

288

249

25,792.8

229

11.2

138

3.0

252

11.0

235

7.08

12.2

6.6

174

(3.2)

322

14.4

156

250

122,691.2

27.2

0.6

359

5.9

323

2.12

(20.6)

18.8

13.6

192

13.4

176

251

29,553.6

211

20.0

0.8

350

9.2

269

6.32

17.5

7.4

160

(5.1)

335

6.8

304

252

102

19.8

147

15.7

130

27,103.5

221

12.8

116

0.9

339

26.1

106

12.20

(12.4)

11.3

16,862.9

288

(5.6)

450

(1.1)

423

(2.9)

397

(1.11)

—

40,132.8

164

32.9

5.9

146

18.6

147

12.88

76.7

15.8

405

(0.7)

412

(2.5)

395

—

3.00

—

2.2

237

108.0

7.7

293

257

12.82

(16.3)

6.3

181

22.8

131

13.5

172

258

4.39

—

3.8

214

156.2

(13.2)

402

259

1.76

6.0

3.3

219

45.3

19.6

260

—

(1.0)

17,247.5

283

7.1

212

7.3

109

—

20,985.1

255

5.9

236

11.0

38.0

1,752.4

459

4.3

283

3.2

243

—

27,800.5

220

5.0

265

3.2

242

17.9

154

— 56

(13.2)

— 386

—

12.6

192

—

253

254

255

256

8,221.1

368

4.8

270

3.3

237

26.7

102

4.14

38.0

—

18.3

158

—

261

37,703.1

173

1.0

366

0.2

385

0.4

376

0.05

(94.8)

—

(31.0)

443

—

262

31,305.8

203

5.8

238

6.1

139

20.2

135

1.70

(46.0)

2.8

227

(11.7)

379

18.1

263

42,656.8

151

9.4

169

5.5

153

12.7

207

2.13

10.4

(1.1)

262

(3.0)

320

13.2

178

264

12,726.0

325

2.7

326

2.0

294

5.3

331

1.35

(61.4)

17.0

8.6

229

7.7

296

265

12,801.2

323

5.5

249

5.2

169

11.3

231

2.09

20.1

13.7

(1.3)

307

12.0

204

266

48,367.8

138

11.4

134

2.7

267

5.6

327

0.93

5.7

(8.1)

289

12.9

198

20.9

267

35,460.8

184

15.1

1,249.3

23.53

31.6

23.1

3.3

273

22.3

268

38.1

13,091.9

321

5.0

264

3.5

230

26.3

103

4.30

13.8

8.0

156

11.6

212

269

11,350.6

339

8.2

191

7.0

119

14.9

174

10.99

20.4

16.7

(3.9)

329

12.7

190

270

11,790.0

335

6.7

221

4.6

189

55.9

6.31

19.7

12.3

56.5

12.9

185

271

35,759.0

181

12.8

118

2.7

262

10.1

255

2.79

5.7

5.6

190

7.7

240

14.8

145

272

48,282.7

139

24.6

6.8

125

12.3

213

3.51

(7.9)

(2.6)

269

40.4

1.6

366

273

8,512.0

364

5.6

244

2.5

276

7.6

295

1.30

(30.1)

—

(11.9)

380

—

274

37,034.4

176

2.5

331

1.1

330

4.6

336

1.43

49.0

—

16.0

173

—

275 276

41,670.5

157

49.9

29.3

159.1

7.89

277.5

19.2

41.3

15.9

121

33,466.3

192

4.5

277

1.7

304

3.9

341

0.54

(49.5)

(13.3)

297

27.7

104

9.0

269

277

12,173.4

329

4.0

294

5.3

161

10.3

252

3.07

12.5

15.6

77.8

13.8

168

278

5,811.2

404

(5.4)

446

(5.2) 458

3,533.4

433

(5.5)

449

(7.9)

101,438.0

(60.8)

497

6.3

228

1.5

312

7.6

204

3.8

218

— 18,370.6

273

(11.6)

434

(3.72)

(180.7)

—

(46.4)

461

7.6

298

279

476

(34.8)

451

(4.94)

—

7.1

246

(8.3)

392

280

(20.4) 494

(55.2)

461

(3.86)

—

71.5

—

281

7.9

289

—

282

10.7

243

1.72

13.2

0.6

283

251

8.8

226

10.9

223

F O R T U N E J U N E /J U LY 2 0 2 1 F 1 2

COURTESY OF OTIS WORLDWIDE

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

284–334

500

293

REVENUES

RANK 2020 2019

PROFITS % change from 2019

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

Rank

% change from 2019

$ millions

Rank

1,406.8

153

38.4

12,205.5

362

(36.5)

(604.6)

441

(122.1)

35,804.6

197

20,301.9

(9.9)

286.5

333

64.7

5,089.4

465

1,449.6

421

14,703.0

139

284

309 PULTEGROUP Atlanta, Ga.

11,036.1

8.1

285

186 EOG RESOURCES Houston, Texas

11,032.0

286

264 GROUP 1 AUTOMOTIVE Houston, Texas

10,851.8

287

273 ALLY FINANCIAL Detroit, Mich.

10,780.0

(7.2)

1,085.0

189

(36.7)

182,165.0

288

375 FIDELITY NATIONAL FINANCIAL Jacksonville, Fla.

10,778.0

27.3

1,427.0

151

34.4

50,455.0

158

$ millions Rank 6,570.0 245

8,351.0 223

289

205 NORDSTROM Seattle, Wash. 1

10,715.0

(31.0)

(690.0)

450

(239.1)

9,538.0

390

290

287 DISCOVERY Silver Spring, Md.

10,671.0

(4.2)

1,219.0

174

(41.1)

34,087.0

206

291

380 TRACTOR SUPPLY Brentwood, Tenn.

10,620.4

27.2

749.0

239

33.2

7,049.1

432

1,923.8 393 13,101.0

305.0 470 10,464.0

195

292

267 CSX Jacksonville, Fla.

10,583.0

(11.3)

2,765.0

(17.0)

39,793.0

187

293

157 MARRIOTT INTERNATIONAL Bethesda, Md.

10,571.0

(49.6)

(267.0)

422

(121.0)

24,701.0

250

294

294 FIRSTENERGY Akron, Ohio

10,435.0 ¶,E

(3.8)

1,079.0

191

18.3

44,464.0

177

7,237.0 237

295

312 BORGWARNER Auburn Hills, Mich.

10,165.0

(0.0)

500.0

286

(33.0)

16,029.0

315

6,428.0 247

295

336 JONES FINANCIAL (EDWARD JONES) Des Peres, Mo. P,32

10,165.0

6.7

1,285.0

167

17.7

28,320.0

229

3,589.0

297

305 REPUBLIC SERVICES Phoenix, Ariz.

10,153.6

(1.4)

967.2

199

(9.9)

23,434.0

257

8,483.9 220

(1.8)

403.8

308

(41.9)

7,772.5

416

3,348.2 330

696.1

247

17.9

4,927.5

467

1,388.3

156

11.9

58,239.2

142

493.0

288

1.3

11,839.6

368

298

304 HENRY SCHEIN Melville, N.Y. 33

10,119.1

299

389 EXPEDITORS INTERNATIONAL OF WASHINGTON Seattle, Wash.

10,116.5

23.7

300

293 ENTERGY New Orleans, La.

10,113.6

(7.0)

301

330 ADVANCE AUTO PARTS Raleigh, N.C.

10,106.3

4.1

302

315 ASSURANT New York, N.Y.

10,094.8

0.1

441.8

300

15.5

44,649.9

175

303

269 PACIFIC LIFE Newport Beach, Calif. 18

10,062.0

(15.1)

(671.0)

448

(192.6)

190,672.0

304

331 LAM RESEARCH Fremont, Calif. 5

10,044.7

4.1

113

2.8

14,559.0

328

403

(101.7)

30,777.0

218

301

213.9

33,376.7

210

2,251.8

305

296 BOSTON SCIENTIFIC Marlborough, Mass.

9,913.0

(7.7)

306

327 ALTICE USA Long Island City, N.Y.

9,894.6

1.4

436.2

(82.0)

153

430.0 466

321

2,659.6 368 10,926.1

180

3,559.5 323 5,951.4 266 17,092.0

118

5,172.5 283 15,326.0

133

(1,141.0) 487

307

283 NORFOLK SOUTHERN Norfolk, Va.

9,789.0

(13.3)

2,013.0

122

(26.0)

37,962.0

193

308

301 SONIC AUTOMOTIVE Charlotte, N.C.

9,767.0

(6.6)

(51.4)

397

(135.7)

3,746.0

483

309

448 ADVANCED MICRO DEVICES Santa Clara, Calif.

9,763.0

45.0

2,490.0

104

630.2

8,962.0

401

5,837.0 269

310

247 UNITED STATES STEEL Pittsburgh, Pa.

9,741.0

(24.7)

(1,165.0)

461

—

12,059.0

365

3,786.0

314

311

335 MARKEL Glen Allen, Va.

9,735.1

2.2

816.0

226

(54.4)

41,710.1

184

12,799.8

159

312

297 ODP Boca Raton, Fla. 34

9,710.0

(8.8)

(319.0)

425

(422.2)

5,558.0

459

14,791.0

138

814.8 449

1,880.0 397

313

310 AES Arlington, Va.

9,660.0

(5.2)

46.0

384

(84.8)

34,603.0

202

314

298 MOLSON COORS BEVERAGE Chicago, Ill.

9,654.0 E

(8.7)

(949.0)

456

(492.6)

27,331.1

235

12,365.0

315

346 J.B. HUNT TRANSPORT SERVICES Lowell, Ark.

9,636.6

5.1

506.0

285

(2.0)

5,928.3

450

2,600.1

371

316

349 KKR New York, N.Y.

9,629.7

5.6

2,002.5

123

(0.1)

79,806.5

104

13,716.8

148

2,634.0 369 163

317

337 HORMEL FOODS Austin, Minn. 12

9,608.5

1.2

908.1

208

(7.2)

9,908.3

386

318

317 PUBLIC SERVICE ENTERPRISE GROUP Newark, N.J.

9,603.0

(4.7)

1,905.0

128

12.5

50,050.0

159

319

299 STEEL DYNAMICS Fort Wayne, Ind.

9,601.5

(8.3)

550.8

274

(17.9)

9,265.6

397

320

362 DICK’S SPORTING GOODS Coraopolis, Pa. 1

9,584.0

9.5

530.3

278

78.3

7,752.9

417

2,339.5

321

321 MOHAWK INDUSTRIES Calhoun, Ga.

9,552.2

(4.2)

515.6

280

(30.7)

14,327.8

332

8,534.3

219

322

262 MURPHY USA El Dorado, Ark.

9,504.3 E

(21.5)

386.1

313

149.4

2,685.7

492

784.1

451

SQUARE San Francisco, Calif.

9,497.6

101.5

213.1

347

(43.2)

9,869.6

389

2,681.6 364

410 QUEST DIAGNOSTICS Secaucus, N.J.

9,437.0

22.1

1,431.0

150

66.8

14,026.0

335

6,759.0 242

323 F 1 3 F O R T U N E J U N E /J U LY 2 0 2 1

$ millions

MARRIOTT INTERNATIONAL The pandemic decimated the travel industry in 2020 and Marriott’s financials along with it: Revenue declined nearly 50%, dropping the hotel giant down 136 spots in this year’s rankings, and the company reported a loss of $267 million. Adding to the adversity, CEO Arne Sorenson, the first person outside the Marriott family to run the company, passed away from pancreatic cancer in February 2021. —B.K.

324

•

6,425.5 248 15,984.0

128

4,345.2 300 377

325

316 NEWELL BRANDS Atlanta, Ga.

9,385.0

(6.9)

(770.0)

452

(822.3)

14,700.0

327

326

306 LIBERTY MEDIA Englewood, Colo.

9,363.0

(9.0)

(1,421.0)

469

(1,440.6)

44,004.0

181

327

357 HUNTINGTON INGALLS INDUSTRIES Newport News, Va.

9,361.0

5.2

696.0

248

26.8

8,157.0

408

1,901.0 395 (191.0) 481

3,874.0 309 15,091.0

136

328

329 CHENIERE ENERGY Houston, Texas

9,358.0

(3.8)

(85.0)

404

(113.1)

35,697.0

198

329

370 SPARTANNASH Byron Center, Mich.

9,348.5

9.5

75.9

379

1,222.1

2,277.4

496

735.0 454

330

302 ALCOA Pittsburgh, Pa.

9,286.0

(11.0)

(170.0)

414

—

14,860.0

325

3,311.0 332

331

350 AGCO Duluth, Ga.

9,149.7

1.2

427.1

302

241.1

8,504.2

404

2,980.0 348

332

353 VOYA FINANCIAL New York, N.Y.

9,133.0 ¶

2.1

(206.0)

418

—

180,518.0

10,110.0 200

333

324 NRG ENERGY Princeton, N.J.

9,093.0

(7.9)

510.0

283

(88.5)

14,902.0

324

1,680.0 407

334

308 INTERPUBLIC GROUP New York, N.Y.

9,061.0

(11.4)

351.1

321

(46.5)

18,042.7

291

2,895.0 353

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

FORTUNE 500

Marriott properties, such as this hotel and golf course in Orlando, saw bookings plummet in 2020 because of COVID-19.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21 Assets % Rank

2020 $

$ millions

Rank

13,869.1

309

12.7

119

21.4

125

5.18

42,331.9

154

(5.5)

448

(1.7) 433

(3.0)

398

(1.04)

2,855.3

442

2.6

327

5.6

150

19.8

141

16,875.6

287

10.1

157

0.6

360

7.4

11,838.9

334

13.2

114

2.8

256

17.1

11.5

5,974.8

402

(6.4)

457

(7.2) 470

19,355.9

266

11.4

133

3.6

20,576.8

258

7.1

215

73,230.6

102

26.1

% change from 2019

2010–2020 annual growth rate % Rank

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

41.5

—

12.9

199

20.4

(122.1)

—

(38.6)

454

1.8

362

285

15.51

66.1

22.2

32.4

13.5

173

286

299

2.88

(33.6)

—

20.6

141

—

287

160

4.99

30.3

—

(10.0)

367

—

288

(238.1)

—

(37.2)

9.1

(226.2)

476

(4.39)

228

11.6

225

1.81

10.6

38.9

6.38

36.9

6.9

121

21.1

128

3.60

(13.7)

284

(22.2)

424

0.2

375

289

137

(8.1)

357

3.7

346

290

19.0

52.4

20.5

291

10.3

122

27.2

105

17.7

100

292

48,220.2

140

(2.5)

432

(1.1)

422

(62.1)

464

(0.82)

(121.6)

—

(12.3)

381

14.3

158

293

18,871.6

270

10.3

151

2.4

280

14.9

175

1.99

18.5

(2.5)

268

(34.1)

448

2.7

352

294

11,081.0

344

(35.2)

4.3

211

(9.0)

363

1.7

365

295

—

295

—

4.9

266

3.1

247

7.8

292

2.34

12.6

120

4.5

191

35.8

—

31,682.5

202

9.5

165

4.1

198

11.4

229

3.02

(9.3)

8.6

141

9.5

222

15.3

137

297

9,850.7

350

4.0

293

5.2

167

12.1

218

2.82

(39.4)

4.9

200

0.2

294

10.9

222

298

18,166.7

277

6.9

218

14.1

26.2

105

4.07

20.1

9.9

128

23.5

128

7.2

302

299

20,000.3

261

13.7

107

2.4

282

12.7

206

6.90

9.5

0.4

255

(13.7)

392

8.2

283

300

12,006.1

330

4.9

267

4.2

197

13.9

189

7.14

4.4

6.1

182

(0.9)

305

9.4

261

301

8,208.9

369

4.4

281

1.0

335

7.4

297

6.99

19.7

10.8

109

6.4

252

15.8

122

302

(6.7)

458

(0.4) 403

(3.9)

405

—

303

22.4

15.5

43.5

15.10

10.2

18.7

64.0

26.1

304

54,903.0

125

(0.8)

403

(0.5)

383

(0.08)

(102.4)

—

(20.5)

419

16.9

109

305

15,393.7

297

4.4

279

0.75

257.1

—

38.5

—

306

67,418.0

107

20.6

24.8

121

16.9

108

307

2,038.0

455

(0.5)

400

26.3

114

12.3

197

308

— 85,064.7

(0.3) 402 1.3

322

—

5.3

162

13.6

195

7.84

(23.5)

7.0

(1.4) 429

(6.3)

421

(1.21)

(136.7)

—

95,346.7

25.5

27.8

2.06

586.7

12.4

7,034.0

383

(12.0)

472

(9.7)

481

(30.8)

449

(5.92)

—

15,699.6

296

8.4

187

2.0

296

6.4

313

55.63

(56.9)

7.4

2,317.1

452

(3.3)

437

(5.7) 463

(17.0)

438

(6.05)

(436.1)

—

18,180.2

276

0.5

379

0.1

11,118.2

342

(9.8)

467

(3.5) 448

17,765.8

279

5.3

256

8.5

42,352.6

153

20.8

2.5

42.7

1.7

365

0.07

(84.4)

21.5

(7.7)

426

(4.38)

(494.6)

—

19.5

145

4.74

(0.6)

11.8

277

14.6

178

3.37

(4.8)

7.6

388

—

167 85 161

—

100.0

27.3

309

47.6

(11.0)

396

310

(9.6)

365

10.6

227

311

8.4

232

(4.7)

387

312

22.1

136

9.5

254

313

(14.9)

399

1.3

369

314

18.1

160

14.0

166

315

158

41.0

16.7

110

316

25,808.3

228

9.5

168

9.2

14.1

186

1.66

(7.8)

8.6

144

5.3

261

15.8

126

317

30,411.7

209

19.8

3.8

216

11.9

219

3.76

12.9

2.0

239

2.6

280

10.4

232

318

10,721.5

347

5.7

240

5.9

145

12.7

208

2.59

(14.8)

15.0

12.1

203

10.1

246

319

6,798.8

389

5.5

246

6.8

124

22.7

119

5.72

71.3

14.3

17.4

163

6.4

310

320

10.5

117

3.4

271

9.5

255

12.1

204

—

13,505.2

317

5.4

253

3.6

224

6.0

317

7.22

(29.9)

3,900.8

427

4.1

292

14.4

49.2

13.08

169.1

103,220.3

2.2

339

2.2

290

7.9

287

0.44

(45.7)

17,127.6

284

15.2

10.2

21.2

127

10.47

66.7

11,390.4

337

(8.2)

462

(5.2) 460

14,919.2

305

(15.2)

481

(3.2)

(19.9)

441

(1.82)

447

(9.4)

431

—

8,295.7

366

7.4

206

18,256.6

275

(0.9)

404

8.5

36.6

(0.2)

401

—

— — 10.0

126

—

323

13.8

191

10.2

239

324

336

325

326

—

17.0

169

4.5

—

(10.7)

373

—

17.14

29.3

—

(30.3)

441

—

(0.34)

(113.5)

—

(1.7)

310

27.0

27.9

103

3.0

350

7.2

244

—

34.8

8.1

(2.3)

315

—

709.3

470

0.8

370

3.3

238

10.3

251

2.12

1,225.0

6.4

399

(1.8)

422

(1.1)

424

(5.1)

411

(0.91)

—

10,815.9

346

4.7

276

5.0

172

14.3

180

5.65

246.6

9.5

7,878.5

375

(2.3)

427

(0.1)

397

(2.0)

393

(1.84)

—

178 132

321 322

247.9

(828.0)

6,053.6

28 56

286

327

328

329

330

331

332

9,232.1

357

5.6

243

3.4

233

30.4

2.07

(87.7)

1.2

247

(2.2)

314

8.3

282

333

11,407.8

336

3.9

298

1.9

298

12.1

216

0.89

(47.0)

6.6

172

7.6

242

11.6

213

334

F O R T U N E J U N E /J U LY 2 0 2 1 F 1 4

A L E X M E N E N D E Z— G E T T Y I M A G E S

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

335–385

500

354

REVENUES

PROFITS

STOCKHOLDERS’ EQUITY

$ millions

Rank

$ millions

Rank

$ millions Rank

335

322 CAMPBELL SOUP Camden, N.J. 16

9,050.0 ¶

(8.7)

1,628.0

143

671.6

12,372.0

358

2,563.0 372

336

141 SOUTHWEST AIRLINES Dallas, Texas

9,048.0

(59.7)

(3,074.0)

480

(233.7)

34,588.0

203

8,876.0

337

318 NEWS CORP. New York, N.Y. 5

9,008.0

(10.6)

(1,269.0)

465

(918.7)

14,261.0

334

7,582.0 233

$ millions

% change from 2019

ASSETS % change from 2019

RANK 2020 2019

F 1 5 F O R T U N E J U N E /J U LY 2 0 2 1

REGENERON PHARMACEUTICALS The booming biotech made the monoclonal antibody used to treat President Trump, along with numerous other COVID-19 suﬀerers, but Regeneron’s banner year—it shot up 51 places in the rankings, driven by 8% revenue growth in 2020—has as much to do with the company’s other drugs, which treat conditions including macular degeneration and eczema, as with COVID. —Erika Fry

212

338

371 EVERSOURCE ENERGY Springfield, Mass.

8,904.4

4.4

1,205.2

179

32.6

46,099.6

172

14,063.6

143

339

351 ALLEGHANY New York, N.Y.

8,896.7

(1.6)

101.8

374

(88.1)

28,927.0

225

8,755.7

215

340

355 AIR PRODUCTS & CHEMICALS Allentown, Pa. 2

8,856.3

(0.7)

1,886.7

129

7.2

25,168.5

246

12,079.8

167

341

320 AUTO-OWNERS INSURANCE Lansing, Mich.

8,853.2

(11.5)

829.4

221

(38.7)

29,755.6

221

13,820.1

145

342

260 CENTERPOINT ENERGY Houston, Texas

8,835.0 ¶

(28.2)

(773.0)

453

(197.7)

33,471.0

209

343

291 RELIANCE STEEL & ALUMINUM Los Angeles, Calif.

8,811.9

(19.7)

369.1

318

(47.4)

8,106.8

410

5,115.4 285

344

344 EMCOR GROUP Norwalk, Conn.

8,797.1

(4.1)

