fortune--2020-02-18--What the candidates aren’t telling you: America’s heading for a tax on the middle class

The odds are excellent that middle class Americans will get hit by a giant value-added tax (VAT) in the next decade. The arrival of a VAT would move the U.S. much closer to the fiscal policies of Europe and Asia, whose nations place a lot more of the burden for funding the government on autoworkers, secretaries, nurses, and the rest of the non-affluent. Says Brian Riedl, an expert on fiscal policy at the conservative Manhattan Institute: “If America wants to spend like Europe, and it does, America will have to tax like Europe.”
A VAT is the last thing the candidates vying for the White House want to talk about. The contenders for the Democratic nomination, from Sanders and Warren on the left to Biden and Buttigieg in the center, swear that no goal is more vital than raising living standards for the middle class. For all of them, the idea of tax hike that would shrink take-home pay for the average family is unthinkable. Across the aisle, President Trump is proposing another income tax cut for working families if voters award him a second term.
Although no major politician has proposed a VAT since Senator Ted Cruz (R-Tx) in 2016, the nation’s fiscal future is looking so dire that importing the potent revenue-raiser––a fiscal pillar of every other major economy––is looking inevitable. It isn’t the Democratic candidates’ proposals for new spending that make the VAT a near-certainty. The trajectory of U.S. outlays is so steep that even without costly new programs, a gigantic fresh source of funding will be needed to forestall a crisis. In his recently-released federal budget blueprint for fiscal 2021, Trump proposes no structural reforms to the two entitlements driving the unsustainable trend in spending: Social Security and Medicare. In his State of the Union Address, Trump didn’t mention the dangers of fiscal debt or deficits, the biggest threats to our future prosperity, at all.
Here’s a snapshot of America’s fiscal quagmire a decade from now, as projected by the Congressional Budget Office. I’ve adjusted the CBO forecasts from its “The Budget and Economic Outlook: 2020 to 2030,” released on January 20, with its “alternative” scenario from last August. The CBO is required to base its predictions on current law, so it assumes, for example, that Trump tax cuts won’t be extended when they’re scheduled to sunset in 2026. The alternative budget projects tax reductions and spending increases now in force will be renewed. Since Congress almost always votes to keep existing programs going, the alternative budget is more realistic—and even scarier.
According to the CBO’s alternative forecast, federal spending will jump from $4.45 trillion in 2019 to $7.375 trillion in 2029, driven by an almost 80% rise in outlays for entitlements. Spending would balloon over those 11 years from 22.6% of the GDP to 24%. Although revenues are also projected to grow briskly, the rise of expenses far outstrips dollars collected in taxes, driving the federal deficit from $984 billion last year to $2.156 trillion in 2029. At that point, the U.S. would be borrowing almost 25 cents for every dollar it spends. If the average rate the U.S. pays on its debt rises to just 3%, the annual interest burden would triple to $1 trillion, amounting to 15% of all expenditures.
By 2029, total federal debt would rise to $29.6 trillion, or 104% of national income, compared to last year’s 79%, reaching the highest level since 1946. All added together, the mounting deficits over the next decade total $15.5 trillion.
Keep in mind that these numbers assume no wars, no recessions, no new spending programs, and a continuation of extremely low interest rates. But even in this bluebird future, the size of the deficits pose such a serious threat to our future prosperity that Congress will be forced to choose between a financial catastrophe and radical action.
The new vehicle essential of filling the burgeoning hole is a VAT. At each link in the chain of production for cars or toys, manufacturers pay a cash duty to the government based on their profit. This duty is reimbursed by the supplier they sell to, thus gradually driving up the costs by the amount of tax. The VAT is folded into the price at the checkout counter. So consumers pay the full tax, just as they pay sales taxes. But VATs operating differently than sales tax, because it’s manufacturers, not retailers like a corner grocery or toy store, that send the cash to the government. Since manufacturers and other businesses are audited regularly, they aren’t likely to cut corners. That minimizes fraud, and makes the VAT a powerful tool for collecting revenue.
Raising the VAT typically provokes little political resistance because the increases are included into the total price shown on sales receipts, and not broken out as a separate item like sales taxes, they aren’t obvious to consumers.
Of the 36 OECD members, the U.S. is the only nation without a VAT. It’s rarely been proposed by American politicians. They typically fear that voters will bristle at what’s widely perceived an enabler of big spending in Europe. During the 2016 presidential campaign, Ted Cruz championed a 19% VAT that would raise sufficient funds to eliminate all payroll, corporate, and estate taxes, and install a flat federal income tax of 10%. Even though Cruz’s VAT was designed to simplify America’s Byzantine tax system by replacing a welter of levies, his proposal fell flat.
America will soon be consumed by a debate on how to escape a looming fiscal crisis, and the VAT will be the central topic. America will get over its aversion to a VAT for a simple reason: It has to. The VAT––probably in tandem with rising payroll taxes––is the only revenue-generator mighty enough to fill the burgeoning budget hole.
To put the U.S. on firm fiscal footing, a reasonable goal is achieving a balanced budget by 2029. It’s clear that the political class has little interest in taming entitlements, so all of the shortfall would need to be filled exclusively by new revenue. To get there, the U.S. would have to raise an additional $15.5 trillion in taxes, the amount equal to total deficits from 2020 through 2029. Taxing the rich won’t get us anywhere close. According to Riedl’s calculations, raising the top income tax rate to 70%, imposing a 6% wealth tax, 50% duties on capital gains and 77% on estates, would garner between $4 and $8 trillion over ten years, meaning that the maximum number would reach around half the total required.
It’s important to note that all other OECD nations rely for most of their revenue on two broad-based levies that draw heavily from the middle class, the VAT, and payroll taxes. The U.S. is much more reliant on income tax, which contributes 50% of all revenue. That’s why America’s tax system is by far the world’s most progressive, measured in the oversized share of taxes contributed by high-earners and the wealthy. But the lack of a VAT, and relatively light burden of payroll taxes, leaves lots of room for the U.S. to tap the masses that are by far the top revenue-generators across the globe.
Assume that the U.S. goes with a levy that’s broad based—the broader the base, the lower the rate needed to raise the same number of trillions. The CBO estimates that a VAT excluding only rents, education, and health care costs reimbursed by the government raises $384 billion for each point imposed over ten years. Getting to $15.5 trillion would require a VAT of 40%.
Obviously, a VAT remotely that size won’t happen. The U.K., France, Spain, and Italy all have VATs in the low to mid 20s. But marrying a VAT and a much higher payroll tax could raise the full $15.5 billion, while putting the U.S. in the fiscal mainstream of OECD nations. Today, the U.S. rate supporting Medicare, Medicaid, and Social Security stands at 15.3%, an exceptionally low number compared to almost all other OECD nations.
Like the VAT, payroll taxes are a redoubtable tool for amassing revenue because so many people pay them, and in most countries, pay a lot of them. The CBO estimates that in the U.S., a one point increase raises $900 billion. If the U.S. chose to collect half the $15.5 billion from launching a VAT, and the other half from lifting the payroll tax, it could raise the full amount, and balance the budget, with a VAT of 20%, and a payroll tax increase of 8.5 points to 23.8%.
The shift towards this twin solution could take either a long or a short route. In the long scenario, the U.S. enacts no big new spending plans, and we don’t suffer a major recession in the next few years. Half of the 73 million baby boomers are already retired, the the rest will go on Social Security over the next decade. The political will to reduce benefits is already weak and will only get feebler as boomers advance into their 70s. Congress is likely to work around the edges by, for example, paring some low priority spending, raising rates for high earners, and reducing military spending.
But those efforts will do little to shrink the swelling shortfalls. “It’s hard to imagine the prospect of $2 trillion deficits not spooking the financial market and voters,” says Riedl. “Rates could spike and the stock market sell off, sparking a recession.” Congress would declare that an upheaval is needed to prevent a crisis, and the only way to save the prevent a meltdown is grabbing the VAT-payroll tax lifeline.
The timeframe shortens if Congress and a new administration secure an agenda of big new spending. For example, both Bernie Sanders and Elizabeth Warren are championing Medicare For All blueprints that would require more than $30 trillion in new funding over the next decade, twice the total deficits already projected. Leaving aside both candidates’ additional plans in green energy and universal pre-k child care, the health care initiatives alone would drive annual deficits way over the $2 trillion danger mark as soon as they’re enacted.
Then, the crisis would lurk around the corner, not down the road. Congress would move swiftly to pay for the new spending piled on top of today’s trillion-dollar shortfalls the only way they can be paid for: by imposing a VAT and a payroll tax hike. And those burdens would be much bigger than the 20% VAT and 8 point payroll tax increases needed to cover the $15.5 billion deficit, since future deficits would be twice that size.
A few years ago, this writer invented the term “HENRYs” as an acronym for “High-Earners Not Rich Yet.” It refers to families that earn from $250,000 to $500,000 a year, whose burden from taxes, mortgages, and saving for their kids’ private colleges is so heavy that although they’re affluent, they’ll probably never be able to put enough aside to become truly rich.
America’s budget crisis has inspired me to coin a new name for the folks who are going to be hit by tomorrow’s huge tax increases. They’re the “MITTs,” the Middle Income Tax Targets. They’ll be the new ATMs because, as the legendary robber Willie Sutton used to say about banks, they’re where the money is. The tragedy is that if no major changes are implemented, the big VAT and payroll taxes the MITTs will be paying won’t be invested in making their lives better, but in funding the healthcare and retirement benefits for the Baby Boomers. These days, the HENRYs might better be called the HENRIs, a Gallic-sounding take meaning high-earners, not rich indefinitely. The MITTs will have a lot in common with European workers in the years to come. They just don’t know it yet.
More must-read stories from Fortune:
—Can you catch it twice? Answers to 5 pressing coronavirus questions
—Why China is still so susceptible to disease outbreaks
—Bernard Arnault was briefly the world’s richest man. Then coronavirus struck
—Will summer kill the coronavirus?
—My boss wants me to travel during the coronavirus. Do I have to go?
Subscribe to Fortune’s Brainstorm Health for daily updates on biopharma and health care.


fortune--2020-02-18--Which are the best companies to work for?

In China , oil won ’ t be the only energy sector battered by the coronavirus

This is the web version of CEO Daily. To get it delivered to your inbox, sign up here.
Good morning.
Today is the day Fortune releases its annual list of the 100 Best Companies to Work For. It’s our most popular list, in part because job seekers use it vigorously. But increasingly, I believe the list also has become a critical measure of the underlying health of companies.
That’s because ranking high on this list isn’t just a function of generous pay, benefits and perks—although those certainly help, as Ultimate Software (#2) demonstrates. It’s also a measure of how engaged a company’s workers are, how appreciated they feel, how aligned they are with a company’s purpose, and how satisfied they are with its pursuit of that purpose. At a time when human capital is the most important asset companies have, measuring that capital—which is what the 100 Best Companies methodology requires—may be the best proxy for determining long-term health.
So who ended up on top? Once again, it wasn’t a tech company—although Cisco (#4), Workday (#5) and Salesforce (#6), as well as Ultimate, all ended up in the top 10. Instead, top of the list for a second year in a row goes to Hilton—known not for nap pods, foosball tables and free gourmet food, but rather for its commitment to the premise that if it treats its workers well, they will treat customers well. Worth noting another hospitality company—Kimpton—also made the top 10, and Hyatt (#28), Marriott (#38) and Four Seasons (#100) made the cut as well.
You can find the entire list here.
And an important footnote. Because the methodology behind this list, which is managed by our partners at Great Place to Work, is so intensive, we can only administer it to companies that choose to apply. But we strongly recommend every company do so. Even if you don’t make the list, the process provides an important window into your company’s culture. You can apply for next year here.
News below.
Alan Murray
@alansmurray
alan.murray@fortune.com
TOP NEWS
Bezos billions
Jeff Bezos isn't just trying to get us off Earth—now he's also setting up a global initiative to save our planet, funded with $10 billion of his money "to start." It's the Amazon CEO's biggest philanthropic move by far. Bezos: "We can save Earth. It’s going to take collective action from big companies, small companies, nation states, global organizations, and individuals." Instagram
Apple warning
Asian and European markets fell after Apple warned Covid-19 would hit its revenues by hitting both production and sales in China. Apple is the first major U.S. firm to acknowledge the coronavirus's effect on its bottom line. It's not clear how big the hit will be, but Apple is no longer anticipating revenues of up to $67 billion this quarter. Fortune
HSBC cuts
HSBC's annual profits fell by a third last year, and it has revealed plans to cut around 15% of its global workforce—that's 35,000 jobs to be cut; way more than the 10,000 analysts were expecting. The bank also warned about the coronavirus' impact on its profits this year. Its share price consequently fell by over 5%. Bloomberg
Legg Mason
Asset manager Legg Mason, the future of which has been uncertain for almost a year, may be bought by rival Franklin Resources. According to the Wall Street Journal, the deal could be announced as soon as today, though the likely price is not clear. WSJ
AROUND THE WATER COOLER
Tech trust
Microsoft CEO Satya Nadella spoke to Fortune's Andrew Nusca about (among other issues) how the tech industry can win back public trust. Nadella: "As technology providers, we are the first responders. We have to build the core infrastructure, and even the engineering processes, to ensure that there is more trust in technology." And on tech regulation: "We can’t wait for [regulators]—so the question is, How do we regulate ourselves?" Fortune
Zuckerberg pushback
So, how did Mark Zuckerberg fare with his attempt to lobby the EU's top brass on issues around tech regulation? As always, not very well. The Facebook CEO reheated his "we welcome regulation" pitch (see this FT op-ed) to little effect. EU fundamental rights chief Věra Jourová: "Facebook cannot push away all the responsibility. Even if we come with regulation, they will never solve all the problems…It will not be up to governments or regulators to ensure that Facebook wants to be a force of good or bad." Politico
Amazon competition
The BBC has an epic piece on Amazon's data-fueled rise, and the competition investigations and privacy concerns that its approach has now sparked. As EU digital policy and competition chief Margrethe Vestager puts it: "We would never accept in a football match that one team was also judging the game. Amazon gets the details of all the retailers and all the shopping that takes place. What you look at, what you look at but don’t buy, what you look at next, how you pay, how you prefer your shipping. All of that rich data." BBC
Alstom shares
Alstom investors don't seem to like the French company's deal to buy the rail division of Canada's Bombardier, most likely because of the regulatory scrutiny it will bring—the European Commission nixed a merger between Alstom and Siemens. French and German unions seem cautious about the new deal. Reuters
This edition of CEO Daily was edited by David Meyer.


fortune--2020-02-18--The safe haven sector that’s tearing past tech stocks and the S&P 500 this year

This studio is behind the murals at some of the world ’ s top hotels

This is the web version of the Bull Sheet, Fortune’s no-BS daily newsletter on the markets. Sign up to receive it in your inbox here.
Good morning, everyone. We’re back from a long weekend, and all eyes are on Apple and, in the banking world, HSBC. We delve into that, and more.
Markets update
Let’s start out east. The Asian markets are down across the board. But one significant segment of the Chinese economy is finally getting back to business. The Macau casinos are set to reopen on Thursday.
Here in Europe, the major bourses are down, as are the U.S. futures. Crude is falling too. Gold and the dollar are up.
The big news overnight came from Apple, which issued a rare sales warning. The culprit? Yep, coronavirus. Elsewhere, shares in HSBC fell 4% in early trading Tuesday as the troubled bank gave more details about its planned job cuts and pressed the pause button on buy-backs.
Meanwhile, the latest coronavirus data shows the outbreak is getting…well, no worse. The global infection tally has topped 73,000, and the death toll hit 1,868. That’s an increase of nearly 500 deaths since this time Friday.
Let’s look further into the numbers.
Taking stock
Bull Sheet today is one-month-old. But an even bigger anniversary happened yesterday—it’s been one month since Chinese authorities came clean about the coronavirus outbreak, setting off the global markets.
In that period, exchanges in Hong Kong (down 5%) and Shanghai (down 3%) are hurting. But the major European and U.S. indexes are in the green, even after today’s weak start.
It hasn’t all been smooth sailing on this side of ground zero. Drill down a bit further, and clear winners and losers emerge.
Care to guess which sector is the biggest loser?
Scroll down.
There’s something in this chart that jumped out at me. I’ll get to that in a moment. First, let’s go the lone red line in the S&P 500. Yes, it’s the S&P Energy sector, which is down 9.78% (down 10.2% YTD).
Such a fall is probably to be expected when the global demand for oil tanks, along with the price of crude. But the decline in energy stocks predates 2020. The sector is down 23% over the past three years, and down nearly one-third over the past five years. A slowing global economy and the gradual greening of industry are two mega trends that will continue to weigh on this sector long after the coronavirus has run its course.
What caught my eye is the biggest gainer of the bunch: utilities. As any fund manager will tell you, utilities are a classic safe haven. They pay fat dividends, and so look awfully attractive when uncertainty is high. That’s the textbook answer. There’s something else going on though. With bond yields so low, investors are looking for something—anything—safe that packs a decent return. And that makes utilities doubly attractive.
There’s a third explanation, particularly pronounced in Europe, that could explain the market’s newfound love for utilities. The transition from the burning of fossil fuels to electrification makes even stodgy old companies in the power plant business suddenly exciting again. Without utilities, your Tesla isn’t going anywhere, the thinking goes.
This recent charge in utility stocks will be something to watch.
I’ll see you here tomorrow.
Bernhard Warner
@BernhardWarner
Bernhard.Warner@Fortune.com
Today's reads
Fracking threat. Cheap gasoline and diesel prices at the pump—you can thank coronavirus for that—belie bad news for the U.S. fracking industry, writes Erik Sherman in Fortune. Oil prices have already sunk to a point where new fracking is barely profitable, if at all. Some experts see parallels with the opposite situation 20 years ago when a massive shock reduced production, sending oil prices soaring over the next decade.
Apple miss. As we mentioned above, Apple doesn’t expect to meet its revenue guidance for the March quarter due to work slowdowns and lower demand caused by the coronavirus outbreak in China. The company said that the iPhone, which generates the bulk of its revenue, is temporarily constrained due to production ramping up more slowly than anticipated. Not only that, but demand for iPhones has dropped because stores in China have been closed or operating with reduced hours, the company said. Apple, which had forecast revenue of $63 billion to $67 billion for its second quarter ending in March, didn’t provide an updated estimate.
Chemical reaction. The first U.S. trial over a herbicide called dicamba has landed Bayer and its German rival BASF with another potentially multi-billion-dollar problem. Jurors in federal court in Missouri awarded $265 million Saturday to a farmer who blamed the herbicide for destroying his peach orchards. The companies now face more than 140 lawsuits over allegations that dicamba wreaked havoc across the Midwestern U.S. when it drifted onto crops that weren’t engineered to resist it. Separately, Bayer is seeking to settle thousands of lawsuits claiming exposure to its Roundup weedkiller causes cancer.
Market candy
Turn on, tune in, cash out. The likes of psilocybin, ketamine and a handful of other advance psychedelics are emerging from the darkness "as a potential elixir for a murderers’ row of psychiatric afflictions, including OCD and PTSD, opioid addiction, alcoholism, [and] eating disorders," Jeffrey O'Brien vividly details in Fortune. And all that buzz is attracting deep-pocketed financiers aiming for IPOs, not to mention VCs starting psychedelic funds. Do yourself a favor and read this feature. It's a wild ride.