132.9

364

(59.1)

5,063.8

466

2,052.7 388

8,348.0 224

345

332 OWENS & MINOR Mechanicsville, Va.

8,706.9 ¶

(9.8)

29.9

387

—

3,335.6

486

346

356 MOSAIC Tampa, Fla.

8,681.7

(2.5)

666.1

256

—

19,789.8

279

347

376 ERIE INSURANCE GROUP Erie, Pa. 35

8,666.0

2.6

1,173.1

183

112.9

25,381.1

244

11,932.0

170

348

364 GENWORTH FINANCIAL Richmond, Va.

8,658.0

(0.3)

178.0

355

(48.1)

105,747.0

15,318.0

134

349

386 AMPHENOL Wallingford, Conn.

8,598.9

4.5

1,203.4

181

4.2

12,327.3

361

350

425 BUILDERS FIRSTSOURCE Dallas, Texas 36

8,558.9

17.6

313.5

328

41.4

4,173.7

476

1,152.8 433

351

313 ONEOK Tulsa, Okla.

8,542.2

(16.0)

612.8

262

(52.1)

23,078.8

259

6,042.4 260

712.1

455

9,581.4 202

5,384.9 280

352

340 UNITED RENTALS Stamford, Conn.

8,530.0

(8.8)

890.0

213

(24.2)

17,868.0

295

353

457 BRIGHTHOUSE FINANCIAL Charlotte, N.C.

8,503.0

29.7

(1,061.0)

459

—

247,869.0

18,023.0

113

354

405 REGENERON PHARMACEUTICALS Tarrytown, N.Y.

8,497.1

8.1

3,513.2

66.0

17,163.3

301

11,025.3

179

6,023.0

261

355

343 EASTMAN CHEMICAL Kingsport, Tenn.

8,473.0

(8.6)

478.0

292

(37.0)

16,083.0

314

356

381 COMMSCOPE HOLDING Hickory, N.C.

8,435.9

1.1

(573.4)

438

—

13,576.8

340

4,545.0 297

355.0 468

357

354 RYDER SYSTEM Miami, Fla.

8,420.1

(5.7)

(122.3)

410

—

12,932.0

351

2,255.6

358

325 FIFTH THIRD BANCORP Cincinnati, Ohio

8,402.0

(14.2)

1,427.0

151

(43.2)

204,680.0

23,111.0

359

392 CONSTELLATION BRANDS Victor, N.Y. 10

8,343.5 E

2.8

(11.8)

393

(100.3)

27,323.2

236

12,131.8

166

360

409 INSIGHT ENTERPRISES Tempe, Ariz.

8,340.6

7.9

172.6

358

8.3

4,310.7

474

1,342.4 426

361

246 GLOBAL PARTNERS Waltham, Mass. P

8,321.6

(36.4)

102.2

373

185.0

2,540.5

494

495.5 463

362

339 UNIVAR SOLUTIONS Downers Grove, Ill.

8,265.0

(12.5)

52.9

383

—

6,355.0

443

1,792.3 402 6,206.0 253

381

363

361 YUM CHINA HOLDINGS Plano, Texas

8,263.0

(5.8)

784.0

231

10.0

10,875.0

379

364

365 TARGA RESOURCES Houston, Texas

8,260.3

(4.7)

(1,553.9)

472

—

15,875.7

319

2,955.3 349

365

459 INTERCONTINENTAL EXCHANGE Atlanta, Ga.

8,244.0

25.9

2,089.0

118

8.1

126,200.0

19,498.0 100

366

390 ANDERSONS Maumee, Ohio

8,208.4

0.5

7.7

390

(57.9)

4,272.1

475

367

396 RAYMOND JAMES FINANCIAL St. Petersburg, Fla. 2

8,168.0

1.8

818.0

225

(20.9)

47,482.0

165

961.9

441

7,114.0 238

368

404 THOR INDUSTRIES Elkhart, Ind. 16

8,167.9

3.9

223.0

344

67.3

5,771.5

455

369

368 THRIVENT FINANCIAL FOR LUTHERANS Minneapolis, Minn. 20

8,152.7

(5.3)

637.0

258

(34.2)

110,151.7

370

398 HERSHEY Hershey, Pa.

8,149.7

2.0

1,278.7

168

11.2

9,131.8

400

371

378 CASEY’S GENERAL STORES Ankeny, Iowa 37

8,112.3 E

(3.0)

263.8

338

29.4

3,943.9

480

1,643.2

410

372

402 W.R. BERKLEY Greenwich, Conn.

8,098.9

2.5

530.7

277

(22.2)

28,606.9

228

6,310.8

251

373

463 ACTIVISION BLIZZARD Santa Monica, Calif.

8,086.0

24.6

2,197.0

115

46.2

23,109.0

258

15,037.0

137

374

401 WESTERN & SOUTHERN FINANCIAL GROUP Cincinnati, Ohio

8,057.9

1.7

204.4

350

(16.5)

57,595.4

143

6,020.8 262

2,319.8 379 10,698.4

187

2,234.4 382

375

414 AMERICAN TOWER Boston, Mass. R

8,041.5

6.1

1,690.6

141

(10.4)

47,233.5

169

4,093.5 304

376

383 AMERICAN FINANCIAL GROUP Cincinnati, Ohio

7,909.0

(4.0)

732.0

242

(18.4)

73,566.0

111

6,789.0 240

377

372 DARDEN RESTAURANTS Orlando, Fla. 9

7,806.9

(8.3)

(52.4)

398

(107.3)

9,946.1

384

2,331.2 378

378

407 J.M. SMUCKER Orrville, Ohio 37

7,801.0

(0.5)

779.5

233

51.5

16,970.4

305

8,190.9 225

211.0

348

(75.2)

44,165.0

180

11,769.0

1,826.0

130

17.3

10,931.0

376

5,106.0 286

379

387 WILLIAMS Tulsa, Okla.

7,719.0

(5.9)

380

445 INTUIT Mountain View, Calif. 16

7,679.0

13.2

381

395 CITIZENS FINANCIAL GROUP Providence, R.I.

7,676.0

(4.8)

1,057.0

193

(41.0)

183,349.0

22,673.0

382

408 PPL Allentown, Pa.

7,607.0

(2.1)

1,469.0

149

(15.9)

48,116.0

163

13,373.0 150

172 87

383

417 NVR Reston, Va.

7,566.0

1.9

901.2

211

2.6

5,777.1

453

3,103.1

344

384

388 WESTINGHOUSE AIR BRAKE TECHNOLOGIES Pittsburgh, Pa.

7,556.1

(7.9)

414.4

307

26.8

18,454.5

287

10,122.3

198

385

397 FOOT LOCKER New York, N.Y. 1

7,548.0

(5.7)

323.0

325

(34.2)

7,043.0

433

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

2,771.0 358

FORTUNE 500

Employees at work at Regeneron’s industrial operations and product supply site in Rensselaer, N.Y.

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21

$ millions

Rank

Assets % Rank

2020 $

% change from 2019

15,232.3

300

18.0

13.2

63.5

5.36

665.7

36,066.8

178

(34.0)

491

(8.9)

478

(34.6)

450

(5.44)

(227.4)

2010–2020 annual growth rate % Rank 8.3

149

—

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

0.6

291

6.5

309

335

(13.0)

383

14.5

153

336

14,628.8

307

(14.1)

478

(8.9)

479

(16.7)

436

(2.16)

(930.8)

—

29.4

—

337

29,728.2

210

13.5

110

2.6

273

8.6

280

3.55

26.3

4.9

198

4.5

265

14.1

162

338

8,750.3

361

1.1

365

0.4

374

1.2

370

7.04

(88.1)

(10.7)

293

(22.3)

425

7.7

294

339

62,254.0

114

21.3

7.5

106

15.6

171

8.49

6.9

6.0

183

18.6

152

15.5

135

340

9.4

170

2.8

259

6.0

320

—

341

328

(8.7)

464

(2.3) 439

(9.3)

429

(1.79)

7.7

297

342

9,685.9

351

4.2

287

4.6

190

7.2

303

6,146.0

398

1.5

356

2.6

272

6.5

312

2,763.0

444

0.3

383

0.9

340

4.2

11,983.1

331

7.7

202

3.4

236

7.0

— 12,493.3

—

(234.6)

—

(17.2)

408

5.66

(45.3)

8.0

2.5

281

11.2

220

343

2.40

(58.3)

—

6.5

251

12.9

188

344

338

0.47

—

(12.3)

294

423.6

1.9

361

345

307

1.75

—

(0.6)

258

7.9

237

(9.7)

394

346

347

(14.1)

393

(11.7)

397

348

13.5

109

4.6

182

9.8

260

—

462

2.1

342

0.2

384

1.2

371

0.35

39,526.2

168

14.0

102

9.8

22.3

120

9,572.2

354

3.7

301

7.5

105

27.2

22,542.9

245

7.2

210

2.7

268

10.1

254

23,819.0

240

10.4

150

5.0

175

19.6

143

3,866.5

428

(12.5)

474

50,688.4

134

41.3

1,679.2

154

—

(47.8)

1.9

241

1.96

4.3

10.7

111

2.66

40.0

—

1.42

(53.7)

(0.9)

12.20

(19.3)

—

(0.4) 407

(5.9)

418

(11.58)

—

20.5

31.9

30.52

65.3

—

3.0

15,033.2

302

5.6

241

253

7.9

288

3.50

(36.1)

1.7

3,124.2

440

(6.8)

459

(4.2) 453

(161.5)

474

(3.20)

—

(45.0)

11.3

—

261

22.1

137

18.3

349

60.6

35.4

350

(43.8)

457

10.3

236

351

39.1

26.1

352

(7.7)

356

—

30.9

31.8

11.8

207

(5.6)

338

—

20.4

143

4.5

335

357

(5.8)

340

9.5

257

358

17.3

166

26.7

359

8.3

233

19.2

360

(6.1)

341

4.5

337

361

(21.6)

421

—

362

28.7 243

—

4,072.0

425

(1.5)

417

(0.9)

415

(5.4)

414

(2.34)

26,628.6

226

17.0

0.7

353

6.2

315

1.83

44,247.5

148

(0.1)

393

(0.0) 395

(0.1)

381

—

3,349.5

437

2.1

341

4.0

204

12.9

203

4.87

9.9

11.7

726.1

469

1.2

364

4.0

203

20.6

131

2.74

238.3

5.6

189

3,650.6

431

0.6

374

0.8

346

3.0

354

0.31

—

7.2

111

12.6

210

1.95

6.0

—

19.5

149

—

(9.8) 482

(52.6)

460

(7.26)

—

(32.7)

444

5.5

104

231

9.5

166

7,259.8

382

(18.8)

484

62,843.7

113

25.3

1.7

305

10.7

241

3.77

10.2

13.4

26.1

116

921.9

467

0.1

390

0.2

381

0.8

373

0.23

(58.2)

(20.6)

303

0.9

290

16,877.9

286

10.0

159

1.7

303

11.5

226

5.83

(18.7)

12.3

9.0

7,460.0

381

2.7

322

3.9

211

9.6

264

4.02

62.8

6.9

168

28.0

7.8

199

0.6

361

6.0

321

—

32,765.3

194

15.7

14.0

57.2

6.11

11.9

10.7

112

7,987.6

373

3.3

309

6.7

126

16.1

167

7.10

28.9

12.0

13,364.2

318

6.6

223

1.9

300

8.4

283

2.81

(20.2)

72,052.1

103

27.2

9.5

14.6

177

2.82

2.5

329

0.4

373

3.4

347

—

21.0

3.6

227

41.3

3.79

1.0

334

10.8

240

(0.5) 409

(2.2)

394

9.5

266

— 106,234.5

9,858.2

349

9.3

171

18,506.6

272

(0.7)

402

13,865.9

310

10.0

160

28,777.6

218

2.7

104,897.1

23.8

353

354

355

356

363

325

364

18.2

365

1.9

360

366

224

13.0

183

367

100

13.3

177

368

369

6.0

254

15.1

140

370

13.2

197

16.6

116

371

3.8

216

(3.1)

321

16.1

119

372

44.6

23.9

57.1

23.4

373

—

(10.6)

15.2

(0.6)

303

17.7

8.20

(16.8)

6.6

171

(16.1)

403

(0.43)

(107.6)

—

10.5

214

6.84

51.3

5.1

196

14.5

183

(7.6) 66

46.1 (6.8)

347

—

263

(16.5)

404

6.6

4.6

186

321

0.5

368

1.8

363

0.17

(75.7)

—

16.7

35.8

6.92

17.5

14.6

18,768.4

271

13.8

106

0.6

362

4.7

335

2.22

(41.7)

—

22,177.5

248

19.3

3.1

250

11.0

236

1.91

(19.4)

(1.3)

—

374

101

375

14.5

154

376

14.8

146

377

8.6

275

378

355

5.5

327

379

23.8

380

381

307

382

17,318.0

282

11.9

128

15.6

29.0

230.11

4.1

21.3

7.1

245

19.4

383

14,953.0

304

5.5

250

2.2

288

4.1

339

2.17

17.9

5.4

192

(5.2)

336

11.2

219

384

5,809.4

405

4.3

284

4.6

188

11.7

224

3.08

(31.6)

11.2

106

6.9

247

10.1

245

385

F O R T U N E J U N E /J U LY 2 0 2 1 F 1 6

24,892.3

—

COURTESY OF REGENERON PHARMACEUTICALS

Revenues % Rank

Stockholders’ equity % Rank

TOTAL RETURN TO INVESTORS

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

REVENUES

386–443

386 400 CINCINNATI FINANCIAL Fairfield, Ohio

$ millions

7,536.3

(4.9)

1,216.4

ASSETS

STOCKHOLDERS’ EQUITY

Rank

% change from 2019

$ millions

Rank

176

(39.1)

27,541.7

234

10,788.9

184

8,731.0

216

$ millions Rank

387

457 WEYERHAEUSER Seattle, Wash. R

7,532.0

14.9

797.0

228

—

16,311.0

312

388

391 WESTLAKE CHEMICAL Houston, Texas

7,504.0

(7.6)

330.0

323

(21.6)

13,835.0

337

6,043.0 259

389

284 NAVISTAR INTERNATIONAL Lisle, Ill. 12

7,503.0

(33.3)

(347.0)

427

(257.0)

6,637.0

438

(3,826.0) 492

390

432 MAGELLAN HEALTH Phoenix, Ariz.

7,501.5 ¶

4.8

382.3

315

583.9

3,359.9

485

1,870.0 399

391

450 BOOZ ALLEN HAMILTON HOLDING McLean, Va. 3

7,463.8

11.3

482.6

290

15.3

4,794.0

468

856.4 446

392

369 AUTOLIV Auburn Hills, Mich. 38

7,447.4

(12.9)

186.9

353

(59.5)

8,156.8

409

2,408.9 376

393

451 S&P GLOBAL New York, N.Y.

394 395

7,442.0

11.1

2,339.0

112

10.2

12,537.0

354

GLOBAL PAYMENTS Atlanta, Ga.

7,423.6

51.1

584.5

266

35.7

44,201.5

179

403 MOTOROLA SOLUTIONS Chicago, Ill.

7,414.0

(6.0)

949.0

202

9.3

10,876.0

378

•

509.0 462 27,332.4

(558.0) 483

396

411 KEYCORP Cleveland, Ohio

7,337.0

(4.6)

1,343.0

161

(21.8)

170,336.0

397

342 DELEK US HOLDINGS Brentwood, Tenn.

7,301.8 E

(21.5)

(608.0)

442

(295.8)

6,134.1

447

398

384 MASCO Livonia, Mich.

7,289.0 ¶

(11.5)

1,224.0

172

30.9

5,777.0

454

195.0 473

399

415 GRAYBAR ELECTRIC St. Louis, Mo.

7,265.7

(3.4)

121.8

368

(15.7)

2,551.2

493

930.5 442

17,981.0

115

1,006.7 440

400

416 WEC ENERGY GROUP Milwaukee, Wis.

7,241.7

(3.7)

1,199.9

182

5.8

37,028.1

195

401

427 OLD REPUBLIC INTERNATIONAL Chicago, Ill.

7,166.0

(0.7)

558.6

270

(47.1)

22,815.2

261

6,186.6 254

402

393 FRONTIER COMMUNICATIONS Norwalk, Conn.

(4,900.0) 494

403 404

•

CHEWY Dania Beach, Fla. 1

322 PVH New York, N.Y. 1

10,469.7

194

7,155.0

(11.7)

(402.0)

433

—

16,795.0

307

7,146.3

47.4

(92.5)

405

—

1,740.9

499

(2.0) 478

7,132.6

(28.0)

(1,136.1)

460

(372.3)

13,293.5

346

4,730.3 294

405

428 ASBURY AUTOMOTIVE GROUP Duluth, Ga.

7,131.8

(1.1)

254.4

340

38.0

3,676.3

484

406

444 SEABOARD Merriam, Kans.

7,126.0

4.2

283.0

334

0.0

6,399.0

442

3,817.0

407

442 POLARIS Medina, Minn.

7,108.3

3.6

124.8

365

(61.5)

4,632.7

470

1,144.5 435

905.5 444

(31.0)

395

(113.7)

7,376.0

427

1,758.0 406

246

(1.6)

12,796.0

352

4,910.0 290

312

408

367 DANA Maumee, Ohio

7,106.0

(17.6)

409

476 FIRST AMERICAN FINANCIAL Santa Ana, Calif.

7,086.7

14.3

410

441 CINTAS Cincinnati, Ohio 9

7,085.1

2.8

876.0

215

(1.0)

7,669.9

421

3,235.2 340

411

426 TOLL BROTHERS Fort Washington, Pa. 12

7,077.7

(2.0)

446.6

298

(24.3)

11,065.7

375

4,875.2 292

412

466 SCIENCE APPLICATIONS INTERNATIONAL Reston, Va. 1

7,056.0

10.6

209.0

349

(7.5)

5,723.0

456

1,542.0

413

431 OWENS CORNING Toledo, Ohio

7,055.0

(1.5)

(383.0)

430

(194.6)

9,481.0

392

3,901.0 308

414

399 ZIMMER BIOMET HOLDINGS Warsaw, Ind.

7,024.5

(12.0)

(138.9)

412

(112.3)

24,417.7

253

12,194.2

415

347 XEROX HOLDINGS Norwalk, Conn.

7,022.0

(23.2)

192.0

352

(85.8)

14,741.0

326

5,806.0 273

416

429 ARTHUR J. GALLAGHER Rolling Meadows, Ill.

7,003.6

(2.7)

818.8

224

22.4

22,331.4

265

6,186.2 255

417

435 AVERY DENNISON Glendale, Calif.

6,971.5

(1.4)

555.9

272

83.1

6,083.9

448

1,484.9

418

385 SANMINA San Jose, Calif. 2

6,960.4

(15.5)

139.7

363

(1.3)

3,772.7

482

1,629.9

412

6,955.9

29.8

775.2

234

(19.6)

53,118.4

150

9,403.9 207

419

F 1 7 F O R T U N E J U N E /J U LY 2 0 2 1

$ millions

% change from 2019

500

RANK 2020 2019

PROFITS

•

JEFFERIES FINANCIAL GROUP New York, N.Y. 21

696.4

415 165

420

434 BEACON ROOFING SUPPLY Herndon, Va. 2

6,943.9

(2.3)

(80.9)

402

—

6,957.5

434

2,160.1

385

421

455 SECURIAN FINANCIAL GROUP St. Paul, Minn.

6,870.4

4.1

243.3

343

(44.1)

68,059.3

124

6,782.7

241

422

377 OSHKOSH Oshkosh, Wis. 2

6,856.8

(18.2)

324.5

324

(44.0)

5,815.9

452

2,850.7 355

423

447 FM GLOBAL Johnston, R.I. 18

6,798.0

0.8

1,731.9

140

(30.1)

27,975.7

232

16,494.3

123

424

210 BOOKING HOLDINGS Norwalk, Conn.

6,796.0

(54.9)

59.0

381

(98.8)

21,874.0

267

4,893.0

291

425

489 WILLIAMS-SONOMA San Francisco, Calif. 1

6,783.2

15.0

253

91.2

4,661.4

469

1,651.2 409

426

366 COTY New York, N.Y. 5

6,737.9 ¶

(22.1)

(1,006.7)

458

—

16,728.8

308

3,720.4

427

474 CLOROX Oakland, Calif. 5

6,721.0

8.2

939.0

205

14.5

6,213.0

446

680.7

318

908.0 443

428

341 PIONEER NATURAL RESOURCES Irving, Texas

6,685.0

(28.3)

(200.0)

417

(125.9)

19,229.0

284

11,569.0

429

433 DOVER Downers Grove, Ill.

6,683.8

(6.3)

683.5

251

0.8

9,152.1

399

3,385.8 327

430

443 CMS ENERGY Jackson, Mich.

6,680.0

(2.4)

755.0

237

11.0

29,666.0

222

5,496.0 279

431

472 ZOETIS Parsippany, N.J.

6,675.0

6.6

1,638.0

142

9.2

13,609.0

339

3,769.0

432

436 HANESBRANDS Winston-Salem, N.C.

6,664.4

(4.3)

(75.6)

400

7,698.9

420

814.0 450 3,246.3 338

(112.6)

175

315

433

437 PACKAGING CORP. OF AMERICA Lake Forest, Ill.

6,658.2

(4.4)

461.0

296

(33.8)

7,433.2

426

434

446 REGIONS FINANCIAL Birmingham, Ala.

6,655.0

(1.5)

1,094.0

188

(30.8)

147,389.0

435

477 GRAPHIC PACKAGING HOLDING Atlanta, Ga.

6,559.9

6.5

167.3

360

(19.1)

7,804.6

414

1,424.3 424

436

423 UGI King of Prussia, Pa. 2

4,128.0 303

437 438

18,111.0

112

6,559.0

(10.4)

532.0

276

107.7

13,985.0

336

6,468.8

14.8

287.5

332

92.1

2,806.4

490

881.3 445

484 AVANTOR Radnor, Pa.

6,393.6

5.8

116.6

370

208.5

9,906.5

387

1,670.6 408

•

SPROUTS FARMERS MARKET Phoenix, Ariz.