fortune--2020-02-18--Coronavirus recovery: Why it’s so hard for China’s factories to get back to work

China’s industrial complex is cautiously returning to work following a prolonged shut down that began with a four-day national holiday on January 25 but was extended for two weeks as China attempted to contain the spread of the deadly Covid-19.
Policymakers ordered factories back into action on February 10, wary that the prolonged hiatus would threaten China’s economic growth. However, more than a week later, production lines remain eerily silent as millions of workers under restricted movement due to a virus that has infected 73,000 and killed close to 2,000 struggle to get back to work.
Commutable disease
According to China Labour Bulletin, China’s 288 million migrant workers—often rural residents who travel to cities in search of work—constitute over a third of China’s total work force, and 30% of them hold jobs in manufacturing. As China scrambled to contain the viral spread, local governments shut down train lines and bus routes, essentially stranding the millions of laborers who had returned to their home towns to celebrate Chinese New Year.
Workers walk at a shipyard in Nantong in China’s eastern Jiangsu province on February 10, 2020. Millions of people in China were supposed to return to work on February 10 after an extended holiday to slow the spread of the new coronavirus. STR/AFP via Getty Images
“As far as we know from the workers we have talked with, many of them are still in their home town and many of them are finding it very difficult to get back to the city they work in,” said Roy Leung, policy and education officer at Hong Kong-based labor advocates Worker Empowerment.
According to analysts at Nomura, as of February 13 only 21.3% of migrant workers had returned to the cities where they work, compared to a “return rate” of 84.9% at the same point last year. The Japanese finance firm used data from Baidu’s Migration Index—a map launched in 2016 by Chinese search engine giant Baidu to track travel patterns across the Lunar New Year holiday—for its estimate.
Despite the labor shortage, factories—including those owned by giants like Tesla, Airbus, Toyota and General Motors—are starting to reopen but are a long way from returning to full capacity. A survey conducted last week by the American Chamber of Commerce of 109 companies along the Yangtze River Delta—an economic corridor that generates 20% of China’s GDP—found that 78% didn’t have sufficient staff to resume full production.
“The biggest problem is a lack of workers as they are subjected to travel restrictions and quarantines, the number one and number two problems identified in the survey. Anyone coming from outside the immediate area undergoes a 14-day quarantine,” Chamber president Ker Gibbs told Reuters.
Health and safety
As the central government pressured factories to return to work, regional authorities—wary of spreading contagion—issued guidelines on how to handle workers who do return. Common precautions include establishing temperature checks at factory entrances, ensuring surgical masks are worn, and encouraging employees to eat lunch alone to reduce the risk of transmission. But these measures are hard to enforce.
According to Leung, some factories have simply used carboard boxes to partition cafeteria tables, creating solo-dining spaces, while other factories are requiring employees to bring their own surgical masks—despite widespread shortages on the protective gear. Even greater problems exist in employee dormitories, where staff often bunk up to 12 in a room, sometimes sharing one bathroom for the entire floor.
“Small factories typically aren’t able to provide dormitories but larger manufacturers like Foxconn still provide some staff with cheap accommodation. In bigger companies, I would say 40-50% [of workers] live in dormitories and ensuring a clean living space will be more important than sterilizing the factory floor,” Leung said.
Taiwan’s Foxconn, which manufactures iPhones and iPads for Apple, operates 12 factories across China and employs over a million people, making it China’s single largest private employer. According to Reuters, only 10% of Foxconn’s laborers had returned to work as of February 10, when the manufacturer was given permission to reopen—provided factories check employee temperatures twice a day and disinfect work surfaces daily.
Foxconn didn’t respond to Fortune‘s interview requests, but it has denied the Reuters report in a statement filed to the Taipei stock exchange. The statement also denied the report that Foxconn is targeting 50% production by the end of the month. The manufacturer didn’t provide details on its actual production goals, however the fallout from its slowdown is already taking effect.
In a memo to shareholders Monday, Apple CEO Tim Cook said the Californian company would miss its revenue projections for March, writing that “worldwide iPhone supply will be temporarily constrained.”
More must-read stories from Fortune:
—Can you catch it twice? Answers to 5 pressing coronavirus questions
—Why China is still so susceptible to disease outbreaks
—Bernard Arnault was briefly the world’s richest man. Then coronavirus struck
—Will summer kill the coronavirus?
—My boss wants me to travel during the coronavirus. Do I have to go?
Subscribe to Fortune’s Brainstorm Health for daily updates on biopharma and health care.