439

412 VERITIV Atlanta, Ga.

6,345.6

(17.2)

34.2

385

—

2,335.0

495

583.1 460

440

452 ROCKWELL AUTOMATION Milwaukee, Wis. 2

6,329.8

(5.5)

1,023.4

197

47.1

7,264.7

431

1,027.8 439

441

430 MASTEC Coral Gables, Fla.

6,321.0

(12.0)

322.8

326

(17.7)

5,227.8

462

2,001.9

442

413 DCP MIDSTREAM Denver, Colo. P

6,302.0

(17.4)

(306.0)

424

(1,900.0)

12,957.0

350

5,834.0 270

6,301.1

(8.6)

1,209.3

177

(19.0)

170,003.9

443 440 NORTHERN TRUST Chicago, Ill. D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

11,688.3

391 173

FORTUNE 500

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21

$ millions

Rank

Revenues % Rank

Assets % Rank

Stockholders’ equity % Rank

2020 $

% change from 2019

TOTAL RETURN TO INVESTORS 2010–2020 annual growth rate % Rank

2020 % Rank

2010–2020 annual rate % Rank

Industry table RANK number 2020

16,601.6

292

16.1

4.4

194

11.3

232

7.49

(38.1)

12.5

(14.5)

396

14.7

148

26,655.3

225

10.6

148

4.9

176

9.1

273

1.07

—

(12.3)

295

14.2

186

9.7

253

387

11,350.4

340

4.4

280

2.4

281

5.5

329

2.56

(21.2)

4.4

210

18.5

156

16.0

120

388

4,390.5

420

(4.6)

442

(5.2) 459

(3.48)

(256.8)

—

51.9

(2.7)

384

389

2,421.0

447

5.1

262

11.4

134

14.98

557.0

14.0

5.9

256

5.8

322

390

11,089.5

343

6.5

225

24.5

124

24.7

391

8,112.8

372

2.5

330

10.2

215

7.4

299

392

85,001.6

31.4

59,484.3

119

7.9

197

—

20.4

10.1

56.4

3.41

17.2

2.3

285

7.8

293

2.14

(59.5)

(10.4)

18.7

459.5

9.66

12.3

13.8

21.5

138

27.0

393

1.3

321

2.1

362

1.95

(9.7)

4.6

206

18.5

154

25.2

394

31,785.8

201

12.8

117

8.7

—

19,182.0

267

18.3

0.8

348

7.5

1,609.0

463

(8.3)

463

(9.9) 483

(60.4)

15,208.8

301

16.8

21.2

627.7

1.7

353

4.8

180

13.1

29,521.5

212

16.6

3.2

240

11.5

6,650.3

390

7.8

200

2.4

278

9.0

275

29.3

475

(5.6)

451

(2.4) 442

—

10.1

11.3

103

7.3

243

18.7

395

(21.6)

11.2

105

(14.4)

394

9.2

265

396

463

(8.26)

(303.4)

—

(49.1)

462

—

4.59

42.5

—

15.7

175

19.1

200

5.38

(16.1)

10.7

113

—

228

3.79

5.9

7.0

166

2.5

282

15.8

1.87

(46.7)

30.6

(7.3)

351

—

(89.9)

468

(3.85)

186

(1.3)

416

(5.3)

461

—

(15.9)

482

(8.5)

477

(24.0)

3,798.1

429

3.6

305

6.9

122

28.1

4,283.3

422

4.0

296

4.4

193

7.4

2.7

266

10.9

238

(0.4) 406

(1.8)

391

370

1.8

351

(0.4)

398

292

1.27

380

434

—

5.45

7,522.7

8,179.3

296

35,176.9

3,529.4

386

—

397

398

399

127

400

9.8

250

401

(48.5)

405

402

(0.23)

—

210.0

—

(15.96)

(385.0)

—

(10.6)

370

4.2

13.18

38.0

27.7

30.4

22.9

405

298

244.21

0.6

0.5

252

(28.5)

437

4.4

338

406

1.99

(61.7)

(0.7)

260

(3.4)

323

11.7

210

407

(0.21)

(113.5)

—

9.1

223

2.7

354

408

446

340

403

404

6,216.5

396

9.8

163

5.4

154

14.2

185

6.16

(1.0)

17.8

(8.3)

359

16.3

118

409

35,850.9

180

12.4

126

11.4

27.1

8.11

1.5

19.2

32.6

30.6

410

6,984.8

384

6.3

227

4.0

201

9.2

272

3.40

(15.6)

—

11.4

210

9.1

267

411

4,853.8

416

3.0

315

3.7

223

13.6

196

3.56

(7.0)

—

10.7

213

—

412

9,662.7

352

(5.4)

447

(4.0)

451

(9.8)

432

(3.53)

(195.9)

—

18.4

157

10.4

229

413

33,347.3

193

(2.0)

424

(0.6)

410

(1.1)

388

(0.67)

(112.2)

—

3.7

270

11.9

205

414

4,821.3

417

2.7

320

1.3

323

3.3

348

0.84

(85.5)

(6.9)

285

(33.9)

447

(0.4)

376

415

24,353.4

234

11.7

131

3.7

221

13.2

199

4.20

19.3

9.7

131

32.4

19.2

416

15,246.5

299

8.0

195

9.1

37.4

6.61

85.2

8.3

146

20.9

140

16.6

113

417

2,686.7

445

2.0

344

3.7

220

8.6

279

1.97

0.0

2.9

223

(6.9)

348

10.8

226

418

7,524.6

379

11.1

139

1.5

316

8.2

285

2.65

(12.5)

(10.3)

291

18.9

151

0.8

371

419

3,631.4

432

(1.2)

412

(1.2) 426

(3.7)

403

(1.52)

—

25.7

120

8.4

278

420

3.5

306

0.4

371

3.6

344

—

371

4.7

273

5.6

152

11.4

230

4.72

354

10.5

230

18.7

42.0

13.8

169

(36.4)

453

—

— 8,114.5 — 95,434.4

—

(42.5)

(5.9)

— 279

(7.6) 8.5

25.5

6.2

133

10.5

246

—

0.9

368

0.3

378

1.2

369

1.44

(98.7)

(17.9)

302

91.8

16.7

—

— 5.7

—

228

—

314

10.0

158

14.6

41.2

8.61

6,908.8

386

(14.9)

480

(6.0) 465

(27.1)

448

(1.33)

24,262.6

236

14.0

103

15.1

103.4

7.36

16.5

34,397.3

190

(3.0)

434

(1.0) 420

(1.7)

390

(1.21)

(126.4)

—

19,727.1

264

10.2

152

7.5

107

20.2

137

4.70

2.0

2.4

17,718.7

280

11.3

137

2.5

274

13.7

191

2.64

10.5

7.5

74,829.2

24.5

12.0

43.5

3.42

10.0

—

25.7

119

—

6,865.0

387

(1.1)

410

(1.0)

417

(9.3)

430

(0.21)

(112.8)

—

2.7

278

10.8

12,775.0

324

6.9

217

6.2

131

14.2

184

4.84

(34.1)

9.2

27.0

110

19,847.5

262

16.4

0.7

351

6.0

318

1.03

(31.3)

—

(0.7)

304

421

422

423

424

425

426

34.4

15.5

134

427

(23.1)

428

3.1

349

428

234

11.7

208

15.1

142

429

159

(0.3)

298

16.4

117

430

188

136

431

224

432

21.7

433

11.2

217

434

4,862.4

415

2.6

328

2.1

292

11.7

222

0.60

(14.3)

34.9

4.0

267

17.2

105

435

8,552.8

363

8.1

193

3.8

217

12.9

202

2.54

80.1

4.9

202

(19.4)

413

8.1

285

436

3,139.9

439

4.4

278

10.2

32.6

2.43

94.4

—

3.9

268

—

437

16,631.4

291

1.8

350

1.2

329

7.0

306

0.09

—

55.1

—

438

5.7

258

—

26.2

115

15.8

679.5

471

0.5

376

1.5

315

5.9

324

2.08

—

30,832.2

207

16.2

14.1

99.6

8.77

50.4

10.5

118

6,953.4

385

5.1

258

6.2

135

16.1

166

4.38

(15.3)

15.4

4,513.1

419

(4.9)

444

(2.4)

441

(5.2)

413

(1.75)

—

21,854.2

250

19.2

0.7

352

10.3

249

5.46

(17.6)

7.1

164

125

439

440

6.3

253

16.7

111

441

(13.3)

388

1.6

367

442

(9.3)

364

7.8

292

443

F O R T U N E J U N E /J U LY 2 0 2 1 F 1 8

13,653.8

THE LISTS

L A R G E ST U. S. C O R P O R AT I O N S

REVENUES

ASSETS

STOCKHOLDERS’ EQUITY

$ millions

% change from 2019

$ millions

Rank

% change from 2019

$ millions

Rank

444

438 M&T BANK Buﬀalo, N.Y.

6,281.2

(9.5)

1,353.2

160

(29.9)

142,601.1

445

490 REALOGY HOLDINGS Madison, N.J.

6,221.0

6.0

(360.0)

428

—

6,934.0

435

446

439 NCR Atlanta, Ga.

(79.0)

401

(114.0)

8,414.0

405

1,321.0 427

110

11.3

10,659.0

382

7,707.0 232

444–500

500

RANK 2020 2019

$ millions Rank 16,187.3

126

1,763.0 405

6,207.0

(10.2)

447

•

T. ROWE PRICE Baltimore, Md.

6,206.7

10.5

2,372.7

448

•

VERTEX PHARMACEUTICALS Boston, Mass.

6,205.7

49.1

2,711.6

130.4

11,751.8

369

449

•

BIG LOTS Columbus, Ohio 1

6,199.2

16.5

629.2

260

159.5

4,037.3

478

450

469 RALPH LAUREN New York, N.Y. 3

6,159.8

(2.4)

384.3

314

(10.8)

7,279.9

430

2,693.1

451

418 ULTA BEAUTY Bolingbrook, Ill. 1

6,152.0

(16.8)

175.8

356

(75.1)

5,090.0

464

1,999.5 392

243.4

8,686.8

218

1,277.7 430 363

6,129.3

28.7

342

(4.4)

7,738.0

418

3,504.5 326

453

352 ICAHN ENTERPRISES Sunny Isles Beach , Fla. P

6,123.0 E

(31.9)

(1,653.0)

473

—

24,987.0

248

3,382.0 328

454

420 BLACKSTONE GROUP New York, N.Y.

6,101.9

(16.8)

1,045.4

195

(49.0)

26,269.3

239

6,652.0 244

455

453 O-I GLASS Perrysburg, Ohio

6,091.0

(9.0)

249.0

341

—

8,882.0

402

456

494 FORTUNE BRANDS HOME & SECURITY Deerfield, Ill.

6,090.3

5.7

553.1

273

28.1

7,358.7

428

457

374 NOV Houston, Texas 39

6,090.0

(28.2)

(2,542.0)

475

—

9,929.0

385

5,210.0

458

449 OVINTIV Denver, Colo.

6,087.0

(9.5)

(6,097.0)

490

(2,705.6)

14,469.0

329

3,837.0

311

6,069.9

21.6

603.4

263

(74.9)

18,103.0

290

11,651.2

174

6,025.0 ¶

(27.8)

1,034.0

196

84.0

8,713.0

403

5,998.5

7.8

369.8

317

(27.1)

27,006.8

238

10,634.0

188 417

452

459 460 461

•

TAYLOR MORRISON HOME Scottsdale, Ariz.

ALEXION PHARMACEUTICALS Boston, Mass.

382 HUNTSMAN The Woodlands, Texas •

EQUINIX Redwood City, Calif. R

297.0

471

2,775.5 357 281

3,519.0 325

462

462 ABM INDUSTRIES New York, N.Y. 12

5,987.6

(7.9)

0.3

392

(99.8)

3,776.9

481

1,500.3

463

475 INGREDION Westchester, Ill.

5,987.0

(3.6)

348.0

322

(15.7)

6,858.0

436

2,951.0 350

355.8

320

1.6

5,982.9

449

2,020.1

474

(5,236.2)

13,382.0

345

(1,274.0) 489

464

•

CHIPOTLE MEXICAN GRILL Newport Beach, Calif.

5,984.6

7.1

465

•

SINCLAIR BROADCAST GROUP Hunt Valley, Md.

5,943.0

40.2

•

LPL FINANCIAL HOLDINGS San Diego, Calif.

5,871.6

4.4

472.6

293

(15.6)

6,523.6

439

1,314.9 428

496 CROWN CASTLE INTERNATIONAL Houston, Texas R

5,840.0

1.3

1,056.0

194

22.8

38,768.0

190

9,461.0 205

5,806.4

27.1

1,216.8

175

3.5

9,280.0

396

2,665.4 365

5,794.0

(2.0)

871.0

217

5.2

32,030.0

213

8,938.0

211

5,767.0

2.3

(72.0)

399

(135.6)

5,705.0

457

1,580.0

413

466 467 468 469 470

•

KLA Milpitas, Calif. 5

488 AMEREN St. Louis, Mo. •

KBR Houston, Texas

(2,414.0)

389

471

424 BURLINGTON STORES Burlington, N.J. 1

5,764.0

(20.9)

(216.5)

419

(146.5)

6,781.1

437

464.8 465

472

481 OLIN Clayton, Mo.

5,758.0

(5.8)

(969.9)

457

—

8,270.9

407

1,450.8 420

5,720.0

14.7

321.5

327

21.0

5,542.5

460

2,661.2 367

5,698.7

0.3

0.8

391

(99.4)

12,146.7

363

2,854.5 354

473 474

•

CACI INTERNATIONAL Arlington, Va. 5

499 POST HOLDINGS St. Louis, Mo. 2

475

•

ACADEMY SPORTS AND OUTDOORS Katy, Texas 1,40

5,689.2

17.8

308.8

330

157.2

4,384.5

473

1,112.0 436

476

•

ARCONIC Pittsburgh, Pa. 41

5,675.0

—

(109.0)

407

—

6,314.0

444

1,433.0 423

5,655.0

(10.2)

1,985.0

124

133.0

10,909.0

377

3,526.0 324

5,652.0

1.0

904.0

210

(30.1)

5,852.0

451

(7,891.0) 498

477

470 CELANESE Irving, Texas

478

•

YUM BRANDS Louisville, Ky.

479

•

FASTENAL Winona, Minn.

5,647.3

5.9

859.1

218

8.6

3,964.7

479

2,733.2

480

•

NASDAQ New York, N.Y.

5,627.0

32.0

933.0

206

20.5

17,979.0

294

6,433.0 246

487 ANALOG DEVICES Wilmington, Mass. 12

5,603.1

(6.5)

1,220.8

173

(10.4)

21,468.6

269

11,997.9

169

•

MCCORMICK Hunt Valley, Md. 21

5,601.3

4.7

747.4

240

6.4

12,089.7

364

3,926.1

307

•

CARVANA Tempe, Ariz.

5,586.6

41.8

(171.1)

415

—

3,034.5

489

5,566.5

(3.6)

798.9

227

(33.2)

20,220.9

275

10,114.5

198.2

11,112.0

374

7,461.0 234

481 482 483 484

493 FRANKLIN RESOURCES San Mateo, Calif. 2,42

361

387.6 467 199

485

•

ELECTRONIC ARTS Redwood City, Calif. 3

5,537.0

11.9

3,039.0

486

•

MDU RESOURCES GROUP Bismarck, N.D.

5,532.8

3.7

390.2

312

16.3

8,053.4

412

3,079.1

487

•

SELECT MEDICAL HOLDINGS Mechanicsburg, Pa.

5,531.7

1.4

259.0

339

74.5

7,655.4

422

1,060.5 437

488

•

ROPER TECHNOLOGIES Sarasota, Fla.

5,527.1

3.0

949.7

201

(46.3)

24,024.8

255

10,479.8

193

489

•

RPM INTERNATIONAL Medina, Ohio 9

5,507.0

(1.0)

304.4

331

14.2

5,631.0

458

1,262.4

431

4,482.6 298

490 F 1 9 F O R T U N E J U N E /J U LY 2 0 2 1

PROFITS

491 492

498 CERNER North Kansas City, Mo. •

PATTERSON St. Paul, Minn. 37

491 COMMERCIAL METALS Irving, Texas 4

5,505.8

(3.3)

780.1

232

47.3

7,521.1

425

5,490.0

(1.5)

(588.4)

439

(803.6)

2,715.4

491

5,476.5

(6.0)

279.5

335

41.1

4,081.7

477

493

•

BOISE CASCADE Boise, Idaho

5,474.8

17.9

175.0

357

116.2

1,965.7

497

494

•

HASBRO Pawtucket, R.I.

5,465.4

15.8

222.5

345

(57.2)

10,818.4

380

495

•

A-MARK PRECIOUS METALS El Segundo, Calif. 5

5,461.1

14.2

30.5

386

1,271.2

758.0

500

•

CAMPING WORLD HOLDINGS Lincolnshire, Ill.

834.1

346

448

1,889.2 396 850.8 447 2,896.7

352

101.0 475

5,446.6

11.3

122.3

367

—

3,256.4

487

26.8 477

497

478 NETAPP Sunnyvale, Calif. 37

5,412.0

(11.9)

819.0

223

(29.9)

7,522.0

424

242.0 472

498

345 AVIS BUDGET GROUP Parsippany, N.J.

5,402.0

(41.1)

(684.0)

449

(326.5)

17,538.0

299

(155.0) 480

499

471 R.R. DONNELLEY & SONS Chicago, Ill.

5,398.8 ¶

(14.0)

98.5

376

—

3,130.9

488

(257.7) 482

5,371.0

11.2

1,778.0

134

25.0

12,409.0

357

496

500

•

MOODY’S New York, N.Y. TOTALS

D E F I N I T I O N S , E X P L A N AT I O N S , A N D F O OT N OT E S A R E O N PAG E F 2 2 .

13,763,076.2

858,608.5

51,037,246.9

1,569.0 8,364,084.5

414

FORTUNE 500

MARKET VALUE

PROFITS AS % OF …

EARNINGS PER SHARE

3/31/21

$ millions

Rank

Revenues % Rank

Assets % Rank

Stockholders’ equity % Rank

2020 $

% change from 2019

TOTAL RETURN TO INVESTORS 2010–2020 annual growth rate % Rank

2020 % Rank

2010–2020 annual rate % Rank

19,502.2

265

21.5

0.9

338

8.4

284

9.94

(27.7)

5.7

(21.8)

422

6.7

1,767.4

458

(5.8)

452

(5.2)

457

(20.4)

442

(3.13)

—

35.5

—

4,943.2

413

(1.3)

415

(0.9)

414

(6.0)

419

(0.86)

(125.6)

—

6.9

248

9.3

39,031.0

169

38.2

22.3

30.8

9.98

14.7

55,862.8

124

43.7

23.1

31.2

10.29

128.2

—

16.11

161.5

187

305

Industry table RANK number 2020 9

444

445

262

446

28.0

101

12.1

201

447

7.9

236

21.0

448

2,394.3

449

10.1

154

15.6

49.2

19.0

55.6

5.4

328

449

9,005.3

359

6.2

229

5.3

163

14.3

182

4.98

(5.5)

0.5

253

(10.2)

369

0.8

370

450

17,377.1

281

2.9

317

3.5

231

8.8

278

3.11

(74.4)

10.4

121

13.4

195

23.9

451

3,969.2

426

4.0

295

3.1

246

6.9

308

1.88

(20.0)

—

17.3

165

—

452

489

(6.6) 467

12,964.7

322

(27.0)

(48.9)

459

(7.33)

—

(3.4)

325

12.9

187

453

50,966.6

132

17.1

4.0

206

15.7

170

1.50

(50.5)

—

19.8

148

23.2

454

2,327.1

451

4.1

290

2.8

258

83.8

1.57

—

0.6

293

(8.8)

393

455

13,264.2

319

9.1

174

7.5

104

19.9

140

3.94

28.8

—

33.3

—

456

(48.8)

458

(6.62)

—

(44.9)

459

(12.6)

401

457

(158.9)

473

(23.47)

(621.6)

—

(34.9)

449

(18.6)

404

458

5,326.3

410

(41.7)

493

(25.6) 498

6,219.6

395

(100.2)

500

(42.1)

500

33,596.1

191

9.9

161

3.3

239

5.2

333

2.72

(74.6)

18.0

44.5

14.5

152

459

6,390.1

392

17.2

11.9

29.4

4.66

91.0

45.4

7.6

241

7.8

290

460

60,679.1

118

6.2

230

1.4

320

3.5

346

4.18

(30.2)

17.7

24.3

125

26.7

461

3,422.2

436

0.0

392

0.0

391

0.0

380

0.00

(99.8)

(42.8)

307

2.5

283

6.0

317

462

6,034.6

400

5.8

239

5.1

171

11.8

221

5.15

(16.0)

8.9

139

(12.8)

382

7.7

295

463

39,987.7

165

5.9

234

5.9

144

17.6

157

12.52

1.1

8.3

148

65.7

20.6

464

2,167.0

454

(40.6)

492

11,358.6

338

8.0

194

74,392.4

18.1

50,906.3

133

21.0

20,780.2

256

15.0

5,407.0

409

(1.2)

19,835.9

263

(3.8)

6,024.1

401

(18.0) 492

(6,021.6)

—

(0.5)

301

19.0

465

35.9

— 64

(30.20) 5.86

(11.5)

—

14.5

184

13.7

170

466

264

10.6

245

2.35

31.3

—

15.5

177

16.6

115

467

45.7

7.70

2.8

20.1

48.0

26.9

468

3.50

4.5

19.7

4.4

266

14.9

144

469

(0.51)

(136.2)

—

3.1

275

1.6

368

470

(3.28)

(147.5)

—

14.7

181

—

465

(6.14)

—

50.8

5.6

7.2

110

2.7

13.1

2.7

265

9.7

262

414

(1.3)

427

(4.6)

409

439

(3.2) 446

(46.6)

457

(16.8)

483

(11.7) 485

(66.9)

471

324

472

112

473

6,223.5

394

5.6

242

5.8

148

12.1

217

12.61

20.6

13.8

(0.3)

299

16.7

6,804.9

388

0.0

391

0.0

392

0.0

379

0.01

(99.4)

—

(7.4)

352

—

474

2,459.2

446

5.4

252

7.0

117

27.8

3.79

—

475

(1.9)

423

476

2,792.7

443

(7.6)

424

17,104.5

285

35.1

18.2

(1.7) 434 15

56.3

32,460.0

196

16.0

15.4

—

(1.00)

—

16.75

144.9

21.5

8.3

— 234

14.0

— 164

477

2.94

(29.0)

2.1

238

9.9

219

14.2

160

478

28,877.9

216

15.2

21.7

31.4

1.49

8.0

12.7

36.4

15.4

136

479

24,300.8

235

16.6

5.2

168

14.5

179

5.59

20.7

11.3

101

26.1

117

20.7

480

57,208.0

121

21.8

5.7

149

10.2

253

3.28

(10.1)

3.5

218

26.9

112

17.5

102

481

23,808.9

241

13.3

113

6.2

134

19.0

146

2.78

6.1

7.3

162

14.2

185

17.4

103

482

483

377

484

45,475.4

147

(3.1)

436

(5.6) 462

14,960.0

303

14.4

100

4.0

(44.2)

455

(2.63)

—

208

7.9

290

1.59

(32.3)

(2.8)

38,935.9

170

54.9

6,359.8

393

7.1

214

27.3

40.7

10.30

209.3

—

4.8

178

12.7

209

1.95

15.4

4.4

4,598.0

418

4.7

42,326.3

155

17.2

274

3.4

235

24.4

111

1.93

75.5

14.9

4.0

207

9.1

274

8.98

(46.6)

10.4

120

270 209

160.2

—

1.3

288

(0.6)

33.7

24.3

485

(8.1)

358

5.9

319

486

18.5

155

16.6

114

487

22.4

134

19.6

488

333

5.5

247

5.4

157

24.1

112

2.34

16.4

5.3

193

20.6

142

18.1

489

249

14.2

101

10.4

17.4

158

2.52

52.7

13.7

8.0

235

12.9

186

490

3,087.5

441

(10.7)

470

(21.7) 496

3,716.5

430

5.1

261

6.8

2,353.1

450

3.2

310

13,202.2

320

4.1

291

(70.5)

467

(6.25)

(802.2)

—

51.8

2.4

355

491

123

14.8

176

2.32

39.8

—

(5.4)

337

5.1

332

492

8.9

20.6

132

4.44

115.5

2.1

293

7.7

294

1.62

(60.0)

— (5.1)

276

37.6

—

(8.4)

360

10.2

237

493

494

360.2

472

0.6

375

4.0

202

30.2

4.31

1,290.3

—

240.6

—

495

3,452.5

435

2.2

338

3.8

219

457.0

3.09

—

90.1

—

496

16,176.4

294

15.1

10.9

338.4

3.52

(22.0)

12.0

5,067.6

411

(12.7)

475

(3.9) 450

—

(9.71)

(344.0)

—

289.9

473

1.8

349

3.1

245

—

55,884.8

123

33.1

14.3

113.3

32,686,312.5

11.0

211

3.7

347

497

15.7

176

9.1

266

498

1.36

—

(8.1)

290

(41.9)

456

(17.1)

403

499

9.39

26.5

15.9

23.4

129

28.7

500

F O R T U N E J U N E /J U LY 2 0 2 1 F 2 0

11,949.9 22,016.4

CONTENT FROM ZUORA

SUBSCRIBING TO PROSPERITY Outcomes, not product sales, emerge as drivers of recurring revenue.

LAST YEAR, AS THE PANDEMIC PUMMELED sales in the travel, restaurant, and other industries, the marketplace was kind to companies like video streaming services, e-learning businesses, and communications software vendors—in other words, companies with subscription-based revenue models. Fueled by strong customer relationships, these outﬁts saw revenues grow seven times faster than the S&P 500 in the fourth quarter, according to the Subscription Economy Index, a report that tracks the emergence of the global subscription economy. Now analysts say the power of recurring revenue has plenty more room to run. Investment bank UBS projects the $650 billion subscription economy will become a $1.5 trillion market by 2025.

“SUBSCRIPTION-BASED COMPANIES ARE DESIGNING THE SERVICES AND EXPERIENCES THAT DELIVER THE OUTCOMES THAT WE’RE ACTUALLY LOOKING FOR.” Tien Tzuo CEO and founder, Zuora

This is not a pandemic trend but rather the end of ownership and the rise of usership, according to Tien Tzuo, CEO and founder of Zuora, a Redwood City, Calif.–based tech company that helps clients create and manage subscriptions. Usership is accelerating because subscriptions give consumers what they want: access to powerful tools and experiences without the headaches that come with ownership, storage, maintenance, and depreciation. Customers don’t just want to own products, Tzuo says—they want results. “We want to get from point A to point B; we want to be entertained,” Tzuo says. “Subscriptionbased companies are designing the services and experiences that deliver the outcomes that we’re actually looking for.” Even manufacturers are becoming subscription companies. A well-known guitar maker provides subscribers with video content to help guitarists play better. A multinational tech company offers a network-as-a-service model that delivers enterprise network services virtually on a subscription basis. A large, U.S.-based auto manufacturer is incubating subscription ventures in insurance, commercial delivery services, and other sources of recurring revenue. And GoPro is going well beyond making versatile digital cameras by embracing this new revenue stream. The San Mateo, Calif.– based company leverages Zuora’s platform for subscription billing. “Our subscription ties together the complete GoPro experience,” says Aimée Lapic, the company’s chief digital and marketing officer. “From offering early access and the best value on our flagship cameras and accessories to introducing new editing and multi-platform management features, we are committed to using the GoPro subscription to deliver the best possible experience to our customers.” As people demonstrate they’re eager to pay for outcomes rather than mere products, companies across industries are demonstrating they can deliver—even if that means adopting new business models. “This is the most important trend of our time,” Tzuo says of the seismic shift to the subscription economy. “If your company doesn’t recognize that, then you’re in trouble.” ■

THE LISTS

FORTUNE 500

TURNOVER

ARRIVALS AND DEPARTURES NEWCOMERS AND RETURNEES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

ACADEMY SPORTS AND OUTDOORS ALEXION PHARMACEUTICALS A-MARK PRECIOUS METALS* ARCONIC BIG LOTS* BOISE CASCADE* CACI INTERNATIONAL CAMPING WORLD HOLDINGS CARRIER GLOBAL* CARVANA CHEWY CHIPOTLE MEXICAN GRILL ELECTRONIC ARTS* EQUINIX FASTENAL GLOBAL PAYMENTS HASBRO* JEFFERIES FINANCIAL GROUP* KBR* KLA LPL FINANCIAL HOLDINGS MCCORMICK* MDU RESOURCES GROUP* MOODY’S NASDAQ OTIS WORLDWIDE * PATTERSON* T. ROWE PRICE ROCKET COMPANIES ROPER TECHNOLOGIES* RPM INTERNATIONAL* SELECT MEDICAL HOLDINGS SINCLAIR BROADCAST GROUP SPROUTS FARMERS MARKET SQUARE TAYLOR MORRISON HOME VERTEX PHARMACEUTICALS VIATRIS YUM BRANDS*

500 rank 2020

1,000 rank 2019

2020 REVENUES

475 459 495 476 449 493 473 496 171 483 403 464 485 461 479 394 494 419 470 468 466 482 486 500 480 236 491 447 194 488 489 487 465 437 323 452 448 254 478

— 547 565 — 526 579 549 555 — 651 559 506 550 509 525 553 574 520 501 588 503 523 524 561 620 — 507 504 — 518 508 515 622 502 575 567 626 — 505

5,689.2 6,069.9 5,461.1 5,675.0 6,199.2 5,474.8 5,720.0 5,446.6 17,456.0 5,586.6 7,146.3 5,984.6 5,537.0 5,998.5 5,647.3 7,423.6 5,465.4 6,955.9 5,767.0 5,806.4 5,871.6 5,601.3 5,532.8 5,371.0 5,627.0 12,756.0 5,490.0 6,206.7 15,980.7 5,527.1 5,507.0 5,531.7 5,943.0 6,468.8 9,497.6 6,129.3 6,205.7 11,946.0 5,652.0

$ millions

DISPLACED FROM LIST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

AK STEEL HOLDING ALASKA AIR GROUP ALLIANCE DATA SYSTEMS AMERICAN AXLE & MANUFACTURING ANIXTER INTERNATIONAL APA CAESARS HOLDINGS CALPINE CHESAPEAKE ENERGY DEAN FOODS DEVON ENERGY DILLARD’S ENLINK MIDSTREAM EXPEDIA GROUP FORTIVE GAMESTOP ROBERT HALF INTERNATIONAL HD SUPPLY HOLDINGS HERTZ GLOBAL HOLDINGS HESS HILTON WORLDWIDE HOLDINGS HOWMET AEROSPACE HUNTINGTON BANCSHARES JETBLUE AIRWAYS LAS VEGAS SANDS LIVE NATION ENTERTAINMENT MAHWAH BERGEN RETAIL GROUP MGM RESORTS INTERNATIONAL J.C. PENNEY RAYTHEON RUSH ENTERPRISES SIMON PROPERTY GROUP SPIRIT AEROSYSTEMS HOLDINGS LEVI STRAUSS TAPESTRY TD AMERITRADE HOLDING TECH DATA TRAVELCENTERS OF AMERICA WYNN RESORTS

1,000 rank 2020

500 rank 2019

2019 REVENUES

— 661 569 547 — 595 — — 513 — 520 585 630 515 556 521 519 — 508 543 596 507 510 752 654 994 616 517 — — 545 560 684 580 528 — — 540 940

467 360 456 460 359 465 363 319 373 421 419 468 483 263 422 464 482 478 326 461 338 226 500 394 235 275 473 249 286 108 492 497 406 495 485 486 90 480 454

6,359.4 8,781.0 6,580.9 6,530.9 8,845.6 6,411.0 8,742.0 10,072.0 8,489.0 7,328.7 7,372.0 6,343.2 6,052.9 12,067.0 7,326.1 6,466.0 6,074.4 6,146.0 9,779.0 6,510.0 9,452.0 14,192.0 5,655.0 8,094.0 13,739.0 11,548.0 6,242.8 12,899.7 11,167.0 29,176.0 5,809.8 5,755.2 7,863.1 5,763.1 6,027.1 6,016.0 36,998.4 6,117.4 6,611.1

$ millions

* A R E T U R N E E T O T H E F O R T U N E 5 0 0 L I S T.

THE TOP 50 MONEY LOSERS

F 2 1 F O R T U N E J U N E /J U LY 2 0 2 1

Company EXXON MOBIL OCCIDENTAL PETROLEUM DELTA AIR LINES BOEING BAKER HUGHES MARATHON PETROLEUM BRISTOL-MYERS SQUIBB AMERICAN AIRLINES GROUP UNITED AIRLINES HOLDINGS UBER TECHNOLOGIES OVINTIV AMERICAN INTERNATIONAL GROUP CHEVRON DXC TECHNOLOGY AT&T PHILLIPS 66 MACY’S *A L S O LO S T M O N E Y I N 2 0 1 9.

500 rank 10 183 178 54 140 32 75 174 200 281 458 72 27 152 11 48 164

L0SS $ millions 22,440.0 14,831.0 * 12,385.0 11,873.0 * 9,940.0 9,826.0 9,015.0 8,885.0 7,069.0 6,768.0 * 6,097.0 5,944.0 5,543.0 5,369.0 5,176.0 3,975.0 3,944.0

Company CARDINAL HEALTH RAYTHEON TECHNOLOGIES AMERISOURCEBERGEN SOUTHWEST AIRLINES DUPONT HALLIBURTON WALT DISNEY CONOCOPHILLIPS NOV SINCLAIR BROADCAST GROUP ICAHN ENTERPRISES TARGA RESOURCES TENNECO LIBERTY MEDIA VALERO ENERGY PBF ENERGY PG&E

500 rank 14 57 8 336 144 211 50 156 457 465 453 364 199 326 53 203 160

L0SS $ millions 3,696.0 3,519.0 3,408.7 3,074.0 2,951.0 2,945.0 * 2,864.0 2,701.0 2,542.0 * 2,414.0 1,653.0 * 1,553.9 * 1,521.0 * 1,421.0 1,421.0 1,392.4 1,318.0 *

Company FORD MOTOR NEWS CORP. GOODYEAR TIRE & RUBBER LUMEN TECHNOLOGIES ECOLAB UNITED STATES STEEL PVH BRIGHTHOUSE FINANCIAL COTY OLIN MOLSON COORS BEVERAGE LOEWS NEW YORK LIFE INSURANCE CENTERPOINT ENERGY NEWELL BRANDS WESTROCK

500 rank 21 337 246 139 237 310 404 353 426 472 314 239 67 342 325 170

L0SS $ millions 1,279.0 1,269.0 1,254.0 * 1,232.0 * 1,205.1 1,165.0 * 1,136.1 1,061.0 * 1,006.7 * 969.9 * 949.0 931.0 822.3 773.0 770.0 690.9

THE LISTS

FORTUNE 500

NOTES

DEFINITIONS AND EXPLANATIONS

BALANCE SHEET Assets are the company’s year-end total. Total stockholders’ equity is the sum of all capital stock, paid-in capital, and retained earnings at the company’s year-end. Excluded is equity attributable to noncontrolling interests. Also excluded is redeemable preferred stock whose redemption is either mandatory or outside the company’s control. Dividends paid on such stock have been subtracted from the profit figures used in calculating return on equity.

FOOTNOTES

¶ C E P

METHODOLOGY Companies are ranked by total

EMPLOYEES The figure shown is a fiscal year-end

revenues for their respective fiscal years. Included in the survey are companies that are incorporated in the U.S., operate in the U.S., and file financial statements with a government agency. This includes private companies and cooperatives that file a 10-K or a comparable financial statement with a government agency, and mutual insurance companies that file with state regulators. It also includes companies that file with a government agency but are owned by private companies, domestic or foreign, that do not file such financial statements. Excluded are private companies not filing with a government agency; companies incorporated outside the U.S.; and U.S. companies consolidated by other companies, domestic or foreign, that file with a government agency. Also excluded are companies that failed to report full financial statements for at least three-quarters of the current fiscal year. Percent change calculations for revenue, net income, and earnings per share are based on data as originally reported. They are not restated for mergers, acquisitions, or accounting changes. The only changes to the prior years’ data are for significant restatement owing to reporting errors that require a company to file an amended 10-K.

number as published by the company in its annual report. Where the breakdown between full- and parttime employees is supplied, a part-time employee is counted as one-half of a full-time employee.

REVENUES Revenues are as reported, including revenues from discontinued operations when published. If a spinoﬀ is on the list, it has not been included in discontinued operations. Revenues for commercial banks include interest and noninterest revenues. Revenues for insurance companies include premium and annuity income, investment income, and capital gains or losses, but exclude deposits. Revenue figures for all companies include consolidated subsidiaries and exclude excise taxes. Data shown are for the fiscal year ended on or before Jan. 31, 2021. Unless otherwise noted, all figures are for the year ended Dec. 31, 2020.

2 3 4 5 6

EARNINGS PER SHARE The figure shown for each company is the diluted earnings-per-share figure that appears on the income statement. Per-share earnings are adjusted for stock splits and stock dividends. Though earnings-per-share numbers are not marked by footnotes, if a company’s profits are footnoted it can be assumed that earnings per share is aﬀected as well. The five-year and 10-year earnings-growth rates are the annual rates, compounded.

8 9 10 11 12 13

TOTAL RETURN TO INVESTORS Total return to investors includes both price appreciation and dividend yield to an investor in the company’s stock. The figures shown assume sales at the end of 2020 of stock owned at the end of 2010, 2015, and 2019. It has been assumed that any proceeds from cash dividends and stock received in spinoﬀs were reinvested when they were paid. Returns are adjusted for stock splits, stock dividends, recapitalizations, and corporate reorganizations as they occurred; however, no eﬀort has been made to reflect the cost of brokerage commissions or of taxes. Total-return percentages shown are the returns received by the hypothetical investor described above. The five-year and 10-year returns are the annual rates, compounded.

15 16 17

19 20

21 22 23 24 25 26

MEDIANS No attempt has been made to calculate median figures in the tables for groups of fewer than four companies. The medians for profit changes from 2019 to 2020 do not include companies that lost money in 2019 or lost money in both 2019 and 2020, because no meaningful percentage changes can be calculated in such cases.

F 2 2 F O R T U N E J U N E /J U LY 2 0 2 1

PROFITS Profits are shown after taxes, extraordinary credits or charges, cumulative eﬀects of accounting changes, and noncontrolling interests (including subsidiary preferred dividends), but before preferred dividends of the company. Figures in parentheses indicate a loss. Profit declines of more than 100% reflect swings from 2019 profits to 2020 losses. Profits for real estate investment trusts, partnerships, and cooperatives are reported but are not comparable with those of the other companies on the list because they are not taxed on a comparable basis. Profits for mutual insurance companies are based on statutory accounting.

CREDITS This Fortune 500 Directory was prepared under the direction of list editor Scott DeCarlo. Income statement and balance sheet data provided by the companies were reviewed and verified against published earnings releases, 10-K filings, and annual reports by accounting specialist Rhona Altschuler. Markets editor Kathleen Smyth used those same sources to check the data for earnings per share. In addition, we used data provided by Refinitiv (an LSEG business) and S&P Global Market Intelligence to calculate total return and market capitalization. The data verification process was aided substantially by information provided by S&P Global Market Intelligence.

33 34

36 37 38

39 40 41

Includes revenues from discontinued operations. A cooperative. Excise taxes have been deducted. A partnership. A real estate investment trust. Figures are for fiscal year ended Jan. 31, 2021. Figures are for fiscal year ended Sept. 30, 2020. Figures are for fiscal year ended March 31, 2020. Figures are for fiscal year ended Aug. 31, 2020. Figures are for fiscal year ended June 30, 2020. Acquired HD Supply Holdings (2019 rank: 478), Dec. 24, 2020. Company’s senior preferred stock is owned by the U.S. Treasury, which also holds a warrant to purchase 79.9% of the common stock. Acquired Noble Energy (2019 rank: 602), Oct. 5, 2020. Figures are for fiscal year ended May 31, 2020. Figures are for fiscal year ended Feb. 29, 2020. Went public, June 26, 2020. Figures are for fiscal year ended Oct. 31, 2020. Spun off Carrier Global (2020 rank: 171) and Otis Worldwide (2020 rank: 236), April 3, 2020. Changed name from INTL FCStone, July 6, 2020. Company reports sale of physical commodities on a gross basis. Acquired E*Trade Financial (2019 rank: 755), Oct. 2, 2020. Figures are for fiscal year ended July 31, 2020. Acquired National General Holdings (2019 rank: 535), Jan. 4, 2021. A mutual company, not a stock company. It is grouped with stock companies because it reports according to Generally Accepted Accounting Principles. Spun off Viatris (2020 rank: 254), Nov. 16, 2020. Not a mutual company, but reports financial data according to statutory accounting. Figures are for fiscal year ended Nov. 30, 2020. Spun off Envista Holdings (2020 rank: 900), Dec. 18, 2019. Changed name from CenturyLink, Jan. 22, 2021. Spun off Perspecta (2020 rank: 575), May 31, 2018. Acquired Concho Resources (2019 rank: 585), Jan. 15, 2021. Spun off from Raytheon Technologies (2020 rank: 57), April 3, 2020. Went public, Aug. 6, 2020. Acquired Anixter International (2019 rank: 359), June 22, 2020. Acquired TD Ameritrade Holding (2019 rank: 486), Oct. 6, 2020. Spun off from Pfizer (2020 rank: 77), Nov. 16, 2020. After spinoff, executed a reverse merger of Upjohn and Mylan with Upjohn representing the legal acquirer and Mylan the accounting acquirer. Changed name from Vistra Energy, July 2, 2020. Net income before allocations to partners. Total partnership capital subject to mandatory redemption. Spun off Covetrus (2020 rank: 593), Feb. 7, 2019. Reorganized as a holding company, June 30, 2020. Prior year’s figures are for Office Depot, now a subsidiary of the company. Consists of a nonpublic reciprocal insurer and a publicly held management company. Acquired BMC Stock Holdings (2019 rank: 677), Jan. 1, 2021. Figures are for fiscal year ended April 30, 2020. Incorporated in the U.S. and headquartered in Sweden. Its North American headquarters are in Auburn Hills, Mich. Changed name from National Oilwell Varco, Jan. 1, 2021. Went public, Oct. 2, 2020. Spun off from Howmet Aerospace (2020 rank: 507), April 1, 2020. Acquired Legg Mason (2019 rank: 801), July 31, 2020.

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2021

Oﬀicial Analytics Partner of the Fortune 500

THE LISTS

T H E C O R P O R AT I O N S BY P E R F O R M A N C E

HOW THE COMPANIES STACK UP 0

The impact of COVID-19 can be seen in the numbers: Overall revenue for the 500 fell 3%, and total profits dropped 30%, the deepest decline since the Great Recession. But amid the doldrums, some companies shone. AMD shot up 139 spots to No. 309, the biggest leap on the list. And Tesla richly rewarded its shareholders.

NUMBER OF COMPANIES PER STATE BRIDGEPORT: 9 THE SIZE OF EACH CIRCLE DENOTES THE NUMBER OF COMPANIES PER METROPOLITAN AREA

SEATTLE: 7

MILWAUKEE: 6

CHICAGO: 36

BOSTON: 12 NEW YORK: 63 DETROIT: 9

PROVIDENCE: 6

MINNEAPOLIS: 16

SAN FRANCISCO: 20

DENVER: 10

SAN JOSE: 17

ST. LOUIS: 9

CINCINNATI: 7

PHILADELPHIA: 13

PITTSBURGH: 9

WASHINGTON, D.C.: 17 RICHMOND: 7 DALLAS: 22

LOS ANGELES: 12

CHARLOTTE: 8

PHOENIX: 8

HOUSTON: 23

F 2 3 F O R T U N E J U N E /J U LY 2 0 2 1

WHERE THE FORTUNE 500 COMPANIES ARE LOCATED The companies on this year’s list are based in 236 cities spread across 37 states. After six years on top, New York dropped into a tie for No. 1 with California as the states that are home to the most Fortune 500 companies, with 53 each, followed by Texas with 49. But the Golden State beat all contenders in total revenue, with $1.6 trillion. N.Y.C., home to 44 companies, is still the most preferred HQ.