fortune--2020-02-18--100 best big companies to work for

100 best big companies to work for

Running a large multi-national corporation isn’t easy. And when you truly care about workplace culture, focusing on the needs of each individual employee makes it that much more difficult, especially when you’re looking after the care of hundreds of thousands of dedicated workers and their families.
When we compile our ranking of the 100 Best Companies to Work For each year, we take into account the sentiments from employees from every area of each business. Responses to our survey are considered evenly, weighing the thoughts and experiences of executives equally with front-line workers. But when we look at the challenges faced by large global companies, we realized that ranking them alongside smaller businesses doesn’t always seem fair, since the business challenges are much different depending on the size and scope of each company.
For the second year running, we’ve compiled a list of the Best Big Companies to Work For, recognizing the efforts and successes of businesses that have more than 100,000 employees—and that have created a Great Place to Work For All.
This year’s ranking boasts 18 large multi-national organizations that have learned how to build trust across their global organizations, and whose employees have said they love their employer. You’ll see a number of recognizable brands that don’t appear on our list of the 100 Best, but whose engagement scores are significantly high when taking their workforce size into account. Each one of them have made a commitment to building a stellar workplace culture and have created a Great Place to Work For All.
1. Hilton
Courtesy of Hilton
Number of employees globally: 170,927
Worldwide revenue: Confidential
Data provided on: Aug. 27, 2019
Industry: Hospitality
Industry Vertical: Hotel/Resort
Rank on 2020 100 Best Companies: 1
Founded: 1919
Headquarters: McLean, Va.
Employees say:
“The importance Hilton places on understanding other cultures as a part of a global hospitality company cannot be understated. The opportunity to travel is a phenomenal perk and one that keeps many people loyal and dedicated to Hilton for many years.”
Read Great Place to Work review here.
2. Ernst & Young LLP
Courtesy of EY
Number of employees globally: 260,569
Worldwide revenue: 34,800,000,000
Data provided on: Aug. 23, 2019
Industry: Professional Services
Industry Vertical: Consulting—Management
Rank on 2020 100 Best Companies: 25
Founded: 1894
Headquarters: New York, N.Y.
Employees say:
“As a global organization with great complexity, EY presents healthy challenges which make it an interesting and dynamic place to work.”
Read Great Place to Work review here.
3. Hyatt Hotels Corporation
Courtesy of Hyatt
Number of employees globally: 108,124
Worldwide revenue: 4,454,000,000
Data provided on: Aug. 28, 2019
Industry: Hospitality
Industry Vertical: Hotel/Resort
Rank on 2020 100 Best Companies: 28
Founded: 1957
Headquarters: Chicago, Ill.
Employees say:
“There are opportunities for advancement all over the world. It’s a great work environment with great co-workers.”
Read Great Place to Work review here.
4. KPMG LLP
Courtesy of KPMG
Number of employees globally: 108,124
Worldwide revenue: 28,960,000,000
Data provided on: Aug. 27, 2019
Industry: Professional Services
Industry Vertical: Other
Rank on 2020 100 Best Companies: 32
Founded: 1897
Headquarters: New York, N.Y.
Employees say:
“My office is always willing to get their people to where they want to be within the organization whether that is a service line change, global rotation, or interest in a non client facing role. This makes the opportunities endless within the firm.”
Read Great Place to Work review here.
5. PricewaterhouseCoopers LLP
Courtesy of PWC
Number of employees globally: 250,000
Worldwide revenue: 41,300,000,000
Data provided on: Aug. 21, 2019
Industry: Professional Services
Industry Vertical: Consulting–Management
Rank on 2020 100 Best Companies: 36
Founded: 1865
Headquarters: New York, N.Y.
Employees say:
“My work is varied, challenging, and always new. Working for a global network of firms with a flexible work policy means I can take my work with me as needed, and gives me the freedom to move with the firm through my professional life.”
Read Great Place to Work review here.
Courtesy of Marriott International
Number of employees globally: 250,000
Worldwide revenue: 20,758,000,000
Data provided on: Aug. 26, 2019
Industry: Hospitality
Industry Vertical: Hotel/Resort
Rank on 2020 100 Best Companies: 38
Founded: 1927
Headquarters: Bethesda, Md.
Employees say:
“The culture of Marriott International sets this company apart from any other. Everyday leaders around the globe practice taking care of their associates from kind gestures to ensuring personal needs are met.”
Read Great Place to Work review here.
7. Publix
Courtesy of Publix Super Markets
Number of employees globally: 200,274
Worldwide revenue: —
Data provided on: Aug. 23, 2019
Industry: Retail
Industry Vertical: Food/Grocery
Rank on 2020 100 Best Companies: 39
Founded: 1930
Headquarters: Lakeland, Fla.
Employees say:
“Publix cares deeply for its employees. It’s the smallest of actions, like giving birthday cards and coupons that make me feel genuinely special. I feel valued as both an employee and person, which is something that’s rare to find these days.”
Read Great Place to Work review here.
8. Accenture
Courtesy of Accenture
Number of employees globally: 477,000
Worldwide revenue: 39,573,450,000
Data provided on: Aug. 27, 2019
Industry: Professional Services
Industry Vertical: Consulting–Management
Rank on 2020 100 Best Companies: 41
Founded: 1989
Headquarters: New York, N.Y.
Employees say:
“Even though we are huge in numbers we have not lost the caring aspect of our fellow teammates. Our people continue to amaze me.”
Read Great Place to Work review here.
9. Deloitte
Courtesy of Deloitte
Number of employees globally: 109,778
Worldwide revenue: 43,200,000,000
Data provided on: Aug. 27, 2019
Industry: Professional Services
Industry Vertical: Consulting–Management
Rank on 2020 100 Best Companies: 45
Founded: 1895
Headquarters: New York, N.Y.
Employees say:
“Leaders are constantly improving their commitment to us & the environment we work in. It is very refreshing to see that in a company this size today. Loyalty to your employees went out of style years ago and yet here it is stated over and over again.”
Read Great Place to Work review here.
10. Comcast NBCUniversal
Courtesy of Comcast NBCUNiversal
Number of employees globally: 184,000
Worldwide revenue: 94,507,000,000
Data provided on: Aug. 27, 2019
Industry: Telecommunications
Industry Vertical: —
Rank on 2020 100 Best Companies: 64
Founded: 1963
Headquarters: Philadelphia, Pa.
Employees say:
“Because of our sheer size there are technical challenges that aren’t present at other companies making a good learning environment. There are many resources to help people in their careers. Management is not hesitant to invest in employees’ growth.”
Read Great Place to Work review here.
11. Bank of America
Courtesy of Bank of America
Number of employees globally: 204,489
Worldwide revenue: 91,200,000,000
Data provided on: Aug. 27, 2019
Industry: Financial Services & Insurance
Industry Vertical: Banking/Credit Services
Rank on 2020 100 Best Companies: 77
Founded: 1874
Headquarters: Charlotte, N.C.
Employees say:
“The fact that our employee base reflects the clients we serve and the communities we serve is central to our goal of making financial lives better. I lean on my network regularly and am always greeted with a willingness to help and remain connected.”
Read Great Place to Work review here.
12. AT&T
Courtesy of AT&T
Number of employees globally: 268,220
Worldwide revenue: 170,756,000,000
Data provided on: Aug. 26, 2019
Industry: Telecommunications
Industry Vertical: —
Rank on 2020 100 Best Companies: N/A
Founded: 1877
Headquarters: Dallas, Texas
Employees say:
“I’ve never seen anything, anywhere, that comes close to the level of focus on diversity we have here at AT&T. It is amazing and unlike any other company I’ve worked in. It makes us all richer, and makes me very proud to be part of this organization.”
Read Great Place to Work review here.
13. DHL Express U.S.
Courtesy of DHL
Number of employees globally: 102,540
Worldwide revenue: 18,197,669,000
Data provided on: Aug. 28, 2019
Industry: Transportation
Industry Vertical: Transport & Storage
Rank on 2020 100 Best Companies: N/A
Founded: 1969
Headquarters: Plantation, Fla.
Employees say:
“My company is like a branch of the United Nation! You meet people from all over the world and gain a great respect for different cultures. In the building I work in we have people from over 100 different nationalities that work here.”
Read Great Place to Work review here.
14. Kaiser Permanente
Courtesy of Kaiser Permanente
Number of employees globally: 215,507
Worldwide revenue: 79,700,000,000
Data provided on: Aug. 16, 2019
Industry: Healthcare
Industry Vertical: Services
Rank on 2020 100 Best Companies: N/A
Founded: 1945
Headquarters: Oakland, Calif.
Employees say:
“KP is the most mission-driven, ethical organization for which I’ve ever worked. Our leaders are incredibly supportive, they expect us to deliver our best, express their appreciation regularly and challenge u s to bring our biggest and boldest ideas.”
Read Great Place to Work review here.
15. Abbott
Courtesy of Abbott
Number of employees globally: 103,000
Worldwide revenue: 30,600,000,000
Data provided on: Aug. 26, 2019
Industry: Healthcare
Industry Vertical: Other
Rank on 2020 100 Best Companies: N/A
Founded: 1888
Headquarters: Abbott Park, Ill.
Employees say:
“A great spirit of being part of something big and important — a worldwide team, contributing, together, to improving people’s lives in vital ways. A culture and history of high achievement. Colleagues of high intelligence, ability, and integrity.”
Read Great Place to Work review here.
16. Accor
Courtesy of Accor
Number of employees globally: 284,510
Worldwide revenue: 4,020,000,000
Data provided on: Aug. 27, 2019
Industry: Hospitality
Industry Vertical: Hotel/Resort
Rank on 2020 100 Best Companies: N/A
Founded: 1967
Headquarters: National Harbor, Md.
Employees say:
“I am extremely proud of the diversity of our team – we represent so many different corners of the world and it makes us strong. I am so proud to work for this company!”
Read Great Place to Work review here.
17. Continental
Courtesy of Continental Automotive Systems
Number of employees globally: 240,000
Worldwide revenue: 49,418,600,000
Data provided on: Sept. 05, 2019
Industry: Manufacturing & Production
Industry Vertical: Automotive
Rank on 2020 100 Best Companies: N/A
Founded: 1871
Headquarters: Auburn Hills, Mich.
Employees say:
“Continental has always come up with initiatives to make this a great place to work! I love their workplace flexibility program. Continental encourages employees to grow in their careers and provides the tools and opportunities to make it possible.”
Read Great Place to Work review here.
18. TATA Consultancy Services Limited
Courtesy of Tata Consultancy Services
Number of employees globally: 400,875
Worldwide revenue: 19,000,000,000
Data provided on: Feb. 14, 2019
Industry: Information Technology
Industry Vertical: IT/Consulting
Rank on 2020 100 Best Companies: N/A
Founded: 1968
Headquarters: New York, N.Y.
Employees say:
“There is a strong respect for the individual at TCS. Management embraces employee differences, helps identify individual strengths and recognizes diversity is an asset.”
Read Great Place to Work review here.
Christopher Tkaczyk is the Chief Content Officer of Great Place to Work and is a former editor at Fortune and Travel + Leisure.


fortune--2020-02-18--Boy Scouts declares bankruptcy to face wave of child sexual abuse lawsuits

The Boy Scouts of America sought bankruptcy protection to cope with a rising tide of claims tied to sexual abuse of children in its ranks.
The group filed in Delaware early Tuesday under Chapter 11 of the U.S. bankruptcy code, which allows the organization to keep operating while it works out a plan to pay its debts and design a recovery plan.
Court papers listed liabilities of up to $1 billion and assets as much as $10 billion. The Irving, Texas-based group said it’s setting up a trust fund to compensate victims.
“The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting,” Roger Mosby, chief executive officer, said in a statement. “While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process – with the proposed Trust structure – will provide equitable compensation to all victims while maintaining the BSA’s important mission.”
Blind Eye
The Boy Scouts are the latest non-profit group to go bankrupt after allegations that they turned a blind eye to widespread sexual abuse of children in their care. USA Gymnastics and more than 20 dioceses of the Catholic Church sought court protection after facing similar claims.
The national Scout organization could seek to adopt tactics used by corporations and the church to shield its 261 local councils from claims that, according to court documents, could reach about 1,700 based on what’s known so far. The group said in its statement that the local councils haven’t filed for bankruptcy.
The Wall Street Journal previously estimated that local councils hold about $3.3 billion in assets, citing tax filings for almost 400 nonprofits registered under the Boy Scouts’ umbrella with the Internal Revenue Service.
In an apology letter to the victims, Jim Turley, National Chair of the Scouts, acknowledged the organization’s failure to protect the children. He encouraged victims to come forward with claims and said counseling is being offered.
Mass Claims
Turley said he was “truly heartbroken” that members were harmed, “outraged” at predators who committed the acts and “also outraged that there were times when volunteers and employees ignored our procedures or forgave transgressions that are unforgivable.”
Organizations facing mass individual claims, such as opioid maker Purdue Pharma LP and Catholic dioceses, have resorted to bankruptcy because it provides a controlled process for settling a large number of lawsuits while allowing them to hold on to as many assets as possible.
Such claims have been swelling. Seven states and the District of Columbia passed laws in 2019 that suspend the time limit to file civil sex abuse suits, adding to about half a dozen that already had so-called window statutes. A bankruptcy filing could short-circuit those laws by putting a final deadline on claims.
The Boy Scouts organization was founded in 1910, and until 2020, it had about 2.2 million members. But mounting lawsuits have drained its finances, forcing the Scouts to raise fees, and membership has dwindled.
The Scouts are facing about 275 lawsuits in state and federal courts and attorneys for abuse victims have provided information regarding about 1,400 more claims that have yet to be filed, the organization said in court papers early Tuesday. About 90% of the claims stem from abuse that occurred more than 30 years ago, the Scouts said.
The group suffered another blow at the start of 2020 when one of its biggest supporters — The Church of Jesus Christ of Latter-Day Saints — started its own youth organization and pulled 400,000 members out of the Scouts.
The Scouts hired Alvarez & Marsal North America LLC as its financial adviser and Sidley Austin LLP as bankruptcy counsel, court papers show. The filing also included a list of the 25 law firms representing the largest number of abuse claims.
The case is Boy Scouts of America, 20-10343, U.S. Bankruptcy Court for the District of Delaware.
More must-read stories from Fortune:
—Can you catch it twice? Answers to 5 pressing coronavirus questions
—These are the Democratic candidates who qualify for the next debate so far
—John Legere will be remembered as one of the greatest turnaround stories of all time
—Bernard Arnault was briefly the world’s richest man. Then coronavirus struck
—WATCH: Why CEOs are pessimistic about 2020 business outlook
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fortune--2020-02-17--American cruise passengers quarantined at U.S. military bases