ATLANTA: 16

MIAMI: 10

LARGEST GAIN: ARIZONA, MARYLAND

CHANGE IN STATE’S TOTAL FROM LAST YEAR GAIN FLAT LOSS LARGEST LOSS: NEVADA

GRAPHICS BY NICOLAS RAPP

FORTUNE 500

PRESCRIPTION FOR GROWTH THE PANDEMIC AND RESULTING PUBLIC HEALTH CARE CRISIS DIDN’T FAZE CENTENE, THE MASSIVE PROVIDER OF MEDICAID AND OTHER GOVERNMENT-SUBSIDIZED HEALTH PLANS. THE INSURER ADDED 10.3 MILLION NEW MEMBERS IN 2020 AND GREW SALES BY NEARLY 50%. DIGITAL FURNITURE RETAILER WAYFAIR RODE THE WORK-FROM-HOME WAVE, WHILE E-MERCHANT CHEWY GOT A BOUNCE FROM THE PANDEMIC PET BOOM.

FASTEST-GROWING COMPANIES 500 revenues rank

2020 % growth in EPS

137

2,820.0

AMAZON.COM

2,811.8

NETFLIX

495

1,290.3

SPARTANNASH

329

1,225.0

CAMPBELL SOUP

335

665.7

ADVANCED MICRO DEVICES

309

MAGELLAN HEALTH

390

EBAY

276

ALTICE USA

306

GROWTH IN PROFITS 1 YEAR Rank 1

SALESFORCE.COM

MCKESSON

A-MARK PRECIOUS METALS

4 5 6 7 8 9

500 revenues rank

2010–20 % annual growth in EPS

460

45.4

500 revenues rank

2015–20 % annual growth in EPS

101.8

HUNTSMAN

115

85.1

LITHIA MOTORS

231

43.7

MAGELLAN HEALTH

390

65.4

SALESFORCE.COM

137

43.6

HUNTSMAN

460

65.1

STONEX GROUP

ADOBE

234

54.3

GRAPHIC PACKAGING HOLDING

586.7

CELANESE

477

53.0

AMAZON.COM

557.0

NEWMONT

273

52.2

NVIDIA

277.5

FACEBOOK

257.1

NVIDIA

5 YEARS Rank

10 YEARS Rank

39.9

435

34.9

32.4

184

32.0

50.9

LENNAR

129

31.7

184

44.9

OLD REPUBLIC INTERNATIONAL

401

30.6

115

30.5

PROCTER & GAMBLE

246.9

BERRY GLOBAL GROUP

261

42.7

NETFLIX

AGCO

331

246.6

BIG LOTS

449

41.9

ASBURY AUTOMOTIVE GROUP

GLOBAL PARTNERS

361

238.3

EBAY

276

40.9

ALLSTATE

ELECTRONIC ARTS

485

209.3

REGENERON PHARMACEUTICALS

354

40.8

MERCK

MURPHY USA

322

169.1

INTUIT

380

40.1

ACTIVISION BLIZZARD

405

27.7

26.0

25.8

373

23.9

BIG LOTS

449

161.5

DAVITA

271

38.2

MOLINA HEALTHCARE

155

23.9

CELANESE

477

144.9

ZOETIS

431

38.1

D.R. HORTON

148

23.6

FEDEX

141.4

MASCO

398

35.1

O’REILLY AUTOMOTIVE

268

23.1

VERTEX PHARMACEUTICALS

448

128.2

PROGRESSIVE

35.1

GROUP 1 AUTOMOTIVE

286

22.2

BJ’S WHOLESALE CLUB

198

124.4

DOLLAR TREE

111

35.0

ADOBE

234

22.1

BOISE CASCADE

493

115.5

MOLINA HEALTHCARE

155

34.2

CELANESE

477

21.5

(13.5)

THE 500 MEDIAN

7.6

THE 500 MEDIAN

8.0

THE 500 MEDIAN

500 revenues rank

2020 % growth in revenues

500 revenues rank

2015–20 % annual growth in revenues

500 revenues rank

2010–20 % annual growth in revenues

ROCKET COMPANIES

194

204.3

TESLA

100

50.8

FACEBOOK

45.9

SQUARE

323

101.5

WAYFAIR

217

44.4

CENTENE

37.9

TRUIST FINANCIAL

119

66.6

VERTEX PHARMACEUTICALS

448

43.2

SALESFORCE.COM

137

29.1

STONEX GROUP

64.6

CHARTER COMMUNICATIONS

37.6

NETFLIX

115

27.7

BRISTOL-MYERS SQUIBB

62.6

CENTENE

37.3

AMAZON.COM

27.4

WAYFAIR

217

55.0

FACEBOOK

36.8

ALLEGHANY

339

24.6

NVIDIA

184

52.7

CIGNA

33.5

CIGNA

GLOBAL PAYMENTS

394

51.1

NETFLIX

115

29.8

VERTEX PHARMACEUTICALS

448

49.1

AMAZON.COM

48.9

L3HARRIS TECHNOLOGIES

GROWTH IN REVENUES 1 YEAR Rank

CENTENE

5 YEARS Rank

10 YEARS Rank

22.4

LENNAR

129

22.0

29.3

UNITED NATURAL FOODS

107

21.7

163

29.1

CHARTER COMMUNICATIONS

21.2

WESCO INTERNATIONAL

245

47.5

NVIDIA

184

27.2

ALPHABET

CHEWY

403

47.4

DCP MIDSTREAM

442

27.1

LITHIA MOTORS

20.1 19.9

19.4

FISERV

205

45.8

UNITED NATURAL FOODS

107

26.7

ENERGY TRANSFER

ADVANCED MICRO DEVICES

309

45.0

SALESFORCE.COM

137

26.1

WESTROCK

170

19.3

CARVANA

483

41.8

FISERV

205

23.1

JONES LANG LASALLE

186

19.0

L3HARRIS TECHNOLOGIES

163

41.5

JONES LANG LASALLE

186

22.7

WESTINGHOUSE AIR BRAKE TECH.

384

17.5

SINCLAIR BROADCAST GROUP

465

40.2

BEACON ROOFING SUPPLY

420

22.5

MOLINA HEALTHCARE

155

16.9

ABBVIE

AMAZON.COM

NASDAQ

THE 500 MEDIAN

37.7

MOLSON COORS BEVERAGE

314

22.0

TOLL BROTHERS

411

16.8

37.6

ADOBE

234

21.8

LAM RESEARCH

304

16.8

480

32.0

SINCLAIR BROADCAST GROUP

465

21.8

LKQ

266

16.8

(1.5)

THE 500 MEDIAN

3.8

THE 500 MEDIAN

4.1

F O R T U N E J U N E /J U LY 2 0 2 1 F 2 4

9 231

THE LISTS

T H E C O R P O R AT I O N S BY P E R F O R M A N C E

THE RICH GET RICHER THE 25 MOST PROFITABLE COMPANIES ON THIS YEAR’S LIST ACCOUNTED FOR 58% OF TOTAL EARNINGS. LAST YEAR’S PROFIT CHAMPION, WARREN BUFFETT’S BERKSHIRE HATHAWAY, FELL TO THIRD PLACE AND IS THE ONLY NON-TECH NAME IN THE TOP FIVE. PRECIOUS METALS TRADER A-MARK GENERATED $5.46 BILLION IN REVENUES AND EARNED $30.5 MILLION WITH JUST 218 EMPLOYEES.

MOST PROFITABLE COMPANIES RETURN ON

2020 profits as % of revenues

RETURN ON

2020 profits as % of equity

500 revenues rank

2020 $ millions

57,411.0

ELECTRONIC ARTS

485

54.9

TENET HEALTHCARE

167

1,425.0

MICROSOFT

44,281.0

EBAY

276

49.9

O’REILLY AUTOMOTIVE

268

1,249.3

656.3

PROFITS Rank 1

APPLE

REVENUES Rank

500 revenues rank

SHAREHOLDERS’ EQUITY Rank 500 revenues rank

BERKSHIRE HATHAWAY

42,521.0

VISA

133

49.7

HCA HEALTHCARE

ALPHABET

40,269.0

VERTEX PHARMACEUTICALS

448

43.7

MASCO

398

627.7

FACEBOOK

29,146.0

MASTERCARD

201

41.9

S&P GLOBAL

393

459.5

JPMORGAN CHASE

29,131.0

REGENERON PHARMACEUTICALS

354

41.3

CAMPING WORLD HOLDINGS

496

457.0

AMAZON.COM

21,331.0

ADOBE

234

40.9

LOWE’S

406.1

INTEL

20,899.0

TEXAS INSTRUMENTS

210

38.7

HOME DEPOT

390.0

BANK OF AMERICA

17,894.0

T. ROWE PRICE

447

38.2

KIMBERLY-CLARK

158

375.7

VERIZON COMMUNICATIONS

17,801.0

CELANESE

477

35.1

COLGATE-PALMOLIVE

188

362.7

497

338.4

204.4

UNITEDHEALTH GROUP

15,403.0

FACEBOOK

33.9

NETAPP

JOHNSON & JOHNSON

14,714.0

MOODY’S

500

33.1

UNITED PARCEL SERVICE

WALMART

PROCTER & GAMBLE

13,510.0

SEMPRA ENERGY

255

32.9

EBAY

276

159.1

13,027.0

S&P GLOBAL

393

31.4

ALTRIA GROUP

138

157.3

198

131.8

HOME DEPOT

12,866.0

PNC FINANCIAL SVCS. GROUP

120

31.3

BJ’S WHOLESALE CLUB

FANNIE MAE

11,805.0

MICROSOFT

31.0

DELL TECHNOLOGIES

131.1

CISCO SYSTEMS

11,214.0

BLACKROCK

192

30.4

LOCKHEED MARTIN

113.6

CITIGROUP

11,047.0

BIOGEN

228

29.8

MOODY’S

500

113.3

MORGAN STANLEY

10,996.0

AMGEN

112

28.6

ELI LILLY

118

109.8

133

10,866.0

PHILIP MORRIS INTERNATIONAL

101

28.1

CLOROX

427

103.4

VISA

THE 500 MEDIAN

683.7

THE 500 MEDIAN

5.5

10.8

MOST BANG FOR THE BUCK REVENUES PER

F 2 5 F O R T U N E J U N E /J U LY 2 0 2 1

DOLLAR OF ASSETS Rank

REVENUES PER 500 revenues rank

2020 $

DOLLAR OF EQUITY Rank

REVENUES PER 500 revenues rank

2020 $

EMPLOYEE Rank

500 revenues rank

2020 $ millions

A-MARK PRECIOUS METALS

495

7.2

TENET HEALTHCARE

167

630.0

A-MARK PRECIOUS METALS

495

25.1

CORE-MARK HOLDING

224

7.0

CAMPING WORLD HOLDINGS

496

203.4

STONEX GROUP

18.4

WORLD FUEL SERVICES

147

4.5

UNITED PARCEL SERVICE

128.8

NGL ENERGY PARTNERS

151

14.1

AMERISOURCEBERGEN

4.3

HCA HEALTHCARE

90.1

FANNIE MAE

13.8

CHEWY

403

4.1

CARDINAL HEALTH

85.5

FREDDIE MAC

9.6

SPARTANNASH

329

4.1

O’REILLY AUTOMOTIVE

268

82.7

AMERISOURCEBERGEN

8.8

4.0

STONEX GROUP

70.5

CHENIERE ENERGY

328

6.2

3.8

LOWE’S

62.4

KKR

316

6.1

3.8

A-MARK PRECIOUS METALS

495

54.1

BRIGHTHOUSE FINANCIAL

353

6.1

322

3.5

BJ’S WHOLESALE CLUB

198

48.3

VALERO ENERGY

6.0 5.3

STONEX GROUP

MCKESSON

CARDINAL HEALTH

MURPHY USA

UNITED NATURAL FOODS

107

3.5

SYSCO

45.7

PLAINS GP HOLDINGS

127

GLOBAL PARTNERS

361

3.3

MCKESSON

45.4

NORTHWESTERN MUTUAL

5.1

PERFORMANCE FOOD GROUP

114

3.2

HOME DEPOT

40.0

WORLD FUEL SERVICES

147

4.7

C.H. ROBINSON WORLDWIDE

191

3.2

DELL TECHNOLOGIES

38.0

PHILLIPS 66

4.6

WAYFAIR

217

3.1

MASCO

398

37.4

NEW YORK LIFE INSURANCE

4.1

NGL ENERGY PARTNERS

151

3.0

NORDSTROM

289

35.1

REINSURANCE GROUP

207

4.1

COSTCO WHOLESALE

3.0

ROCKET COMPANIES

194

32.6

PBF ENERGY

203

4.1

BJ’S WHOLESALE CLUB

198

2.9

RITE AID

132

32.5

ENTERPRISE PRODUCTS

105

3.8

GRAYBAR ELECTRIC

399

2.8

KIMBERLY-CLARK

158

30.6

EOG RESOURCES

285

3.8

BOISE CASCADE

493

2.8

ALBERTSONS

27.4

PIONEER NATURAL RESOURCES

428

THE 500 MEDIAN

0.6

THE 500 MEDIAN

2.0

THE 500 MEDIAN

3.6 0.6

FORTUNE 500

BIG TECH = BIG MONEY INVESTORS LOVE TECHNOLOGY. FOUR OF THE FIVE COMPANIES WITH THE LARGEST MARKET VALUE ON THIS YEAR’S LIST ARE WORTH MORE THAN $1 TRILLION, AND SOCIAL MEDIA GIANT FACEBOOK IS EDGING CLOSER TO THAT MARK. ELON MUSK AND HIS ELECTRIC-CAR MAKER, TESLA, CONTINUE TO REWARD SHAREHOLDERS, MEANWHILE, WITH A SCORCHING AVERAGE ANNUAL RETURN OF 63% OVER THE PAST DECADE.

BIGGEST COMPANIES 500 revenues rank

3/31/21 $ millions

BY MARKET VALUE Rank 1

APPLE

MICROSOFT

BY EQUITY Rank

500 revenues rank

2020 $ millions

BY EMPLOYEES Rank

2020 number of 500 revenues rank employees

2,050,665.9

BERKSHIRE HATHAWAY

443,164.0

WALMART

2,300,000

1,778,228.2

JPMORGAN CHASE

279,354.0

AMAZON.COM

1,298,000

AMAZON.COM

1,558,069.6

BANK OF AMERICA

272,924.0

HOME DEPOT

504,800

ALPHABET

1,392,561.8

ALPHABET

222,544.0

KROGER

465,000

838,724.2

CITIGROUP

199,442.0

FEDEX

418,000

100

641,115.0

WELLS FARGO

184,887.0

TARGET

409,000

FACEBOOK

TESLA

BERKSHIRE HATHAWAY

JPMORGAN CHASE

VISA

JOHNSON & JOHNSON

WALMART

MASTERCARD

UNITEDHEALTH GROUP

WALT DISNEY

587,823.0

AT&T

161,673.0

UNITED PARCEL SERVICE

408,255

464,530.8

EXXON MOBIL

157,150.0

INTL. BUSINESS MACHINES

364,800

BERKSHIRE HATHAWAY

360,000

133

452,525.4

CHEVRON

131,688.0

432,685.3

FACEBOOK

128,290.0

STARBUCKS

382,642.8

STATE FARM INSURANCE

126,078.6

UNITEDHEALTH GROUP

201

353,686.7

MICROSOFT

118,304.0

351,725.0

MORGAN STANLEY

101,781.0

334,952.5

GOLDMAN SACHS GROUP

95,932.0

125

349,000

330,000

TJX

320,000

PEPSICO

291,000

COGNIZANT TECHNOLOGY

185

289,500 280,000

BANK OF AMERICA

333,788.4

AMAZON.COM

93,404.0

LOWE’S

PROCTER & GAMBLE

333,493.1

COMCAST

90,323.0

SYNNEX

117

277,900

NVIDIA

184

331,036.6

WALT DISNEY

83,583.0

WALGREENS BOOTS ALLIANCE

277,000

HOME DEPOT

328,775.4

INTEL

81,038.0

YUM CHINA HOLDINGS

363

271,000

PAYPAL HOLDINGS

134

284,408.3

WALMART

80,925.0

ALBERTSONS

270,000

INTEL

260,630.1

74,558.0

WELLS FARGO

268,531

THE 500 MEDIAN

METLIFE

THE 500 MEDIAN

23,975.7

THE 500 MEDIAN

6,314.0

24,850

BEST INVESTMENTS 500 revenues rank

2020 %

500 revenues rank

2010–20 annual rate %

TESLA

100

743.4

ADVANCED MICRO DEVICES

309

99.9

TESLA

100

63.0

OWENS & MINOR

345

423.6

SQUARE

323

75.5

NVIDIA

184

43.4

SQUARE

323

247.9

NVIDIA

184

74.5

LITHIA MOTORS

231

36.7

A-MARK PRECIOUS METALS

495

240.6

TESLA

100

71.2

NETFLIX

115

35.9

TOTAL RETURN TO SHAREHOLDERS 1 YEAR Rank

5 YEARS Rank

500 revenues rank

2015–20 annual rate %

10 YEARS Rank

CHEWY

403

210.0

LAM RESEARCH

304

45.3

BUILDERS FIRSTSOURCE

CARVANA

483

160.2

PAYPAL HOLDINGS

134

45.3

BROADCOM

350

35.4

121

34.4

COMMUNITY HEALTH SYSTEMS

259

156.2

BURLINGTON STORES

471

43.6

AMAZON.COM

33.6

QURATE RETAIL

216

153.8

APPLE

40.3

MASTERCARD

201

32.6

WAYFAIR

217

149.9

ADOBE

234

39.7

ADOBE

234

32.2

NVIDIA

184

122.3

MICRON TECHNOLOGY

135

39.6

CHARTER COMMUNICATIONS

PAYPAL HOLDINGS

134

116.5

APPLIED MATERIALS

176

37.8

389

37.8

37.0

31.4

REGENERON PHARMACEUTICALS

354

30.9

CINTAS

410

30.6

VISA

133

29.6

L BRANDS

257

108.0

NAVISTAR INTERNATIONAL

LITHIA MOTORS

231

100.8

AMAZON.COM

ADVANCED MICRO DEVICES

309

100.0

WAYFAIR

217

36.5

APPLE

FREEPORT-MCMORAN

215

99.2

NETFLIX

115

36.4

MOODY’S

500

28.7

CAMPING WORLD HOLDINGS

496

90.1

MICROSOFT

34.4

XPO LOGISTICS

190

27.8

UNITED NATURAL FOODS

107

82.3

XPO LOGISTICS

190

34.3

MOLINA HEALTHCARE

155

27.6

APPLE

82.3

KLA

468

33.3

UNITEDHEALTH GROUP

QUANTA SERVICES

278

77.8

INTUIT

380

32.8

QUALCOMM

124

77.3

CINTAS

410

32.6

THE 500 MEDIAN

8.1

THE 500 MEDIAN

11.0

27.5

ADVANCED MICRO DEVICES

309

27.3

S&P GLOBAL

393

THE 500 MEDIAN

27.0 12.0

F O R T U N E J U N E /J U LY 2 0 2 1 F 2 6

7 8

C O N T E N T F R O M AT L A S SI A N

POWERING PERFORMANCE THROUGH INTELLIGENT COLLABORATION Want to fuel a culture of innovation? Encourage employees to collaborate, take risks, and accept failure as part of the process. Over the past year, three COVID-19 vaccine makers used Atlassian’s products to manage their research and development activities.

AS GLOBAL PHARMACEUTICAL COMPANIES

teamed up last year to share knowledge and resources that were vital in developing, testing, and delivering COVID-19 vaccines in a matter of months, rather than years, the transformative power of collaborative innovation was on full display. So how can business leaders empower a culture of innovation and collaboration in their own companies? Certain elements are foundational, says Molly Hellerman, global head of innovation programs at enterprise software firm Atlassian. These include transparency about both successes and failures, operational principles that encourage collaboration across teams and business functions, the tools to support cross-functional teamwork, and an environment that protects those willing to challenge the status quo. “Leadership needs to believe that innovation and collaboration are critical,” Hellerman says. “They need to espouse it, model it, and show that failures are okay. They need to

highlight when we fail, highlight when we succeed, and make all of that okay.” Atlassian’s products, used by 83% of the Fortune 500, include agile project management system Jira and team workspace platform Confluence. Over the past year, three COVID-19 vaccine makers used Atlassian’s products to manage their research and development activities, says Hellerman. And one major U.S.-based airline used them to rethink and reorganize its aerodynamics, finances, and logistics when it transitioned from transporting passengers to transporting vaccines within a week. For Atlassian, innovation is second nature, says Hellerman. The firm hires people who possess a spirit of exploration and encourages managers to carve out time for generating new ideas. The company wrote an entire playbook of approaches to collaboration that include blueprints for a quarterly 24-hour hackathon, sessions for candid feedback among teams, and brainstorming sessions. Recent collaborations resulted in Point A, Atlassian’s program for developing homegrown products. Ideas successfully pitched to the selection panel (which includes the company’s cofounders) receive financial support for development, executed in collaboration with select Atlassian customers, and periodic checkpoints along the way. The program considered nearly three dozen projects over the past year—four of which will launch as new products in 2021. For all Atlassian employees, both successes and failures are measured, celebrated, and shared with the hope of sparking more new ideas. If employees are thinking big and bold enough, the company believes half of the Point A projects will fail—and that’s okay. “Not only should you measure success, but you need to understand what your KPI is for failure, because even though you might not have hit the success metric, you may not have failed,” says Hellerman. “It’s just a matter of letting the next person have a stab at it.” ■

THE LISTS

WHO’S ON TOP BY SECTOR

RANKED WITHIN INDUSTRIES INDUSTRY NO. RANK

500 rank

1 ADVERTISING, MARKETING

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK

5 AUTOMOTIVE RETAILING, SERVICES

2 COMPANIES

10 COMPANIES

OMNICOM GROUP

229

13,171

945

CARMAX

136

21,424

888

INTERPUBLIC GROUP

334

9,061

351

4 2

PENSKE AUTOMOTIVE GROUP

143

20,444

544

3 4

22,232

1,297

TOTAL

2 AEROSPACE AND DEFENSE

AUTONATION

145

20,390

382

2 7

LITHIA MOTORS

231

13,124

470

4 2

GROUP 1 AUTOMOTIVE

286

10,852

287

3 5

SONIC AUTOMOTIVE

308

9,767

(51)

(1) 8

(6)

ASBURY AUTOMOTIVE GROUP

405

7,132

254

4 3

CARVANA

483

5,587

(171)

(3) 9

(44)

CAMPING WORLD HOLDINGS

496

5,447

122

2 6

457

AVIS BUDGET GROUP

498

5,402

(684)

(13) 10

–

8 COMPANIES

LOCKHEED MARTIN

65,398

6,833

BOEING

58,158

(11,873)

114

(20) 8

—

RAYTHEON TECHNOLOGIES

56,587

(3,519)

(6) 7

(5)

GENERAL DYNAMICS

37,925

3,167

8 3

NORTHROP GRUMMAN

36,799

3,189

9 2

TOTAL

119,568

2,041

L3HARRIS TECHNOLOGIES

163

18,194

1,119

6 5

MEDIAN

10,309

270

TEXTRON

265

11,651

309

3 6

HUNTINGTON INGALLS INDUSTRIES 327

7 4

TOTAL MEDIAN

3 AIRLINES

9,361

696

294,073

(79)

37,362

908

6 BEVERAGES

AMERICAN AIRLINES GROUP

174

DELTA AIR LINES

UNITED AIRLINES HOLDINGS

200

SOUTHWEST AIRLINES

336

178

17,337

(8,885)

(51) 3

17,095 (12,385)

(72) 4 (807)

15,355

(7,069)

(46) 2

(119)

9,048

(3,074)

(34) 1

(35)

TOTAL

58,835 (31,413)

MEDIAN

16,225

(7,977)

(49)

33,014

7,747

11,618

1,325

11 2

314

9,654

(949)

(10) 4

(8)

359

8,344

(12)

(0) 3

(0)

TOTAL

62,630

8,111

MEDIAN

10,636

657

COCA-COLA KEURIG DR PEPPER

MOLSON COORS BEVERAGE

CONSTELLATION BRANDS

7 BUILDING MATERIALS, GLASS

NIKE

37,403

2,539

263

11,688

679

6 3

2 COMPANIES

BUILDERS FIRSTSOURCE

350

8,559

314

OWENS CORNING

413

7,055

(383)

(5) 2

(10)

15,614

(69)

TOTAL

5 COMPANIES

267

1 2

–

4 COMPANIES

4 APPAREL F 2 7 F O R T U N E J U N E /J U LY 2 0 2 1

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity $ mil. $ mil. Rank % Rank % Rank

The pandemic created winners and losers. While energy companies on the 500 lost a combined $51 billion—and hotels and airlines were hit hard, too—the number of financial companies rose from 91 to 94, reporting a total of $251 billion in profits.

8 CHEMICALS

14 COMPANIES

PVH

404

7,133

(1,136)

(16) 5

(24)

DOW

38,542

1,225

3 11

HANESBRANDS

432

6,664

(76)

(1) 4

(9)

32,184

5,384

17 4

RALPH LAUREN

450

6,160

384

6 2

DUPONT

144

20,397

(2,951)

(14) 13

69,048

2,391

SHERWIN-WILLIAMS

162

18,362

2,030

11 5

7,133

384

PPG INDUSTRIES

220

13,834

1,059

8 7

ECOLAB

237

12,749

(1,205)

(9) 12

AIR PRODUCTS & CHEMICALS

340

8,856

1,887

21 2

TOTAL MEDIAN

(8) 12

(20) 13 16

FORTUNE 500

FORTUNE 500 SECTORS RANKED BY PROFITS

NO. 1 TECHNOLOGY

NO. 2 FINANCIALS

ENERGY

NO. 3 HEALTH CARE

NO. 4 RETAILING

NO. 5 FOOD, BEVERAGES & TOBACCO BUSINESS SERVICES INDUSTRIALS TELECOM HOUSEHOLD PROD. CHEMICALS OTHER SECTORS

2011

2012

GRAPHIC BY NICOLAS RAPP

2013

2014

2015

2016

2017

2018

2019

2020

2021

F O R T U N E J U N E /J U LY 2 0 2 1 F 2 8

2010

THE LISTS

WHO’S ON TOP BY SECTOR

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

MOSAIC

346

8,682

666

8 6

EASTMAN CHEMICAL

355

8,473

478

6 8

WESTLAKE CHEMICAL

388

7,504

330

4 10

APPLE

274,515

57,411

HUNTSMAN

460

6,025

1,034

17 3

DELL TECHNOLOGIES

94,224

3,250

3 4

131

OLIN

472

5,758

(970)

(17) 14

(67) 14

56,639

2,844

5 3

–

CELANESE

477

5,655

1,985

RPM INTERNATIONAL

489

5,507

304

192,527

11,257

8,769

850

TOTAL MEDIAN

9 COMMERCIAL BANKS 1

JPMORGAN CHASE

11 COMPUTERS, OFFICE EQUIPMENT

HEWLETT PACKARD ENTERPRISE

106

26,982

(322)

(1) 6

(2)

WESTERN DIGITAL

182

16,736

(250)

(1) 8

(3)

XEROX HOLDINGS

415

7,022

192

3 5

NCR

446

6,207

(79)

(1) 7

(6)

NETAPP

497

5,412

819

15 2

338

TOTAL

129,503

29,131

487,737 63,865

MEDIAN 19

8 COMPANIES

6 9

19 COMPANIES 1

22 2

21,859

506

BANK OF AMERICA

93,753

17,894

19 9

CITIGROUP

88,839

11,047

12 16

WELLS FARGO

80,303

3,301

4 19

CATERPILLAR

41,748

2,998

7 2

GOLDMAN SACHS GROUP

53,498

9,459

18 12

DEERE

35,540

2,751

MORGAN STANLEY

52,047

10,996

21 5

PACCAR

159

18,729

1,298

7 3

4 3

12 CONSTRUCTION AND FARM MACHINERY

6 COMPANIES

CAPITAL ONE FINANCIAL

31,643

2,714

9 18

AGCO

331

9,150

427

5 5

U.S. BANCORP

113

25,241

4,959

20 7

NAVISTAR INTERNATIONAL

389

7,503

(347)

(5) 6

–

OSHKOSH

422

5 4

TRUIST FINANCIAL

119

24,427

4,482

18 10

PNC FINANCIAL SVCS. GROUP

120

24,039

7,517

BANK OF N.Y. MELLON

180

16,940

3,617

21 4

DISCOVER FINANCIAL SERVICES

233

12,953

1,141

9 17

STATE STREET

252

12,078

2,420

20 6

FIFTH THIRD BANCORP

358

8,402

1,427

17 13

6,857

325

TOTAL

119,526

7,452

MEDIAN

13,939

863

13 DIVERSIFIED FINANCIALS

14 COMPANIES

CITIZENS FINANCIAL GROUP

381

7,676

1,057

14 15

FANNIE MAE

106,437

11,805

11 6

KEYCORP

396

7,337

1,343

18 11

FREDDIE MAC

66,228

7,326

11 7

REGIONS FINANCIAL

434

6,655

1,094

16 14

STONEX GROUP

54,140

170

0 12

NORTHERN TRUST

443

6,301

1,209

19 8

AMERICAN EXPRESS

38,185

3,135

8 10

M&T BANK

444

6,281

1,353

22 3

MARSH & MCLENNAN

175

17,224

2,016

12 3

TOTAL

687,916

116,161

SYNCHRONY FINANCIAL

187

16,472

1,385

8 9

MEDIAN

24,039

3,301

10 COMPUTER SOFTWARE F 2 9 F O R T U N E J U N E /J U LY 2 0 2 1

INDUSTRY NO. RANK

5 COMPANIES

ROCKET COMPANIES

194

15,981

198

1 11

AMERIPRISE FINANCIAL

253

11,958

1,534

13 2

ALLY FINANCIAL

287

10,780

1,085

10 8

VOYA FINANCIAL

332

9,133

(206)

(2) 13

MICROSOFT

143,015

44,281

31 2

ARTHUR J. GALLAGHER

416

7,004

819

12 4

ORACLE

39,068

10,135

26 3

JEFFERIES FINANCIAL GROUP

419

6,956

775

11 5

(27) 14

SALESFORCE.COM

137

21,252

4,072

19 5

ICAHN ENTERPRISES

453

6,123

(1,653)

ADOBE

234

12,868

5,260

BLACKSTONE GROUP

454

6,102

1,045

INTUIT

380

7,679

1,826

24 4

TOTAL MEDIAN

MEDIAN

223,882 65,574 21,252

5,260

TOTAL

(49) 14 16

372,722 29,434 13,969

1,065

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FORTUNE 500

INDUSTRY NO. RANK

REVENUES PROFITS 500 rank $ mil. $ mil. Rank

14 DIVERSIFIED OUTSOURCING SERVICES

PROFITS StockAS % OF… holders’ Revenues equity % Rank % Rank

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK

18 ENTERTAINMENT

4 COMPANIES

9 COMPANIES

AUTOMATIC DATA PROCESSING

208

14,590

2,467

WALT DISNEY

65,388

(2,864)

(4) 7

(3)

ARAMARK

235

12,830

(462)

(4) 4

(17)

VIACOMCBS

109

26,186

2,422

9 5

CINTAS

410

7,085

876

12 2

NETFLIX

115

24,996

2,761

11 4

ABM INDUSTRIES

462

5,988

0 3

FOX

247

12,303

999

8 6

40,492

2,881

9,957

438

TOTAL MEDIAN

15 ELECTRONICS, ELECTRICAL EQUIPMENT 1

HONEYWELL INTERNATIONAL

DISCOVERY

290

10,671

1,219

11 3

LIBERTY MEDIA

326

9,363

(1,421)

(15) 8

(9)

8 4

ACTIVISION BLIZZARD

373

8,086

2,197

27 2

SINCLAIR BROADCAST GROUP

465

5,943

(2,414)

(41) 9

–

ELECTRONIC ARTS

485

4 COMPANIES

32,637

4,779

15 2

TOTAL MEDIAN

WHIRLPOOL

154

19,456

1,081

6 3

CORNING

277

11,303

512

5 4

ROCKWELL AUTOMATION

440

100

6,330

1,023

TOTAL

69,726

7,395

MEDIAN

15,380

1,052

16 ENERGY

5 6

19 FINANCIAL DATA SERVICES

WORLD FUEL SERVICES

147

20,358

110

1 5

1,219

9 COMPANIES

VISA

133

21,846

10,866

PAYPAL HOLDINGS

134

21,454

4,202

20 5

MASTERCARD

201

15,301

6,411

42 2

100

FISERV

205

14,852

958

6 7

FIDELITY NATL. INFO. SVCS.

241

12,552

158

1 9

SQUARE

323

9,498

213

2 8

S&P GLOBAL

393

7,442

2,339

GLOBAL PAYMENTS

394

7,424

585

8 6

MOODY’S

500

33 3

113

VISTRA

274

11,443

636

6 4

CHENIERE ENERGY

328

9,358

(85)

(1) 6

–

NRG ENERGY

333

9,093

510

6 3

UGI

436

6,559

532

MDU RESOURCES GROUP

486

5,533

390

7 2

62,344

2,093

9,226

450

TOTAL MEDIAN

20 FOOD AND DRUG STORES 17 ENGINEERING, CONSTRUCTION

10,671

MEDIAN

5,938

TOTAL

3,039

6 COMPANIES

5,537 168,473

5,371

1,778

115,739

27,510

12,552

1,778

31 4 460

6 COMPANIES

8 COMPANIES 1

WALGREENS BOOTS ALLIANCE

139,537

456

0 5

AECOM

189

16,391

(186)

(1) 6

(6)

KROGER

132,498

2,585

2 3

FLUOR

196

15,884

(435)

(3) 8

(42)

ALBERTSONS

62,455

466

1 4

JACOBS ENGINEERING GROUP

225

13,578

492

4 4

PUBLIX

45,204

3,972

PETER KIEWIT SONS’

243

12,463

826

RITE AID

132

21,928

(452)

(2) 6

(67)

SPROUTS FARMERS MARKET

437

4 2

QUANTA SERVICES

278

11,203

446

4 3

EMCOR GROUP

344

8,797

133

2 5

TOTAL

MASTEC

441

6,321

323

5 2

MEDIAN

KBR

470

5,767

(72)

(1) 7

(5)

90,404

1,526

11,833

228

TOTAL MEDIAN

6,469

287

408,091

7,315

53,830

461

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F O R T U N E J U N E /J U LY 2 0 2 1 F 3 0

3 4

THE LISTS

WHO’S ON TOP BY SECTOR

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

21 FOOD CONSUMER PRODUCTS

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

24 GENERAL MERCHANDISERS

13 COMPANIES

7 COMPANIES

PEPSICO

70,372

7,120

10 6

WALMART

559,151

13,510

2 3

MONDELEZ INTERNATIONAL

108

26,581

3,555

13 3

COSTCO WHOLESALE

166,761

4,002

2 4

KRAFT HEINZ

110

26,185

356

1 12

TARGET

93,561

4,368

GENERAL MILLS

169

17,627

2,181

12 5

MACY’S

164

18,097

(3,944)

(22) 7 (154)

LAND O’LAKES

219

13,949

265

2 11

KOHL’S

195

15,955

(163)

(1) 5

(3)

KELLOGG

222

13,770

1,251

9 9

BJ’S WHOLESALE CLUB

198

15,430

421

3 2

132

CONAGRA BRANDS

283

11,054

840

8 10

NORDSTROM

289

10,715

(690)

(6) 6 (226)

HORMEL FOODS

317

9,608

908

TOTAL

879,670

17,504

CAMPBELL SOUP

335

9,050

1,628

MEDIAN

18,097

421

HERSHEY

370

8,150

1,279

16 2

9 8

J.M. SMUCKER

378

7,801

780

10 7

POST HOLDINGS

474

5,699

0 13

MCCORMICK

482

13 4

TOTAL MEDIAN

22 FOOD PRODUCTION

5,601

747

225,447

20,911

11,054

908

25 HEALTH CARE: INSURANCE AND MANAGED CARE

6 COMPANIES

UNITEDHEALTH GROUP

257,141

15,403

ANTHEM

121,867

4,572

4 4

CENTENE

111,115

1,808

2 6

HUMANA

77,155

3,367

4 3

MOLINA HEALTHCARE

155

19,423

673

3 5

MAGELLAN HEALTH

390

7,502

382

5 2

7 COMPANIES

ARCHER DANIELS MIDLAND

64,355

1,772

3 5

TOTAL

TYSON FOODS

43,185

2,061

5 3

MEDIAN

CHS

103

28,406

422

1 6

CORTEVA

214

14,217

681

5 2

ANDERSONS

366

8,208

0 7

SEABOARD

406

7,126

283

4 4

HCA HEALTHCARE

51,533

3,754

7 2

656

INGREDION

463

5,987

348

TENET HEALTHCARE

167

17,640

399

2 6 1,425

171,485

5,575

COMMUNITY HEALTH SYSTEMS

259

11,789

511

4 5

14,217

422

UNIVERSAL HEALTH SERVICES

270

11,559

944

DAVITA

271

11,551

774

7 3

SELECT MEDICAL HOLDINGS

487

5 4

TOTAL MEDIAN

23 FOOD SERVICES

F 3 1 F O R T U N E J U N E /J U LY 2 0 2 1

INDUSTRY NO. RANK

TOTAL

STARBUCKS

125

23,518

928

MCDONALD’S

157

19,208

4,731

4 5 25

MEDIAN

—

YUM CHINA HOLDINGS

363

8,263

784

9 3

DARDEN RESTAURANTS

377

7,807

(52)

(1) 6

(2)

CHIPOTLE MEXICAN GRILL

464

5,985

356

6 4

YUM BRANDS

478

5,652

904

16 2

—

70,432

7,650

8,035

844

MEDIAN

94,135

26 HEALTH CARE: MEDICAL FACILITIES

6 COMPANIES

TOTAL

594,203 26,205

2,588

6 COMPANIES

5,532

259

109,603

6,641

11,674

642

27 HEALTH CARE: PHARMACY AND OTHER SERVICES

—

6 COMPANIES

CVS HEALTH

268,706

7,179

3 5

CIGNA

160,401

8,458

5 4

LAB. CORP. OF AMERICA

218

13,979

1,556

11 3

IQVIA HOLDINGS

275

11,359

279

2 6

QUEST DIAGNOSTICS

324

9,437

1,431

CERNER

490

5,506

780

14 2

469,387

19,683

12,669

1,494

TOTAL MEDIAN

ADAPTABILITY | 2020

When growth seemed impossible, Dell Technologies ™ PowerStore and CDW showed how an adaptable infrastructure could lead the way. © 2021 CDW®, CDW•G® and PEOPLE WHO GET IT® are registered trademarks of CDW LLC.

CDW.com/DellTech

FORTUNE 500

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

28 HOME EQUIPMENT, FURNISHINGS STANLEY BLACK & DECKER

MOHAWK INDUSTRIES

321

NEWELL BRANDS

325

MASCO

398

7,289

FORTUNE BRANDS HOME & SECURITY 456

6,090 46,851

2,757

9,385

553

14,535

209

TOTAL MEDIAN

29 HOMEBUILDERS

WESTINGHOUSE AIR BRAKE TECH. 384

7,556

414

5 9

DOVER

6,684

683

10 4

186,936

16,759

13,696

1,789

5 COMPANIES

TOTAL

5 4

MEDIAN

(8) 5

(20)

1,234

8 3

9,552

516

9,385

(770)

1,224

628

553

9 2

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK

429

32 INFORMATION TECHNOLOGY SERVICES

9 COMPANIES

INTL. BUSINESS MACHINES

73,620

5,590

8 2

DXC TECHNOLOGY

152

19,577

(5,369)

(27) 9

(112)

CDW

161

18,468

789

4 6

COGNIZANT TECHNOLOGY

185

16,652

1,392

6 COMPANIES 5

LEIDOS HOLDINGS

248

12,297

628

5 5

LENNAR

129

22,489

2,465

11 4

INSIGHT ENTERPRISES

360

8,341

173

2 8

D.R. HORTON

148

20,311

2,374

12 3

BOOZ ALLEN HAMILTON

391

7,464

483

6 3

PULTEGROUP

284

11,036

1,407

SCIENCE APPLICATIONS INTL.

412

7,056

209

3 7

NVR

383

7,566

901

12 2

CACI INTERNATIONAL

473

6 4

TOLL BROTHERS

411

7,078

447

6 5

TOTAL

TAYLOR MORRISON HOME

4 6

MEDIAN

452

TOTAL MEDIAN

6,129

243

74,609

7,837

9,301

1,154

30 HOUSEHOLD AND PERSONAL PRODUCTS

5,720

321

169,194

4,215

12,297

483

33 INSURANCE: LIFE, HEALTH (MUTUAL)

7 COMPANIES

NEW YORK LIFE INSURANCE

46,712

(822)

(2) 7

(4)

TIAA*

41,619

558

1 3

6 COMPANIES

PROCTER & GAMBLE

70,950

13,027

NORTHWESTERN MUTUAL

33,782

425

1 4

KIMBERLY-CLARK

158

19,140

2,352

12 4

376

MASSACHUSETTS MUTUAL LIFE

123

23,663

(101)

(0) 6

(0)

16 2 363

COLGATE-PALMOLIVE

188

16,471

2,695

GUARDIAN LIFE OF AMERICA

227

13,561

0 5

ESTÉE LAUDER

213

14,294

684

5 5

THRIVENT FINANCIAL*

369

8,153

637

COTY

426

6,738

(1,007)

(15) 6

(27)

WESTERN & SOUTHERN

374

8,058

204

3 2

CLOROX

427

6,721

939

14 3

103

TOTAL MEDIAN

15,383

31 INDUSTRIAL MACHINERY GENERAL ELECTRIC CUMMINS

MEDIAN

1,646

175,549

925

23,663

204

*SEE NOTE 20, PAGE F22.

34 INSURANCE: LIFE, HEALTH (STOCK)

9 COMPANIES

13 COMPANIES

79,619

5,704

7 7

METLIFE

67,842

5,407

8 3

150

19,811

1,789

9 5

PRUDENTIAL FINANCIAL

57,033

(374)

(1) 10

CARRIER GLOBAL

171

17,456

1,982

11 3

AFLAC

131

22,147

4,778

EMERSON ELECTRIC

181

16,785

1,965

12 2

LINCOLN NATIONAL

172

17,439

499

3 7

PARKER-HANNIFIN

223

13,696

1,206

9 6

OTIS WORLDWIDE

236

12,756

906

7 8

–

ILLINOIS TOOL WORKS

240

12,574

2,109

PRINCIPAL FINANCIAL

206

14,742

1,396

9 2

REINSURANCE GROUP

207

14,596

415

3 8

UNUM GROUP

230

13,162

793

6 5

EQUITABLE HOLDINGS

244

12,415

(648)

(5) 11

(4) 12

MUTUAL OF OMAHA*

282

11,098

698

6 4

PRODUCTIVITY | 2020

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CDW.com/LenovoClient

F O R T U N E J U N E /J U LY 2 0 2 1 F 3 2

1 2

TOTAL

134,314 18,690

THE LISTS

WHO’S ON TOP BY SECTOR

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

PACIFIC LIFE*

303

10,062

(671)

(7) 12

(4)

FIRST AMERICAN FINANCIAL

409

7,087

696

GENWORTH FINANCIAL

348

8,658

178

2 9

FM GLOBAL*

423

6,798

1,732

BRIGHTHOUSE FINANCIAL

353

8,503

(1,061)

(12) 13

SECURIAN FINANCIAL GROUP

421

4 6

TOTAL MEDIAN

6,870

243

264,568

11,653

13,162

415

TOTAL

(6) 13 4

11,681

35 INSURANCE: PROPERTY AND CASUALTY (MUTUAL) 39

78,898

3,739

787

5 COMPANIES

5 3

AMAZON.COM

ALPHABET

FACEBOOK

9 COMPANIES

386,064

21,331

6 5

182,527 40,269

22 3

85,965

29,146

34 2

4 2

NATIONWIDE

41,930

(138)

(0) 4

(1)

QURATE RETAIL

216

14,177

1,204

8 4

FARMERS INSURANCE EXCHANGE 256

11,870

(116)

(1) 5

(2)

WAYFAIR

217

14,145

185

1 6

–

AUTO-OWNERS INSURANCE

341

8,853

829

EBAY

276

11,351

5,667

159

ERIE INSURANCE GROUP

347

8,666

1,173

UBER TECHNOLOGIES

281

11,139

(6,768)

(61) 9

(55)

150,217

5,487

CHEWY

403

7,146

(92)

(1) 8

–

11,870

829

BOOKING HOLDINGS

424

6,796

1 7

719,310

91,001

14,145

1,204

TOTAL MEDIAN

9 2 14

TOTAL

36 INSURANCE: PROPERTY AND CASUALTY (STOCK)

F 3 3 F O R T U N E J U N E /J U LY 2 0 2 1

37 INTERNET SERVICES AND RETAILING

STATE FARM INSURANCE

*SEE NOTE 18, PAGE F22.