More than 300 American cruise ship passengers, including 14 who tested positive for coronavirus, were being quarantined at military bases in California and Texas on Monday after arriving from Japan on charter flights overnight.
One plane carrying cruise passengers touched down at Travis Air Force Base in Northern California just before midnight Sunday, while another arrived at Lackland Air Force Base in Texas early Monday. The passengers will remain at the bases for two weeks.
Japan’s Defense Minister Taro Kono tweeted earlier that Japanese troops helped transport 340 U.S. passengers on 14 buses from Yokohama port to Tokyo’s Haneda airport. About 380 Americans were on the cruise ship.
The U.S. said it arranged for the evacuation because people on the Diamond Princess were at a high risk of exposure to the new virus that’s been spreading in Asia. For the departing Americans, the evacuation cuts short a 14-day quarantine that began aboard the cruise ship Feb. 5.
The State Department announced later that 14 of the evacuees received confirmation they had the virus but were allowed to board the flight because they had no symptoms. They were being kept isolated from other passengers on the flight, the U.S. State and Health and Human Services said in a joint statement.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases at the National Institutes of Health, said Sunday that an infected person who shows minimal symptoms could still pass the virus to someone else.
It’s unclear which base the 14 who tested positive for the virus went to.
Officials said the evacuees who arrived at Travis Air Force Base will be housed at a different location from the more than 200 other Americans who were already being quarantined on the base, in a hotel. Those people have been at the base since early February, when they arrived on flights from China.
No Travis airmen will have contact with the passengers, officials said.
Now that they’re in the U.S., the cruise ship passengers must go through another 14 days of quarantine at the military facilities — meaning they will have been under quarantine for a total of nearly four weeks.
Australia, Canada, Hong Kong and Italy were planning similar flights of passengers. Other governments, including Canada and Hong Kong, also will require the passengers to undergo a second 14-day quarantine.
Japan on Monday announced another 99 infections on the Diamond Princess, raising the ship’s total number of cases to 454. Overall, Japan has 419 confirmed cases of the virus, including one death. The United States has confirmed 15 cases within the country. Separately, one U.S. citizen died in China.
Americans Cheryl and Paul Molesky, a couple from Syracuse, New York, opted to trade one coronavirus quarantine for another, leaving the cruise ship to fly back to the U.S. Cheryl Molesky said the rising number of patients on the ship factored into the decision.
“We are glad to be going home,” Cheryl Molesky earlier told NHK TV in Japan. “It’s just a little bit disappointing that we’ll have to go through quarantine again, and we will probably not be as comfortable as the Diamond Princess, possibly.”
She sent The Associated Press a video of her and her husband boarding the plane with other Americans.
“Well, we’re exhausted, but we’re on the plane and that’s a good feeling. Pretty miserable wearing these masks though, and everybody had to go to the bathroom on the bus,” she said.
Some American passengers said they would pass up the opportunity to fly to the United States because of the additional quarantine. There also was worry about being on a long flight with other passengers who may be infected or in an incubation period.
One of the Americans, Matthew Smith, said in a tweet Sunday that he saw a passenger with no face mask talking at close quarters with another passenger. He said he and his wife scurried away.
“If there are secondary infections on board, this is why,” he said. “And you wanted me to get on a bus with her?”
He said the American health officials who visited their room was apparently surprised that the couple had decided to stay, and wished them luck.
“Thanks, but we’re fine,” Smith said he told them.
More must-read stories from Fortune:
—These are the Democratic candidates who qualify for the next debate so far
—2020 candidates’ positions, and records, on economic issues that affect women
—The case for a national primary
—Fortune Explains: The debt ceiling
—Can Amazon convince a federal court to depose Trump over a $10 billion Pentagon contract?
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fortune--2020-02-18--New Nike CEO plays his first round of executive job reshuffling

SARS treatments could help with the new coronavirus .
Why were they shelved ?

Nike promoted Chief Financial Officer Andy Campion to operating chief and named a new president of its consumer division, marking the first major shake-up for new Chief Executive Officer John Donahoe.
Campion is succeeding Eric Sprunk, who is retiring from the company, Nike said on Tuesday. Matthew Friend, currently CFO of a Nike division, will now take that title at the corporate level. Heidi O’Neill, head of the company’s direct business, will become president of consumer and marketplace operations.
Sprunk was once part of a cadre of Nike executives in line to replace longtime CEO Mark Parker. But the company decided to pick a chief from the outside: Donahoe, who previously ran EBay and ServiceNow, took the helm last month.
O’Neill is taking over the consumer job from Elliott Hill, who is retiring, Nike said. She will lead Nike’s global sales and its direct-to-consumer operations. Campion, meanwhile, will oversee Nike’s technology, manufacturing and supply chain. The changes happen on April 1.
“Heidi and Andy’s leadership has been instrumental in both evolving and driving Nike’s strategy over the last decade,” Donahoe said in a statement. “In their new roles, we will see them have even greater impact.”
More must-read stories from Fortune:
—With a strong consumer economy, Walmart is on the hook for any slowing sales
—$13 box of health-conscious cereal could be key to General Mills’ growth
—Land O’Lakes wants to introduce you to the farmer behind your butter
—From apple juice to antibiotics: Coronavirus epidemic could cause U.S. shortages
—WATCH: Inside the algorithm powering Stitch Fix
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fortune--2020-02-18--SARS treatments could help with the new coronavirus. Why were they shelved?

New Nike CEO plays his first round of executive job reshuffling

On Tuesday, Sanofi became the latest company to join the hunt for a vaccine for the new coronavirus. The French drug giant is teaming up with the Department of Health and Human Services’ (HHS) Biomedical Advanced Research and Development Authority (BARDA) arm to create a product that, it hopes, can make it to clinical trials in the next 12 months.
That brings the number of firms developing either a vaccine or antiviral to fight the novel coronavirus, which causes the disease now known as COVID-19, to at least a dozen. Other drug makers in the battle include Johnson & Johnson (which is also working with BARDA), Gilead, GlaxoSmithKline, Moderna, Inovio, and Novavax, as well as various public medical institutes.
Some of these firms are testing out new models of fighting the coronavirus. But at other companies, including Sanofi, researchers are essentially trying to advance therapies that were in development nearly two decades ago to combat the SARS (Severe acute respiratory syndrome) outbreak of 2003—but which were eventually shelved or put on the back burner. And that may provide a crucial lesson in the importance of funding proactive, rather than reactive, vaccine science.
Coronavirus is not a specific disease, it’s a family of pathogens that can cause everything from the common cold to more serious respiratory ailments such as SARS and MERS (Middle East respiratory syndrome). The iteration of coronavirus currently wreaking havoc across China is, according to researchers, a close family member to the strain which caused SARS.
In fact, the international body tasked with officially naming the new, novel coronavirus dubbed it “severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2)” last week because of the similarities. To avoid confusion, public health officials are continuing to call the disease associated with the pathogen COVID-19.
“Public health can provide science and evidence, but then it has to rely on the resources that are available,” Albert Rizzo, chief medical officer of the American Lung Association, told Fortune. “SARS petered out, and then it lost funding.”
In other words, once the SARS outbreak appeared containable (and contained), the urgency of creating a vaccine died down. Sanofi’s own revived project is one example of that. The company’s would-be vaccine was shelved, as was another SARS vaccine from the Baylor College of Medicine and its partners.
What makes that kind of freeze frustrating during new outbreaks is that such treatments, if advanced to clinical trials and the licensing stage, could potentially cross-protect against viruses which have evolved from their original form.
Part of this has to do with the complicated nature of vaccine and anti-bacterial drug development. Such research is inherently preventive in nature (and thus may not garner the same funding or focus as other types of drugs). Also, it’s challenging to telegraph the future evolution of a pathogen, or to create a therapy that can prevent or treat most potential forms of a bug.
But the fact that companies like Sanofi estimate it could take at least a year—if not several—for a vaccine to reach the market underscores the opportunity of seeing a treatment through to the finish line even as an outbreak wanes.
That’s something worth considering in light of this outbreak, which “is the third coronavirus that has become transmissible and lethal,” said Rizzo, referencing SARS and MERS.
More must-read stories from Fortune:
—Can you catch it twice? Answers to 5 pressing coronavirus questions
—Why China is still so susceptible to disease outbreaks
—Bernard Arnault was briefly the world’s richest man. Then coronavirus struck
—Will summer kill the coronavirus?
—My boss wants me to travel during the coronavirus. Do I have to go?
Subscribe to Fortune’s Brainstorm Health for daily updates on biopharma and health care.


fortune--2020-02-18--With ‘Sonic the Hedgehog’ big at box office, Paramount catches ‘lightning in a bottle’