619,048 64,681

MEDIAN

10 8 25

MEDIAN

20 COMPANIES

BERKSHIRE HATHAWAY

245,510

42,521

17 2

ALLSTATE

44,791

5,576

12 6

758

2 17

UNITED PARCEL SERVICE

84,628

1,343

2 2 204

(5,944) 20

(14)20

(9) 20

FEDEX

69,217

1,286

153,845

2,629

LIBERTY MUTUAL INS. GROUP*

43,796

AMERICAN INTERNATIONAL GROUP 72

43,736

PROGRESSIVE

42,658

5,705

13 4

UNITED SVCS. AUTO. ASSN.*

36,296

3,907

11 7

TRAVELERS

31,981

2,697

8 11

HARTFORD FINANCIAL SERVICES

142

20,523

1,737

8 10

38 MAIL, PACKAGE, AND FREIGHT DELIVERY

TOTAL

39 MEDICAL PRODUCTS AND EQUIPMENT

AMERICAN FAMILY INS. GROUP*

232

13,075

403

3 16

ABBOTT LABORATORIES

LOEWS

239

12,583

(931)

(7) 19

(5) 19

DANAHER

2 COMPANIES

7 COMPANIES

34,608

4,495

13 2

130

22,284

3,646

FIDELITY NATIONAL FINANCIAL

288

10,778

1,427

13 5

BECTON DICKINSON

177

17,117

874

5 5

ASSURANT

302

10,095

442

4 15

STRYKER

212

14,351

1,599

11 3

MARKEL

ALLEGHANY

311

9,735

816

8 12

BAXTER INTERNATIONAL

264

11,673

1,102

9 4

339

8,897

102

1 18

BOSTON SCIENTIFIC

305

9,913

(82)

(1) 6

(1)

ZIMMER BIOMET HOLDINGS

414

(2) 7

(1)

W.R. BERKLEY

372

8,099

531

7 14

AMERICAN FINANCIAL GROUP

376

7,909

732

9 9

TOTAL

CINCINNATI FINANCIAL

386

7,536

1,216

16 3

MEDIAN

OLD REPUBLIC INTERNATIONAL

401

7,166

559

8 13

7,025

(139)

116,971

11,495

14,351

1,102

SIMPLICITY | 2020

CDW.com/hpe

FORTUNE 500

INDUSTRY NO. RANK

40 METALS

REVENUES PROFITS 500 rank $ mil. $ mil. Rank

PROFITS StockAS % OF… holders’ Revenues equity % Rank % Rank

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

43 NETWORK AND OTHER COMMUNICATIONS EQUIPMENT

7 COMPANIES

4 COMPANIES

NUCOR

149

20,140

721

4 4

CISCO SYSTEMS

49,301

11,214

UNITED STATES STEEL

310

9,741

(1,165)

(12) 7

(31)

AMPHENOL

349

8,599

1,203

14 2

2 3

STEEL DYNAMICS

319

9,601

551

COMMSCOPE HOLDING

356

8,436

(573)

(7) 4 (162)

ALCOA

330

9,286

(170)

(2) 5

(5)

MOTOROLA SOLUTIONS

395

7,414

949

13 3

73,750

12,793

8,517

1,076

RELIANCE STEEL & ALUMINUM

343

8,812

369

4 3

TOTAL

ARCONIC

476

5,675

(109)

(2) 6

(8)

MEDIAN

COMMERCIAL METALS

492

5,476

280

5 2

TOTAL MEDIAN

68,732

477

9,286

280

41 MINING, CRUDE-OIL PRODUCTION

44 OIL AND GAS EQUIPMENT, SERVICES

CONOCOPHILLIPS

156

19,256

(2,701)

(14) 5

(9)

OCCIDENTAL PETROLEUM

183

16,680 (14,831)

(89) 6

(80)

FREEPORT-MCMORAN

215

14,198

599

4 2

NEWMONT

273

11,497

2,829

3 COMPANIES

BAKER HUGHES

140

20,705

(9,940)

(48) 3

(77)

HALLIBURTON

211

14,445

(2,945)

(20) 1

(59)

NOV

457

6,090

(2,542)

(42) 2

(49)

7 COMPANIES

–

TOTAL

41,240 (15,427)

45 PACKAGING, CONTAINERS

9 COMPANIES

EOG RESOURCES

285

11,032

(605)

(5) 4

(3)

INTERNATIONAL PAPER

141

20,580

482

2 8

PIONEER NATURAL RESOURCES

428

6,685

(200)

(3) 3

(2)

WESTROCK

170

17,579

(691)

(4) 9

(7)

OVINTIV

458

6,087

(6,097)

6 (100) 7 (159)

TOTAL

85,435 (21,006)

MEDIAN

11,497

42 MOTOR VEHICLES AND PARTS

(605)

(5)

(3)

BALL

260

11,781

585

5 4

BERRY GLOBAL GROUP

261

11,709

559

5 5

3 4

CROWN HOLDINGS

269

11,575

579

5 3

AVERY DENNISON

417

6,972

556

PACKAGING CORP. OF AMERICA

433

6,658

461

7 2

GRAPHIC PACKAGING HOLDING

435

6,560

167

3 7

O-I GLASS

455

6,091

249

4 6

99,504

2,947

11,575

482

10 COMPANIES

FORD MOTOR

127,144

(1,279)

(1) 8

(4)

GENERAL MOTORS

122,485

6,427

TOTAL MEDIAN

TESLA

100

31,536

721

2 5

LEAR

179

17,046

159

1 6

TENNECO

199

15,379

(1,521)

(10) 9

–

GOODYEAR TIRE & RUBBER

246

12,321

(1,254)

(10) 10

(41)

46 PETROLEUM REFINING

8 COMPANIES

BORGWARNER

295

10,165

500

5 2

EXXON MOBIL

181,502 (22,440)

(12) 8

(14)

THOR INDUSTRIES

368

8,168

223

3 3

CHEVRON

94,692

(5,543)

(6) 3

(4)

AUTOLIV

392

7,447

187

3 4

MARATHON PETROLEUM

88,952

(9,826)

(11) 7

(44)

DANA

408

7,106

(31)

(0) 7

(2)

PHILLIPS 66

65,494

(3,975)

(6) 4

(21)

358,797

4,131

13,850

173

TOTAL MEDIAN

VALERO ENERGY

60,115

(1,421)

(2) 1

(8)

PBF ENERGY

203

15,116

(1,392)

(9) 6

100

HOLLYFRONTIER

279

11,184

(601)

(5) 2

(12)

DELEK US HOLDINGS

397

7,302

(608)

(8) 5

(60)

TOTAL MEDIAN

524,356 (45,807) 62,805

SCALABILITY | 2020

CDW.com/vmware

(2,698)

(7)

(13)

F O R T U N E J U N E /J U LY 2 0 2 1 F 3 4

7 8

THE LISTS

WHO’S ON TOP BY SECTOR

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK

47 PHARMACEUTICALS

50 RAILROADS

14 COMPANIES

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK

3 COMPANIES

JOHNSON & JOHNSON

82,584

14,714

18 8

UNION PACIFIC

153

19,533

5,349

MERCK

47,994

7,067

15 9

CSX

292

10,583

2,765

26 2

NORFOLK SOUTHERN

307

9,789

2,013

21 3

39,905

10,127

ABBVIE

45,804

4,616

10 10

BRISTOL-MYERS SQUIBB

42,518

(9,015)

(21) 14

(24) 14

PFIZER

41,908

9,616

23 7

AMGEN

112

25,424

7,264

29 4

GILEAD SCIENCES

116

24,689

123

1 12

TOTAL

51 REAL ESTATE

6 COMPANIES

ELI LILLY

118

24,540

6,194

25 5

110

CBRE GROUP

122

23,826

752

3 4

BIOGEN

228

13,445

4,001

30 3

JONES LANG LASALLE

186

16,590

403

2 5

VIATRIS

254

11,946

(670)

(6) 13

(3) 13

AMERICAN TOWER

375

8,042

1,691

REGENERON PHARMACEUTICALS 354

8,497

3,513

41 2

REALOGY HOLDINGS

445

6,221

(360)

(6) 6

(20)

ZOETIS

431

6,675

1,638

25 6

EQUINIX

461

5,999

370

6 3

VERTEX PHARMACEUTICALS

448

6,206

2,712

CROWN CASTLE INTERNATIONAL

467

5,840

1,056

18 2

ALEXION PHARMACEUTICALS

459

6,070

603

10 11

66,517

3,911

7,131

577

TOTAL

TOTAL MEDIAN

388,299 52,376

MEDIAN

24,614

3,757

52 SCIENTIFIC, PHOTOGRAPHIC, AND CONTROL EQUIP. 48 PIPELINES 1

ENERGY TRANSFER

38,954

(648)

(2) 5

(4)

THERMO FISHER SCIENTIFIC

32,218

6,375

AVANTOR

438

6,394

117

2 3

ROPER TECHNOLOGIES

488

17 2

ENTERPRISE PRODUCTS

105

27,200

3,776

PLAINS GP HOLDINGS

127

23,290

(568)

(2) 7

(39)

NGL ENERGY PARTNERS

151

19,771

(397)

(2) 6

(18)

KINDER MORGAN

262

11,700

119

1 4

ONEOK

351

8,542

613

7 2

TOTAL

53 SECURITIES

5,527

950

44,139

7,441

10 COMPANIES

TARGA RESOURCES

364

8,260

(1,554)

(19) 9

(53)

BLACKROCK

192

16,205

4,932

30 2

WILLIAMS

379

7,719

211

3 3

CHARLES SCHWAB

251

12,109

3,299

27 3

DCP MIDSTREAM

442

(5) 8

(5)

TOTAL MEDIAN

49 PUBLISHING, PRINTING F 3 5 F O R T U N E J U N E /J U LY 2 0 2 1

3 COMPANIES

9 COMPANIES

(306) 1,246

11,700

(306)

(2)

(4)

JONES FINANCIAL (EDWARD JONES) 295

10,165

1,285

13 8

KKR

316

9,630

2,003

21 5

4 8

INTERCONTINENTAL EXCHANGE

365

8,244

2,089

25 4

RAYMOND JAMES FINANCIAL

367

8,168

818

10 9

T. ROWE PRICE

447

6,207

2,373

LPL FINANCIAL HOLDINGS

466

5,872

473

8 10

NASDAQ

480

5,627

933

17 6

FRANKLIN RESOURCES

484

5,567

799

14 7

2 COMPANIES

NEWS CORP.

337

R.R. DONNELLEY & SONS

499

TOTAL

6,302 151,738

9,008

(1,269)

5,399

14,407

(1,171)

(14) 2 2

(17) —

TOTAL

87,793 19,003

MEDIAN

8,206

1,644

SECURITY | 2020

When the office expanded to living rooms and kitchen tables, HP Sure Suite and CDW delivered built-in protection everywhere. © 2021 CDW®, CDW•G® and PEOPLE WHO GET IT® are registered trademarks of CDW LLC.

CDW.com/HPSecurity

FORTUNE 500

INDUSTRY NO. RANK

REVENUES PROFITS 500 rank $ mil. $ mil. Rank

54 SEMICONDUCTORS AND ELECTRONIC COMPONENTS

PROFITS StockAS % OF… holders’ Revenues equity % Rank % Rank

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

INDUSTRY NO. RANK 13

MURPHY USA

322

9,504

386

4 13

CASEY’S GENERAL STORES

371

8,112

264

3 15

13 COMPANIES

INTEL

27 2

WILLIAMS-SONOMA

425

6,783

681

10 4

JABIL

104

27,266

0 13

BIG LOTS

449

6,199

629

10 3

77,867 20,899

BROADCOM

121

23,888

2,960

12 11

ULTA BEAUTY

451

6,152

176

3 16

QUALCOMM

124

23,531

5,198

22 6

ACADEMY SPORTS AND OUTDOORS 475

5,689

309

5 10

446,081

31,265

10,363

655

MICRON TECHNOLOGY

135

21,435

2,687

13 10

TOTAL

APPLIED MATERIALS

176

17,202

3,619

21 8

MEDIAN

NVIDIA

184

16,675

4,332

26 3

TEXAS INSTRUMENTS

210

14,461

5,595

LAM RESEARCH

304

10,045

2,252

22 5

ADVANCED MICRO DEVICES

309

9,763

2,490

26 4

AT&T

171,760

(5,176)

(3) 6

(3)

SANMINA

418

6,960

140

2 12

VERIZON COMMUNICATIONS

128,292

17,801

KLA

468

5,806

1,217

21 9

COMCAST

103,564

10,534

10 3

ANALOG DEVICES

481

5,603

1,221

22 7

CHARTER COMMUNICATIONS

48,097

3,222

7 4

LUMEN TECHNOLOGIES

139

20,712

(1,232)

(6) 8

(11)

DISH NETWORK

197

15,493

1,763

11 2

ALTICE USA

306

9,895

436

4 5

FRONTIER COMMUNICATIONS

402

7,155

(402)

(6) 7

– –

TOTAL

260,503 52,663

MEDIAN

16,675

55 SPECIALTY RETAILERS: APPAREL

2,687

57 TELECOMMUNICATIONS

6 COMPANIES

8 COMPANIES

TOTAL

TJX

32,137

0 4

GAP

221

13,800

(665)

(5) 6

(25)

504,968 26,946

MEDIAN

34,405

1,099

ROSS STORES

242

12,532

1 3

L BRANDS

257

11,847

844

FOOT LOCKER

385

7,548

323

4 2

PHILIP MORRIS INTERNATIONAL

101

28,694

8,056

–

BURLINGTON STORES

471

5,764

(217)

(4) 5

(47)

ALTRIA GROUP

138

20,841

4,467

21 2

157

83,627

462

49,535

12,523

12,189

TOTAL MEDIAN

58 TOBACCO

2 COMPANIES

– TOTAL

59 TRANSPORTATION AND LOGISTICS 56 SPECIALTY RETAILERS: OTHER

3 COMPANIES

18 COMPANIES 1

XPO LOGISTICS

190

16,252

110

1 3

HOME DEPOT

132,110

12,866

10 5 390

C.H. ROBINSON WORLDWIDE

191

16,207

506

3 2

LOWE’S

89,597

5,835

7 8 406

EXPEDITORS INTL. OF WASH.

299

10,116

696

42,576

1,313

BEST BUY

47,262

1,798

4 14

DOLLAR GENERAL

33,747

2,655

8 6

7 12

DOLLAR TREE

AUTOZONE

111

25,509

1,342

5 11

238

12,632

1,733

14 2

–

O’REILLY AUTOMOTIVE

268

11,604

1,752

BED BATH & BEYOND

280

11,159

(614)

60 TRUCKING, TRUCK LEASING

2 COMPANIES

J.B. HUNT TRANSPORT SVCS.

315

9,637

506

(35) 17

RYDER SYSTEM

357

8,420

(122)

(1) 2

(5)

18,057

384

1 1,249

(6) 18

TOTAL

TRACTOR SUPPLY

291

10,620

749

7 7

ADVANCE AUTO PARTS

301

10,106

493

5 12

ODP

312

9,710

(319)

(3) 17

(17) 16

DICK’S SPORTING GOODS

320

9,584

530

6 9

TOTAL

CLARITY | 2020

When transformation was happening everywhere, Palo Alto Networks® Prisma Cloud and CDW built security, visibility and governance into every step of the process. © 2021 CDW®, CDW•G® and PEOPLE WHO GET IT® are registered trademarks of CDW LLC.

CDW.com/PaloAltoNetworks

F O R T U N E J U N E /J U LY 2 0 2 1 F 3 6

3 4

THE LISTS

WHO’S ON TOP BY SECTOR

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

61 UTILITIES: GAS AND ELECTRIC

22 COMPANIES

INDUSTRY NO. RANK

PROFITS StockAS % OF… holders’ REVENUES PROFITS Revenues equity 500 rank $ mil. $ mil. Rank % Rank % Rank

FASTENAL

479

5,647

859

BOISE CASCADE

493

5,475

175

101,400

2,669

8,265

102

3 4

EXELON

33,039

1,963

6 16

TOTAL

DUKE ENERGY

126

23,453

1,377

6 17

MEDIAN

SOUTHERN

146

20,375

3,119

15 6

PG&E

160

18,469

(1,318)

(7) 21

(6) 21

NEXTERA ENERGY

166

17,997

2,919

16 5

DOMINION ENERGY

193

16,128

(2)20

(2) 20

ARROW ELECTRONICS

102

28,673

584

2 2

AMERICAN ELECTRIC POWER

204

14,919

2,200

15 8

SYNNEX

117

24,676

529

EDISON INTERNATIONAL

226

13,578

739

5 18

AVNET

168

17,634

(31)

(0) 3

(1)

70,983

1,083

(401) 20

CONSOLIDATED EDISON

249

12,246

1,101

9 15

DTE ENERGY

250

12,177

1,368

11 13

SEMPRA ENERGY

255

11,940

3,932

XCEL ENERGY

272

11,526

1,473

13 11

64 WHOLESALERS: ELECTRONICS AND OFFICE EQUIPMENT

TOTAL

65 WHOLESALERS: FOOD AND GROCERY

3 COMPANIES 2

6 COMPANIES

FIRSTENERGY

294

10,435

1,079

10 14

SYSCO

52,893

215

0 3

ENTERGY

300

10,114

1,388

14 9

UNITED NATURAL FOODS

107

26,743

(274)

(1) 6

(24)

AES

313

9,660

0 19

PERFORMANCE FOOD GROUP

114

25,086

(114)

(0) 4

(6)

PUBLIC SVC. ENTERPRISE GROUP

318

9,603

1,905

20 2

US FOODS HOLDING

128

22,885

(226)

(1) 5

(6)

EVERSOURCE ENERGY

338

8,904

1,205

14 10

CORE-MARK HOLDING

224

13,617

0 2

CENTERPOINT ENERGY

342

8,835

(773)

(9) 22

SPARTANNASH

329

9,348

PPL

382

7,607

1,469

19 3

TOTAL

150,573

(260)

WEC ENERGY GROUP

400

7,242

1,200

17 4

MEDIAN

23,986

(25)

CMS ENERGY

430

6,680

755

11 12

AMEREN

469

15 7

TOTAL MEDIAN

62 WASTE MANAGEMENT

5,794

871

290,720

27,618

11,733

1,287

66 WHOLESALERS: HEALTH CARE

WASTE MANAGEMENT

202

REPUBLIC SERVICES

297

15,218

GENUINE PARTS

(0)

6 COMPANIES

MCKESSON

231,051

900

0 2

AMERISOURCEBERGEN

189,894

(3,409)

(2) 4

–

CARDINAL HEALTH

152,922

(3,696)

(2) 5 (207)

HENRY SCHEIN

298

10,119

404

8,707

0 3

(11) 6

(71)

1,496

OWENS & MINOR

345

10,154

967

10 2

PATTERSON

491

25,372

2,463

TOTAL

5,490

(588)

598,183

(6,360)

81,521

(279)

MEDIAN

63 WHOLESALERS: DIVERSIFIED

2 COMPANIES

TOTAL

F 3 7 F O R T U N E J U N E /J U LY 2 0 2 1

(1)

11 COMPANIES

173

17,384

(29)

(0) 10

(1) 10

67 MISCELLANEOUS

7 COMPANIES

WESCO INTERNATIONAL

245

12,326

101

1 7

MANPOWERGROUP

165

18,001

0 6

W.W. GRAINGER

258

11,797

695

6 2

MARRIOTT INTERNATIONAL

293

10,571

(267)

(3) 7

(62)

LKQ

266

11,629

638

5 3

UNITED RENTALS

352

8,530

890

10 2

GLOBAL PARTNERS

361

8,322

102

1 6

WEYERHAEUSER

387

7,532

797

UNIVAR SOLUTIONS

362

8,265

1 8

POLARIS

407

7,108

125

2 4

GRAYBAR ELECTRIC

399

7,266

122

2 5

HASBRO

494

5,465

223

4 3

BEACON ROOFING SUPPLY

420

6,944

(81)

(1) 11

(4)

A-MARK PRECIOUS METALS

495

5,461

1 5

VERITIV

439

6,346

1 9

62,669

1,822

TOTAL

OPPORTUNITY | TODAY

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THE LISTS

FORTUNE 500

INDEX

INDEX Company (Rank)

Industry number 39 47 14 56 18 10 56 54 17 61 34 12 8 20 40 47 36 36 13 37 57 58 67 37 61 3 61 13 36 36 36 51 13 66 47 43 54 22 25 11 54 14 22 40 64 5 36 57 42 14 5 35 56 52 45 5 64

COMMUNITY HEALTH SYSTEMS (259) CONAGRA BRANDS (283) CONOCOPHILLIPS (156) CONSOLIDATED EDISON (249) CONSTELLATION BRANDS (359) CORE-MARK HOLDING (224) CORNING (277) CORTEVA (214) COSTCO WHOLESALE (12) COTY (426) CROWN CASTLE INTERNATIONAL (467) CROWN HOLDINGS (269) CSX (292) CUMMINS (150) CVS HEALTH (4) DANA (408) DANAHER (130) DARDEN RESTAURANTS (377) DAVITA (271) DCP MIDSTREAM (442) DEERE (88) DELEK US HOLDINGS (397) DELL TECHNOLOGIES (28) DELTA AIR LINES (178) DICK’S SPORTING GOODS (320) DISCOVER FINANCIAL SERVICES (233) DISCOVERY (290) DISH NETWORK (197) DISNEY (WALT) (50) DOLLAR GENERAL (91) DOLLAR TREE (111) DOMINION ENERGY (193) DONNELLEY (R.R.) & SONS (499) DOVER (429) DOW (82) DTE ENERGY (250) DUKE ENERGY (126) DUPONT (144) DXC TECHNOLOGY (152) EASTMAN CHEMICAL (355) EBAY (276) ECOLAB (237) EDISON INTERNATIONAL (226) ELECTRONIC ARTS (485) EMCOR GROUP (344) EMERSON ELECTRIC (181) ENERGY TRANSFER (81) ENTERGY (300) ENTERPRISE PRODUCTS (105) EOG RESOURCES (285) EQUINIX (461) EQUITABLE HOLDINGS (244) ERIE INSURANCE GROUP (347) EVERSOURCE ENERGY (338) EXELON (92) EXPEDITORS INTL. OF WASHINGTON (299) EXXON MOBIL (10) FACEBOOK (34) FANNIE MAE (25) FARMERS INSURANCE EXCHANGE (256) FASTENAL (479) FEDEX (45) FIDELITY NATIONAL FINANCIAL (288) FIDELITY NATIONAL INFO. SERVICES (241)

26 21 41 61 6 65 15 22 24 30 51 45 50 31 27 42 39 23 26 48 12 46 11 3 56 9 18 57 18 56 56 61 49 31 8 61 61 8 32 8 37 8 61 18 17 31 48 61 48 41 51 34 35 61 61 59 46 37 13 35 63 38 36 19

FIFTH THIRD BANCORP (358) FIRST AMERICAN FINANCIAL (409) FIRSTENERGY (294) FISERV (205) FLUOR (196) FM GLOBAL (423) FOOT LOCKER (385) FORD MOTOR (21) FORTUNE BRANDS HOME & SECURITY (456) FOX (247) FRANKLIN RESOURCES (484) FREDDIE MAC (47) FREEPORT-MCMORAN (215) FRONTIER COMMUNICATIONS (402) GALLAGHER (ARTHUR J.) (416) GAP (221) GENERAL DYNAMICS (84) GENERAL ELECTRIC (38) GENERAL MILLS (169) GENERAL MOTORS (22) GENUINE PARTS (173) GENWORTH FINANCIAL (348) GILEAD SCIENCES (116) GLOBAL PARTNERS (361) GLOBAL PAYMENTS (394) GOLDMAN SACHS GROUP (59) GOODYEAR TIRE & RUBBER (246) GRAINGER (W.W.) (258) GRAPHIC PACKAGING HOLDING (435) GRAYBAR ELECTRIC (399) GROUP 1 AUTOMOTIVE (286) GUARDIAN LIFE OF AMERICA (227) HALLIBURTON (211) HANESBRANDS (432) HARTFORD FINANCIAL SERVICES (142) HASBRO (494) HCA HEALTHCARE (62) HERSHEY (370) HEWLETT PACKARD ENTERPRISE (106) HOLLYFRONTIER (279) HOME DEPOT (18) HONEYWELL INTERNATIONAL (94) HORMEL FOODS (317) HORTON (D.R.) (148) HP (56) HUMANA (41) HUNTINGTON INGALLS INDUSTRIES (327) HUNT (J.B.) TRANSPORT SVCS. (315) HUNTSMAN (460) ICAHN ENTERPRISES (453) ILLINOIS TOOL WORKS (240) INGREDION (463) INSIGHT ENTERPRISES (360) INTEL (40) INTERCONTINENTAL EXCHANGE (365) INTERNATIONAL BUSINESS MACHINES (42) INTERNATIONAL PAPER (141) INTERPUBLIC GROUP (334) INTUIT (380) IQVIA HOLDINGS (275) JABIL (104) JACOBS ENGINEERING GROUP (225) JEFFERIES FINANCIAL GROUP (419) JOHNSON & JOHNSON (36)

9 36 61 19 17 36 55 42 28 18 53 13 41 57 13 55 2 31 21 42 63 34 47 63 19 9 42 63 45 63 5 33 44 4 36 67 26 21 11 46 56 15 21 29 11 25 2 60 8 13 31 22 32 54 53 32 45 1 10 27 54 17 13 47

F O R T U N E J U N E /J U LY 2 0 2 1 F 3 8

ABBOTT LABORATORIES (89) ABBVIE (68) ABM INDUSTRIES (462) ACADEMY SPORTS AND OUTDOORS (475) ACTIVISION BLIZZARD (373) ADOBE (234) ADVANCE AUTO PARTS (301) ADVANCED MICRO DEVICES (309) AECOM (189) AES (313) AFLAC (131) AGCO (331) AIR PRODUCTS & CHEMICALS (340) ALBERTSONS (52) ALCOA (330) ALEXION PHARMACEUTICALS (459) ALLEGHANY (339) ALLSTATE (70) ALLY FINANCIAL (287) ALPHABET (9) ALTICE USA (306) ALTRIA GROUP (138) A-MARK PRECIOUS METALS (495) AMAZON.COM (2) AMEREN (469) AMERICAN AIRLINES GROUP (174) AMERICAN ELECTRIC POWER (204) AMERICAN EXPRESS (83) AMERICAN FAMILY INS. GROUP (232) AMERICAN FINANCIAL GROUP (376) AMERICAN INTERNATIONAL GROUP (72) AMERICAN TOWER (375) AMERIPRISE FINANCIAL (253) AMERISOURCEBERGEN (8) AMGEN (112) AMPHENOL (349) ANALOG DEVICES (481) ANDERSONS (366) ANTHEM (23) APPLE (3) APPLIED MATERIALS (176) ARAMARK (235) ARCHER DANIELS MIDLAND (51) ARCONIC (476) ARROW ELECTRONICS (102) ASBURY AUTOMOTIVE GROUP (405) ASSURANT (302) AT&T (11) AUTOLIV (392) AUTOMATIC DATA PROCESSING (208) AUTONATION (145) AUTO-OWNERS INSURANCE (341) AUTOZONE (238) AVANTOR (438) AVERY DENNISON (417) AVIS BUDGET GROUP (498) AVNET (168)

44 BAKER HUGHES (140) 45 BALL (260) 9 BANK OF AMERICA (29) 9 BANK OF NEW YORK MELLON (180) 39 BAXTER INTERNATIONAL (264) 63 BEACON ROOFING SUPPLY (420) 39 BECTON DICKINSON (177) 56 BED BATH & BEYOND (280) 36 BERKLEY (W.R.) (372) 36 BERKSHIRE HATHAWAY (6) 45 BERRY GLOBAL GROUP (261) 56 BEST BUY (66) 56 BIG LOTS (449) 47 BIOGEN (228) 24 BJ’S WHOLESALE CLUB (198) 53 BLACKROCK (192) 13 BLACKSTONE GROUP (454) 2 BOEING (54) 63 BOISE CASCADE (493) 37 BOOKING HOLDINGS (424) 32 BOOZ ALLEN HAMILTON (391) 42 BORGWARNER (295) 39 BOSTON SCIENTIFIC (305) 34 BRIGHTHOUSE FINANCIAL (353) 47 BRISTOL-MYERS SQUIBB (75) 54 BROADCOM (121) 7 BUILDERS FIRSTSOURCE (350) 55 BURLINGTON STORES (471) 32 CACI INTERNATIONAL (473) 21 CAMPBELL SOUP (335) 5 CAMPING WORLD HOLDINGS (496) 9 CAPITAL ONE FINANCIAL (99) 66 CARDINAL HEALTH (14) 5 CARMAX (136) 31 CARRIER GLOBAL (171) 5 CARVANA (483) 56 CASEY’S GENERAL STORES (371) 12 CATERPILLAR (78) 51 CBRE GROUP (122) 32 CDW (161) 8 CELANESE (477) 25 CENTENE (24) 61 CENTERPOINT ENERGY (342) 27 CERNER (490) 57 CHARTER COMMUNICATIONS (64) 16 CHENIERE ENERGY (328) 46 CHEVRON (27) 37 CHEWY (403) 23 CHIPOTLE MEXICAN GRILL (464) 22 CHS (103) 27 CIGNA (13) 36 CINCINNATI FINANCIAL (386) 14 CINTAS (410) 43 CISCO SYSTEMS (63) 9 CITIGROUP (33) 9 CITIZENS FINANCIAL GROUP (381) 30 CLOROX (427) 61 CMS ENERGY (430) 6 COCA-COLA (93) COGNIZANT TECHNOLOGY SOLUTIONS (185) 32 30 COLGATE-PALMOLIVE (188) 57 COMCAST (26) 40 COMMERCIAL METALS (492) 43 COMMSCOPE HOLDING (356)

F 3 9 F O R T U N E J U N E /J U LY 2 0 2 1

THE LISTS

FORTUNE 500

INDEX

JONES FINANCIAL (EDWARD JONES) (295) JONES LANG LASALLE (186) JPMORGAN CHASE (19) KBR (470) KELLOGG (222) KEURIG DR PEPPER (267) KEYCORP (396) KIEWIT (PETER) SONS’ (243) KIMBERLY-CLARK (158) KINDER MORGAN (262) KKR (316) KLA (468) KOHL’S (195) KRAFT HEINZ (110) KROGER (17) LABORATORY CORP. OF AMERICA (218) LAM RESEARCH (304) LAND O’LAKES (219) LAUDER (ESTÉE) (213) LAUREN (RALPH) (450) L BRANDS (257) LEAR (179) LEIDOS HOLDINGS (248) LENNAR (129) LIBERTY MEDIA (326) LIBERTY MUTUAL INSURANCE GROUP (71) LILLY (ELI) (118) LINCOLN NATIONAL (172) LITHIA MOTORS (231) LKQ (266) LOCKHEED MARTIN (49) LOEWS (239) LOWE’S (31) LPL FINANCIAL HOLDINGS (466) L3HARRIS TECHNOLOGIES (163) LUMEN TECHNOLOGIES (139) MACY’S (164) MAGELLAN HEALTH (390) MANPOWERGROUP (165) MARATHON PETROLEUM (32) MARKEL (311) MARRIOTT INTERNATIONAL (293) MARSH & MCLENNAN (175) MASCO (398) MASSACHUSETTS MUTUAL LIFE (123) MASTEC (441) MASTERCARD (201) MCCORMICK (482) MCDONALD’S (157) MCKESSON (7) MDU RESOURCES GROUP (486) MERCK (65) METLIFE (46) MICRON TECHNOLOGY (135) MICROSOFT (15) MOHAWK INDUSTRIES (321) MOLINA HEALTHCARE (155) MOLSON COORS BEVERAGE (314) MONDELEZ INTERNATIONAL (108) MOODY’S (500) MORGAN STANLEY (61) MOSAIC (346) MOTOROLA SOLUTIONS (395) M&T BANK (444)

53 51 9 17 21 6 9 17 30 48 53 54 24 21 20 27 54 21 30 4 55 42 32 29 18 36 47 34 5 63 2 36 56 53 2 57 24 25 67 46 36 67 13 28 33 17 19 21 23 66 16 47 34 54 10 28 25 6 21 19 9 8 43 9

MURPHY USA (322) MUTUAL OF OMAHA (282) NASDAQ (480) NATIONWIDE (76) NAVISTAR INTERNATIONAL (389) NCR (446) NETAPP (497) NETFLIX (115) NEWELL BRANDS (325) NEWMONT (273) NEWS CORP. (337) NEW YORK LIFE INSURANCE (67) NEXTERA ENERGY (166) NGL ENERGY PARTNERS (151) NIKE (85) NORDSTROM (289) NORFOLK SOUTHERN (307) NORTHERN TRUST (443) NORTHROP GRUMMAN (86) NORTHWESTERN MUTUAL (90) NOV (457) NRG ENERGY (333) NUCOR (149) NVIDIA (184) NVR (383) OCCIDENTAL PETROLEUM (183) ODP (312) O-I GLASS (455) OLD REPUBLIC INTERNATIONAL (401) OLIN (472) OMNICOM GROUP (229) ONEOK (351) ORACLE (80) O’REILLY AUTOMOTIVE (268) OSHKOSH (422) OTIS WORLDWIDE (236) OVINTIV (458) OWENS CORNING (413) OWENS & MINOR (345) PACCAR (159) PACIFIC LIFE (303) PACKAGING CORP. OF AMERICA (433) PARKER-HANNIFIN (223) PATTERSON (491) PAYPAL HOLDINGS (134) PBF ENERGY (203) PENSKE AUTOMOTIVE GROUP (143) PEPSICO (44) PERFORMANCE FOOD GROUP (114) PFIZER (77) PG&E (160) PHILIP MORRIS INTERNATIONAL (101) PHILLIPS 66 (48) PIONEER NATURAL RESOURCES (428) PLAINS GP HOLDINGS (127) PNC FINANCIAL SERVICES (120) POLARIS (407) POST HOLDINGS (474) PPG INDUSTRIES (220) PPL (382) PRICE (T. ROWE) (447) PRINCIPAL FINANCIAL (206) PROCTER & GAMBLE (43) PROGRESSIVE (74)

56 34 53 35 12 11 11 18 28 41 49 33 61 48 4 24 50 9 2 33 44 16 40 54 29 41 56 45 36 8 1 48 10 56 12 31 41 7 66 12 34 45 31 66 19 46 5 21 65 47 61 58 46 41 48 9 67 21 8 61 53 34 30 36

34 PRUDENTIAL FINANCIAL (55) PUBLIC SERVICE ENTERPRISE GROUP (318) 61 20 PUBLIX SUPER MARKETS (69) 29 PULTEGROUP (284) 4 PVH (404) 54 QUALCOMM (124) 17 QUANTA SERVICES (278) 27 QUEST DIAGNOSTICS (324) 37 QURATE RETAIL (216) 53 RAYMOND JAMES FINANCIAL (367) 2 RAYTHEON TECHNOLOGIES (57) 51 REALOGY HOLDINGS (445) 47 REGENERON PHARMACEUTICALS (354) 9 REGIONS FINANCIAL (434) 34 REINSURANCE GROUP OF AMERICA (207) 40 RELIANCE STEEL & ALUMINUM (343) 62 REPUBLIC SERVICES (297) 20 RITE AID (132) 59 ROBINSON (C.H.) WORLDWIDE (191) 13 ROCKET COMPANIES (194) 15 ROCKWELL AUTOMATION (440) 52 ROPER TECHNOLOGIES (488) 55 ROSS STORES (242) 8 RPM INTERNATIONAL (489) 60 RYDER SYSTEM (357) 10 SALESFORCE.COM (137) 54 SANMINA (418) 66 SCHEIN (HENRY) (298) 53 SCHWAB (CHARLES) (251) 32 SCIENCE APPLICATIONS INTL. (412) 22 SEABOARD (406) 34 SECURIAN FINANCIAL GROUP (421) 26 SELECT MEDICAL HOLDINGS (487) 61 SEMPRA ENERGY (255) 8 SHERWIN-WILLIAMS (162) 18 SINCLAIR BROADCAST GROUP (465) 21 SMUCKER (J.M.) (378) 5 SONIC AUTOMOTIVE (308) 61 SOUTHERN (146) 3 SOUTHWEST AIRLINES (336) 65 SPARTANNASH (329) 19 S&P GLOBAL (393) 20 SPROUTS FARMERS MARKET (437) 19 SQUARE (323) 28 STANLEY BLACK & DECKER (209) 23 STARBUCKS (125) 35 STATE FARM INSURANCE (39) 9 STATE STREET (252) 40 STEEL DYNAMICS (319) 13 STONEX GROUP (58) 39 STRYKER (212) 13 SYNCHRONY FINANCIAL (187) 64 SYNNEX (117) 65 SYSCO (60) 48 TARGA RESOURCES (364) 24 TARGET (30) 29 TAYLOR MORRISON HOME (452) 26 TENET HEALTHCARE (167) 42 TENNECO (199) 42 TESLA (100) 54 TEXAS INSTRUMENTS (210) 2 TEXTRON (265) 52 THERMO FISHER SCIENTIFIC (95) 42 THOR INDUSTRIES (368)

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PASSIONS 1

WATCHES

Green Machines Olive, pistachio, emerald, or British racing—it’s easy being green with these stunning timepieces. BY DANIEL BENTLEY

F O R T U N E J U N E /J U LY 2 0 2 1 2 2 1

IT HAPPENS IN THE WORLD of fashion all the time. Designers working in far-ﬂung ateliers come together in Milan, Paris, or New York to show off their latest creations and discover they’ve stumbled upon a common theme. It might be ﬂoral prints, high waistlines, low necklines: No matter how hard they try to be original, they converge on the inevitable. The watch world is no different. Every year at Swit-

zerland’s biggest trade shows, a singular idea emerges from the throng. In 2019, it was “two-tone” watches in yellow gold and steel. The year prior it was watches with dual time zone or GMT complications. In 2021, watch designers in Geneva, Paris, and Iwate Prefecture, Japan, all came to the same conclusion. For a year when we see the shoots of renewal climbing high, the most perfect color is green.

1. AU D E M A R S P I G U E T R OYA L O A K S E L F-W I N D I N G CHRONOGRAPH $ 74 ,8 0 0

Limited to just 125 pieces, this classic sport chronograph is reimagined in yellow gold with a deepgreen dial. 2. R O L E X OY S T E R PERPETUAL 36 $ 5 ,6 0 0

The revamped Oyster Perpetual line makes a big statement as an entry point in the Rolex catalog. These time-only watches come in shades of candy pink, turquoise blue, yellow, and coral red, but it’s the green—reminiscent of a classic British racing car— that we think will be a future museum piece.

3. B R E I T L I N G PREMIER B09 CHRONOGRAPH 40 $ 8 ,4 0 0

Breitling continues its winning line of heritageinspired watches with this pistachio-dialed chronograph. The 40mm case houses a two-register handwound chronograph movement, the likes of which put Breitling on the map in the glory days of aviation. 4 . P AT E K P H I L I P P E TWENTY~4 $ 27,8 0 0

Patek Philippe’s commitment to beautiful watches PHOTOGRAPHS BY JANELLE JONES; BOTANICAL ART BY SOPHIE PARKER; STYLING BY ALEX SILVA

PA S S I O N S — WATC H E S

2 2 2 F O R T U N E J U N E /J U LY 2 0 2 1

for women is evident in this steel piece with a bezel set with 160 diamonds. The olive-green dial in a sunburst pattern shines brilliantly in the light, but will take on more subdued hues for the evening. 5. G R A N D S E I KO SBGJ251 $ 6 ,8 0 0

Japan’s premier watchmaker creates elegantly finished cases and technically innovative movements, but it’s the brand’s exquisite dial finishing that sets it apart from many of its European competitors. The soft-green dial and rose-gold accents of this dual time zone watch were inspired by Shunbun, the celebration of the vernal equinox. 6. T U D O R B L A C K B AY F I F T Y- E I G H T 1 8 K $ 1 6 ,8 0 0

This year, Tudor took everything we thought we knew about the brand and turned it upside down. Long the reigning champ of sub-$5,000 dive watches in steel, Tudor recast its popular Black Bay Fifty-Eight model in solid silver, and this model in 18-karat brushed yellow gold. 7. C A R T I E R TA N K M U S T $TBA

The Cartier Tank Must recalls Cartier’s heady 1980s when every Wall Street trader and spouse rocked one. These bold unisex watches, also available in red and blue with matching alligator straps, take the classic design in a fun new direction. (To be released in September.)

Trust your source. Trust your decisions.

THE CARTOGRAPHER

2 2 4 F O R T U N E J U N E /J U LY 2 0 2 1

NORWAY 21.4%

40% 30%

GERMANY 27.5%

50%

COMPOSITE CORPORATE EFFECTIVE TAX RATE

EUROPE

20%

10%

RUSSIA 18.8%

U.K.: 18.4%

IRELAND: 12.0%

ISLE OF MAN: 0% GUERNSEY, JERSEY: 0% CANADA 24.6%

FRANCE: 30.3%

MEXICO 26.8%

SPAIN: 25.0%

U.S. 24.6%

TURKS AND CAICOS ISLANDS 0%

BRITISH VIRGIN ISLANDS 0%

CHINA 23.5% AUSTRALIA 29.9%

CAYMAN ISLANDS 0%

INDIA 45.7%

BRAZIL 30.1% OCEANIA THAILAND 22.5%

S. KOREA 25.6%

JAPAN 27.2%

CHILE 31.1% ARGENTINA 29.3%

CHANGE IN THE U.S. CORPORATE STATUTORY INCOME TAX RATE AM

COMBINED FEDERAL AND AVERAGE STATE RATES

U.S. RATE 40 PRESIDENT BIDEN’S PROPOSAL 32.3% 30 25.9% AVERAGE OF 22 OECD COUNTRIES

25.1%

20 1980

1990

2000

INFOGRAPHICS BY NICOLAS RAPP

2010

2019

UT SO

BIDEN VS. THE WORLD ON TAXES

50%

IT’S NOT EXACTLY a phrase that makes the heart beat faster—“corporate income tax.” But suddenly it’s a hot topic. President Biden is proposing a hefty increase in the U.S. rate, and the OECD is trying to herd 139 countries into agreeing on a global minimum corporate tax. Why? In a digital economy based on services and intellectual property, multinational companies can easily and legally shift profits into low-tax or no-tax jurisdictions. The result is a global competition that’s been pushing rates down for 40 years. Only the U.S. has a minimum tax, enacted in 2017. The Biden administration wants the OECD group to get on board, leaving fewer options for profit-shifting. The figures in the map above are OECD calculations of eﬀective tax rates—the total tax burden companies face, accounting for rates as well as for other tax rules in each country, on average. Of course, the rates don’t reflect what companies actually pay. Every year, many large, profitable American corporations game the system to avoid paying any U.S. income tax at all. —GEOFF COLVIN

SOURCES: OECD; 2019 DATA, ASSUMING LOW INTEREST AND INFLATION RATES; CHRIS EDWARDS, CATO INSTITUTE

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