Sonic the Hedgehog‘s road to theaters was a particularly long and winding one, marked by more speed bumps than Paramount Pictures executives could have imagined in greenlighting an adaptation of the popular Sega video game.
But—ironically, for a film about a fast-racing space hedgehog—Paramount’s decision to hit the brakes and postpone Sonic‘s release from last November may have been the key to its runaway success at the box office this past weekend.
Across its four-day opening frame, Sonic the Hedgehog raced past expectations to cross $70 million domestically, bringing in a worldwide haul of $113 million. That blockbuster sum made it the weekend’s top film, dethroning DC Comics adaptation Birds of Prey (and the Fantabulous Emancipation of One Harley Quinn), while also securing it the biggest-ever opening for a movie adapted from a video game, a title previously held by last year’s Detective Pikachu, a Warner Bros. title. Reviews, meanwhile, have been mixed-to-positive, an accomplishment in of itself for as critically maligned a subgenre as “movies based on video-games.”
“It was lightning in a bottle the way all of this came together,” says Paul Dergarabedian, senior media analyst at Comscore, while discussing the box office results. “That movie’s road to the multiplex has been really interesting and unpredictable, but everything came together for it in the end, and it all really worked out. Some magic’s going on there.”
Making this end result all the more impressive is the fact that, mere months ago, Paramount’s franchise hopeful was the Internet’s preferred punching bag, this thanks to a poorly received first trailer in which Sonic appeared far too humanoid—down to his nightmare-inducing set of human teeth.
“The Sonic the Hedgehog movie is blight upon this weary earth,” wrote Kotaku’s Gita Jackson at the time, echoing the less printable sentiments of many on social media. Even Sonic’s original creator, Yuji Naka, tweeted more or less the same thing, also questioning the character’s head-to-body ratio. But instead of simply staying the course like some other similarly maligned CGI fests, Paramount executives and director Jeff Fowler engaged with the criticism head-on, postponing Sonic by three months and vowing to redesign the titular character so as to bring it more in line with fans’ expectations.
This strategy appears to have worked, and then some. Social media reaction to the overhauled character design was far more favorable when another trailer arrived later last year, and the film’s stellar box-office results suggest that Sonic‘s public profile may have been raised by all the controversy, drawing more audiences to the theater on opening day.
“This is an extremely fortunate outcome for this movie,” says Dergarabedian. “Any change to a movie can create the perception there’s trouble for it, issues the movie can’t recover from. Often when movies change release dates or edit their content, those things can derail a movie. Movies where they have publicly presented behind-the-scenes issues, that can often live with the movie forever.”
Instead, Dergarabedian says that the Sonic team’s choice to overhaul its main character’s design—treating the Twitter and Facebook feedback as “free market research”—actually worked to get audiences on board with the film, either out of curiosity as to how the animators’ attempts to salvage the character would go or genuine appreciation toward their efforts to please fans.
“It made people feel like they had a vested interest in the movie,” he says. “That these filmmakers were nimble, malleable, and non-monolithic—because usually a studio is a monolith that is impenetrable—is to be commended. The director and Paramount execs can say, ‘Yeah, we listened to our audience.'”
For Paramount, Sonic‘s stellar box office marks a sorely needed victory, as well as its first franchise starter to hit big in recent years. It’s the studio’s biggest opening since Mission: Impossible – Fallout back in 2018. In a Hollywood studio ecosystem evermore dominated by Disney, the Mouse House’s biggest competitors are in dire need of tentpoles, and Paramount stumbled badly with its two most major ones last fall, ultra-expensive Will Smith vehicle Gemini Man and would-be series restarter Terminator: Dark Fate.
Moving Sonic out of a crowded November release date also may have worked in its favor. Even before Frozen II opened later that month to wipe the floor with any and all competition, especially among family audiences, it had been a crowded month at the box office, with some titles—war epic Midway, car-racing drama Ford V. Ferrari—opening decently and many others more—Charlie’s Angels, Doctor Sleep, Motherless Brooklyn, and Terminator: Dark Fate—flopping outright. By month’s end, there’d only been one major, non-Disney hit: Rian Johnson-directed whodunit Knives Out.
Opening in February, by contrast, the only recent family programming that Sonic had to contend with was Universal’s ill-fated Dolittle, hardly a major box-office threat. Despite some audience overlap with DC Comics title Birds of Prey, the two films had enough separating them for both to enjoy relatively solid weekends, with the latter film earning $20 million over Presidents’ Day weekend, bringing its domestic total to $62 million.
“On paper, November seems better because of the holiday period, with Thanksgiving and kids being out of school,” says Dergarabedian. “But they went into February, where we’ve seen Deadpool and Black Panther succeed, and they found a real opening. It was a little bit of kismet, of luck, the road for Sonic to the multiplex being this unpredictable, interesting, and ultimately a Cinderella story.”
Sonic the Hedgehog marks the most recent instance of early social media reactions to a film leading its studio’s executives to take corrective action, a growing phenomenon also seen recently in Warner Bros.’ decision to retitle Birds of Prey as Harley Quinn: Birds of Prey after the film’s wide (and softer-than-expected) opening. By contrast, Universal didn’t respond in a comparable manner to social-media criticisms lobbed at the first trailer for Cats last year. Its now-infamous rollout for the ill-fated holiday musical (complete with CGI glitches and errors that led Universal to send theaters a modified cut of the film after it had opened) led the film to become a box-office bomb, grossing jus $73 million against a $100 million budget.
Sonic, on the other hand, spent a reported $5 million to redesign the character and will have undoubtedly made back that money many times over by the time the film leaves theaters.
“They did this one for the fans—they really did,” observes Dergarabedian. “Most movies are made hoping fans will show up, but usually it’s bracing for impact, not making changes as you go along.”
Such a strategy may have been of particular importance to a video-game adaptation such as Sonic. The risk-reward proposition of adapting pre-existing IP to the big screen, especially ones with already-fierce fan followings, has been understandably tempting to filmmakers and studios over the years. But doing so successfully depends on having a clear, cinematic story to tell with a video game’s characters and mechanics—and getting fans of the original on board. Historically, this has proven challenging.
“They have a very checkered past,” admits Dergarabedian. Look at 1993’s Super Mario Bros., a critically maligned flop that was made for a then-expensive $48 million and grossed only $20.9 million, despite its source material’s global success. More recently, films like Need for Speed, Assassin’s Creed, and Tomb Raider have struggled critically and commercially, while other titles—among them Street Fighter: The Legend of Chun-Li and Max Payne—live in infamy as some of the worst movies released in their respective years.
Even the more successful video-game adaptations have generally been met with mixed results. Warcraft, considered a critical and financial disappointment upon its stateside release, is actually one of the more commercially successfully video-game adaptations, owing to its strong box-office performance overseas. it grossed $439 million worldwide, and only $47.4 million of that in the United States.
“I call it the Rodney Dangerfield of genres, because it can’t get no respect,” Dergarabedian says. “It’s a vastly untapped resource to have video-game movies, with all those concepts available, yet filmmakers and studios have been unable to connect the dots.”
Sonic the Hedgehog‘s overperformance at the box office will surely lead to talk of sequels within Paramount, but competitors should be wary of seeing the film’s surprise success as an easy-to-replicate feat, says Dergarabedian.
“Achieving this kind of success again would be very difficult,” says Degarabedian. “It was this perfect storm, this confluence of factors that came together for the movie. And let’s face it—everything we’ve said that made it a hit, had the film failed, would have been attributed to the same reasons. We would have said they shouldn’t have changed the character, shouldn’t have listened to audiences, and shouldn’t have gone to February.”
If any lessons can be taken away from Sonic‘s long road to the top, Dergarabedian says that it could be in the use of teaser trailers to test audience’s reactions to fresh takes on their most-beloved brands.
“You don’t want social media repainting the Mona Lisa because they don’t like something about it,” he says. “And sometimes, in the creative process, you have to go with your gut, and you can’t rely on market research, so I’d say it’s an anomaly rather than a new trend that the audience had a say in Sonic. But its director, Jeff Fowler, deserves all the kudos he’s getting, all the positive attention, for turning that negative into a positive.”
Such efforts, as Sonic demonstrates, may lead to big business at the box office.
“It’s good for the whole industry, because this weekend was up 22 percent over this same weekend last year, and this year’s generally well ahead of last year,” says Dergarabedian. “So much has been made of the fact that 2020 was going to be this sinkhole, and here we are, running ahead.”
More must-read stories from Fortune:
—Rob McElhenney on exploring misogyny and censorship in gaming with Mythic Quest: Raven’s Banquet
—Portrait of a Lady on Fire filmmaker Céline Sciamma on the female gaze and her “architecture of desires”
—Contagion writer, scientific adviser reflect on film’s newfound relevance amid coronavirus crisis
—Ava DuVernay on the “radical act” of black love in OWN’s Cherish the Day
—Summertime director and cast on crafting a “love letter” to Los Angeles
Follow Fortune on Flipboard to stay up-to-date on the latest news and analysis.


fortune--2020-02-18--Why 2020 marks the era of the ‘for all’ leader

When the top leadership at a company inspires everyone on their team to contribute, outperform, and realize their maximum human potential—no matter their title, identity, or experience—it helps that organization become a great place to work for all. That caliber of leadership effectiveness is something that Great Place to Work calls “For All Leadership.”
For All Leaders foster genuine human connections within and across diverse teams of people and enable every employee to bring their best and whole selves to work. These inspiring business executives transcend traditional leadership approaches that don’t keep up with today’s economic and political challenges. They embody emerging mindsets and skills like humility, empathy, and learning agility. They are the drivers of innovation and are setting the pace for the future of work.
When you read through this year’s ranking of the 100 Best Companies to Work For, you will find evidence of For All Leadership at nearly every company. From Julie Sweet’s leadership in employee development at Accenture, to Chris Nassetta’s purpose-driven work in diversity and inclusion at Hilton, to Aneel Bhusri’s employees-first programs at Workday and Marc Benioff at Salesforce’s leadership in equality, the CEOs at these top global companies have created exemplary workplace cultures in many countries around the world—and have improved the lives of the people they employ by taking the For All Leadership approach.
Great Place to Work has also just published two new reports that take a deep dive into the 30 years of data that we’ve collected from millions of employees around the world. The Future of Work examines how artificial intelligence, politics, and recessions will affect business over the coming years, and Hidden Pieces of the D&I Puzzle reveals three previously-hidden areas where business leaders can succeed by prioritizing their efforts around diversity and inclusion.
When it comes to automation, we’ve found that your employees’ biggest fear isn’t being replaced by a robot. It’s being treated like one. The Future of Work reveals which industries are the readiest for artificial intelligence, and those that face a deficit. Hint: the professional services industry is way ahead of the game. And not surprisingly, 84 percent of the companies on this year’s 100 Best Companies list have already prepared for the coming wave of automation.
These reports explain how companies of any size can best prepare for the decade ahead. By analyzing 14 years of data collected from responses to Great Place to Work’s Trust Index survey, representing nearly 4 million employees from 1,672 U.S. companies, our researchers also discovered some surprising trends that tied a company’s success to its diversity and inclusion initiatives. The reports show how D&I plays a crucial role in:
Helping companies thrive during a recession
Preserving and improving equity during restructurings and re-organizations
Improving overall performance. (When employees decline to reveal their full selves, a business can’t run at full strength.)
Our research shows that gaps in employee experiences grow at companies that engage in corporate restructuring, specifically mergers and acquisitions, divestitures, and layoffs. In the reports, we identify the key experiences employees have at companies that have thrived during previous economic downturns. In fact, companies that engage in one or more of these activities typically have an employee experience that is 45% greater than companies that did not restructure.
For All Leadership will be the theme of this year’s Great Place to Work For All Summit, scheduled for March 3-5, 2020, in San Francisco, which will host nearly 2,000 CEOs, CHROs, and other top executives who are committed to creating a great place to work for all. The three-day event will also include a closed-door session to discuss diversity and inclusion. For more about the Summit, or to download the Future of Work and the Hidden Pieces of the D&I Puzzle reports, visit greatplacetowork.com.
We look forward to seeing you at the Summit.


fortune--2020-02-18--Nanotronics CEO: Small, smart factories will revolutionize manufacturing

Nanotronics could have chosen many traditional locations to construct its new high-tech manufacturing center. Instead, it invested $11 million to rejuvenate a portion of the historic 150-year-old Navy Yard sited in a low-income neighborhood in Brooklyn, New York. There, the technology company forged an internship program with Medgar Evers College, and with local high schools, to strengthen the diversity and creativity of its workforce.
“I think that there is a philosophical misunderstanding of what it means to work in science and technology,” Nanotronics CEO and co-founder Matthew Putman tells FORTUNE senior special correspondent Susie Gharib. “It’s incredibly creative, exciting, and does not require the MIT degree. And so we see with—whether it’s interns from [these] places or whether it’s new employees—you see really a huge amount of our applicants are coming from word of mouth that this is as exciting as working at any other place, and you should not be intimidated.”
Nanotronics, which also has a presence in Ohio and California, uses artificial intelligence, robotics, and advanced imagingto reduce waste in manufacturing processes and to create smaller factories where computer scientists, chemists, and physicists can collaborate closely with skilled tradespeople on research and development. Its FORTUNE 500 customers are working on projects in genomics, semiconductors, medicine, and aerospace.
Small, nimble laboratory-factories can have an enormous positive impact by accelerating the time it takes to get a product to market, promoting a cleaner environment, and providing better access to employment in underserved communities, says Putman. “I’ve learned that I don’t have to deal directly with every small issue to make the planet a better place if it’s at the core of who we are as a company.”
Watch the full video for more about Nanotronics’ mission to revolutionize how things are built.
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fortune--2020-02-18--How to fix the broken corporate approach to addressing sexual harassment

In 2018, a PricewaterhouseCoopers report found that more CEOs were removed for unethical behavior, including harassment, than for poor financial performance. It’s largely a testament to the momentum of the #MeToo movement and the brave individuals who continue to come forward that keeps CEOs, politicians, and media titans accused of sexual harassment in the public eye.
But, in addition to addressing these individual acts, government regulators, business leaders, and the broader public should also scrutinize the corporate structures that continue to enable this behavior.
Companies have many tools to limit their legal liability, from ironclad nondisclosure agreements (NDAs) to check-the-box sexual harassment training. And while companies may believe that these tools are helpful, every dollar spent on legal protections could instead be spent on evidence-based approaches to reducing harassment itself, rather than simply reducing the responsibility for it.
In the long run, the current approach hurts companies’ bottom lines. A 2007 study found that companies can lose thousands of dollars in lost productivity when their employees are harassed. And another study from 2019 found that high rates of sexual harassment negatively impact a company’s value. Corporate America is sacrificing both employees’ welfare and its own wellbeing for short-term protections.
State governments are beginning to intervene. For example, in 2018, 16 states introduced bills to limit harassment-related NDAs. Yet NDAs are still prevalent: Over one-third of employees in the U.S. were restricted by an NDA in 2018, according to a study cited in Harvard Business Review. In sexual harassment cases, those who sign NDAs can never expose their harassers, and because problems with the company culture and other root causes are never addressed, harassers can continue to prey on others.
Traditional sexual harassment training won’t lead to deep cultural changes either, even though it’s one of the primary tools companies use to address harassment. In 2019, 20% of workers in the U.S. were mandated by their state to receive training. And regardless of whether their state mandates training, Harvard sociologist Frank Dobbin told Vox that “[o]ver 90 percent of large U.S. employers” opt for sexual harassment training. And it’s largely to reduce their legal liability: Companies that offer such training are often looked on favorably by the courts for the perceived attempt to prevent harassment.
Given how ubiquitous training is, as well as its legal importance, state governments, the legal community, and corporate leaders should take a hard look at training’s effectiveness; otherwise, they’re wasting valuable resources.
While training is prevalent, traditional training is largely ineffective at reducing harassment (for starters, it can exacerbate gender stereotypes). It can also produce a backlash among those mandated to partake in such sessions. For example, a 2001 report studied the effect of sexual harassment training on 90 college men who participated in one-hour training sessions. It found that the men who had a “high proclivity to harass” were more likely to view sexual harassment as more, rather than less, acceptable after the training.
In 2018, a survey commissioned by nonprofit Stop Street Harassment found that out of 2000 people polled, 38% of women and 13% of men have experienced sexual harassment in their workplace. And a 2006 study estimated that as much as 90% of incidents go unreported.
Given how prevalent harassment is, and how ineffective current training is, what should leaders do? Start with demonstrating that preventing harassment is a real priority. For instance, in the military, which struggles with harassment and assault, a 2014 study found that in units where the commander was perceived to be committed to preventing harassment by conveying a “clear and consistent anti-harassment message,” less harassment was reported in a one-year period. Soldiers, like employees, are perceptive—when they know what their leaders’ actual priorities are, they adjust their behavior accordingly.
While demonstrating that preventing harassment is important is a great first step, CEOs, managers, and founders should go further and treat this like any other business priority: set goals, measure progress, and investigate whether initiatives are working. Given the prevalence of harassment training, revamping prevention training is an obvious place for leaders to start. While current training is ineffective at best, it doesn’t have to be. Training hasn’t been updated in decades and employees are largely aware that watching a dated video yearly isn’t about culture change, it’s about compliance.
Leaders can change that mindset by making training about learning and behavior change—not just compliance. One helpful resource is the U.S. Equal Employment Opportunity Commission’s 2016 Select Task Force report, which includes tactical recommendations for effective training: training should be tailored to the audience, meaning reflect an employee’s workplace and common scenarios, versus a one-size-fits-all approach; conducted frequently; and it should employ creative approaches that capture attention.
Despite the radically different way in which people consume content, sexual harassment training is still frequently delivered via hour long videos—much as it was in the 1990s. Delivering content via modern communication tools, and in more digestible doses, would more closely mirror how employees get other information and content. Investing in modern, creative approaches will signal to employees that preventing harassment is a genuine priority and would convey information more effectively.
Leaders should also be aware of the specific types of NDAs their companies use, instead of outsourcing those details entirely to legal teams. When founders are building out their hiring practices, even at the early stages of their companies, they should understand what NDAs are in their employment contracts, and consider the impacts on their colleagues, should those NDAs be applied to sexual harassment cases. Investors should also be asking these questions to their portfolio companies. Similarly, leaders of more mature companies have a real platform: They can publicly denounce the use of NDAs in sexual harassment cases to set new standards when it comes to what is considered common practice in dealing with sexual harassment.
Victims of sexual harassment are bravely sharing their stories and advocating for safer workplaces. States are beginning to address the seismic shift with new regulations, but it’s imperative that companies do their part by taking a critical look at the tools they use to address harassment. Replacing ineffective approaches and thinking beyond just compliance and liability can make real change in a company’s workplace culture. While business leaders ought to be intrinsically motivated to build an inclusive culture, overhauling their sexual harassment policies may also save them their jobs.
Gretchen Carlson is a journalist and co-founder of Lift Our Voices.
Roxanne Petraeus is CEO of Ethena.
More opinion in Fortune:
—Robot surgery could be the future of health care in remote areas
—Why some Republican governors went against the Trump administration’s stance on refugees
—Why insurers should cover mental health care to lower costs
—Betsy DeVos is letting for-profit colleges trap students in debt they can never repay
—WATCH: The double burdens that hold women back
Listen to our audio briefing, Fortune 500 Daily


fortune--2020-02-18--The coronavirus picture gets clearer with updated infection, death numbers

Hi, Erika Fry filling in for Sy Mukherjee today.
The threat of an impending global pandemic didn’t go away over America’s long weekend. The novel coronavirus outbreak that began late last year in Wuhan, China continued apace with confirmed cases standing at more than 72,000 and deaths nearing 1,900—most of them in China’s Hubei province. Health care workers have been among the most vulnerable; a hospital director in Hubei was among the dead today.
Though many have questioned the effectiveness of such measures, China has redoubled its effort to contain the virus via mass quarantine and travel bans: the New York Times today reported the country has placed 150 million people under lockdown and that half of the nation’s 1.3 billion people face restrictions on movement.
Meanwhile, the virus is now spreading through communities outside the outbreak’s epicenter; in Singapore and Japan, both of which have tallied dozens of COVID-19 cases, leaders have signaled that containment efforts like contract tracing and quarantining may not be manageable.
Further afield, French Health Minister Olivier Véran declared that COVID-19 becoming a pandemic is both “a working assumption and a credible risk,” and UN Secretary General António Guterres, calling it “a very dangerous situation,” flagged concerns about how countries with weak health systems will fare if that happens.
While uncertainty abounds, we do have a slightly clearer picture of the virus and its toll thanks to a recent analysis released by China’s CDC. The report, which looked at 44,672 confirmed cases reported before February 11, found the vast majority—80.9%—were mild. 13.8% were severe and 4.7% critical. While noting the study had various limitations, its authors reported a case fatality rate of 2.3%.
All of this signals more economic fallout ahead. South Korea’s President Moon Jae-in today called the situation an economic “emergency.” Closer to home, Apple said yesterday it would miss its first quarter revenue targets. An analyst told me last week he expects the total cost of this outbreak to be $90-270 billion.
A more precise accounting of the impacts—human and economic—will only come with time. For now, as I wrote recently for the magazine, when it comes to this outbreak and what to expect, even the world’s leading experts simply don’t know.
Erika Fry
erika.fry@fortune.com
@ErikaFry
DIGITAL HEALTH
Tech giants, WHO meet to discuss coronavirus misinformation. CNBC reports that tech giants Facebook, Google, and Amazon met with World Health Organization (WHO) officials recently in order to broach an awkward topic: How the companies' various social media and content distribution platforms may be feeding misinformation about the coronavirus. (Representatives from Twitter, YouTube, and Salesforce, among others, were also reportedly present.) A combination of actual fake news about the virus from trolls and money-grubbing ploys that seek to exploit fears over the outbreak spurred the meeting. (CNBC)
Social fitness network Strava finds people don't really run because they love doing it. The fitness tracking and social media platform Strava is out with a new survey that appears to confirm what many may have already suspected—people who run don't tend to do it for the love of the run. They do it in order to improve self-confidence and address body image issues, and to tackle health issues such as heart problems or mental health. In fact, only 8% of the 25,000 surveyed runners said they "love" to run. By contrast, about half said they either hate running or can barely stomach doing it. (Reuters)
INDICATIONS
Sanofi to work with HHS on coronavirus vaccine. French drug giant Sanofi announced Tuesday that it's working with the Department of Health and Human Services' Biomedical Advanced Research and Development Authority (BARDA) to work on a coronavirus vaccine. That brings the number of companies developing either vaccines or antiviral therapies meant to tackle the disease up to more than a dozen (others include Johnson & Johnson, Gilead, and a slew of other firms). (Reuters)
The FDA is keeping a close watch on medical supply chain disruptions. The Food and Drug Administration released a formal statement saying that the agency is aware that the coronavirus outbreak "will likely impact the medical product supply chain, including potential disruptions to supply or shortages of critical medical products." We've already seen plenty of real-world evidence for this. Just last week, British drug giant AstraZeneca specifically cited coronavirus for uncertainty in its 2020 financial outlook; European regulators are also bracing for drug shortages related to the virus, which has disrupted supply chains across multiple industries. China is both one of the biggest consumers and manufacturers of medicines in the world. (FDA)
THE BIG PICTURE
The best companies to work for in health care. Fortune is out with its latest 100 Best Companies to Work For list—and, wouldn't you know it, a number of health care firms made the cut. Texas Health Resources, BayCare Health System, Baptist Health South Florida, AbbVie, Genentech, and others were all included on this year's list for a combination of factors including employee diversity, benefits, workplace culture, and leadership training, among others. Check out the whole thing here. (Fortune)
REQUIRED READING
Can San Francisco be saved? by Adam Lashinsky
Why it's so hard for China's factories to get back to work, by Eamon Barrett
20 maps charting the rise of the modern megacity, by Nicolas Rapp & Brian O'Keefe
Oracle and Google are about to face off in tech's trial of the century, by Jeff John Roberts
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fortune--2020-02-18--$13 box of health-conscious cereal could be key to General Mills’ growth

General Mills is hoping that a $13 price tag on its latest health-conscious breakfast food doesn’t turn out to be a cereal killer.
The company, speaking at Tuesday’s Consumer Analyst Group of New York (CAGNY) conference, pointed at ways it hopes to revitalize the struggling cereal category, including its recently launched Morning Summit cereal, which carries a significantly higher price tag than Froot Loops or Total.
“We’re innovating in new product forms that command premium price points, including our new Morning Summit product, which has almonds as the first ingredient and sells for $13 a box,” said Jeff Harmening, chairman and CEO of General Mills.
The health-focused cereal blends cereal flakes with almonds and dried fruit, and contains 15 grams of whole grain per serving (nearly one-third of the daily recommended allowance). For comparison, a box of Multi Grain Cheerios sells for about $3.50, while Lucky Charms sells for around $3 per box.
Harmening said that cereal sales, an $8 billion market, are showing some signs of rebound. While they were flat in 2019, that’s an improvement over the low single-digit declines of a few years ago, he said.
At General Mills, new products are bringing growth, including 2 oz. cereal cups, which are being distributed in schools and convenience stores, and partnerships with Nestle. The company also raised prices last year.
“Our strategy to drive compelling cereal growth is centered on launching compelling innovation that offers taste, convenience, and health benefits, while investing in brand building that engages consumers and gives them a reason to walk down the aisle,” he said.
The up and coming star at General Mills, though, might have nothing to do with breakfast (or yogurt, or tacos, two of its other big categories). Natural pet foods, like Blue, are poised for substantial growth, said Harmening.
The company saw a $1 billion increase in sales last year and household penetration has nearly doubled over the past two years.
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fortune--2020-02-18--Why Fortune’s 100 Best Companies to Work For are beating out the competition

This morning, Fortune published its 2020 ranking of the 100 Best Companies to Work For, with the top slots going to Hilton, Ultimate Software, Wegmans Food Markets, Cisco, and Workday. The top ranked firms are often the bar-setters for employee benefits and perks and more recently setting business standards for inclusion.
But what are the 100 Best Companies to Work For doing right? Why should you want to work there? And what should your business consider emulating? Fortune ran the numbers for our most valued readers to answer just that.
Numbers you should know:
$1.15 trillion
… the total combined worldwide revenue of these 100 firms. That’s just shy of the $1.2 trillion gross domestic product of Mexico.
34%
… the average percentage of these 100 companies workforces that are minorities. And 16% firms on the ranking have workforces where minority racial groups make up more than half of its employees.
44%
… companies on the ranking offer on-site medical care. That includes No. 6 ranked Salesforce. While 12 out of 100 companies pay 100% of health care benefits for full-time employees.
3,000
… the number of cultural events that Bank of America held for the purpose of helping employees learn about and connect with peers from different racial/ethnic, religious or country-of-origin identities other than their own.
$30,000
… the maximum amount NVIDIA, a tech firm based in California, provides to employees to pay down their student loan debt. A total of 15 out of 100 firms offer this perk.
48%
… the average percentage of these 100 companies’ workforces that are women. And 37% of ranked firms have a workforce that are majority women, with the highest being at Bright Horizons Family Solutions (94%) and Encompass Health Home Health & Hospice (85%).
Four deeper takeaways:
1. Employer tuition reimbursement is par for the course these days
Employees at No. 21 ranked Plante Moran can receive up to $10,000 in tuition reimbursement. The Michigan-based accounting firm has one of the most generous plans among companies on our ranking.
Firms like Plante Moran see tuition reimbursement as a great perk to both attract young professionals and grow their skills that they’ll use on the job. Just over 80% of firms offer more than $1,000 in tuition reimbursement, while 56% offer $5,000 or more.
2. Health Care and Education firms have the most female employees
The fact that firms with the most women in its workforce skews towards health care and education isn’t a huge surprise, as women have held the majority of registered nurses and teaching jobs for decades. But it’s worth noting that 12 financial services or insurance firms on the list have a majority female workforce. That includes companies like First American Financial Corp. (68%), Edward Jones (61%), and Capital One Financial (53%).
3. Telecommuting is the norm
The spread of high-speed internet and savings on commercial space, make having a telecommuting option a no-brainer for many firms. But where the top ranked firms really standout is by offering things that keep money in the pockets of employees, like subsidized on-site or off-site gyms (78%), subsidized child care (42%), and 100% paid health care cost (12%). And to help with the 9-to-5, companies like No. 77 ranked Bank of America even offer fully-paid sabbaticals.
4. Finance and insurance firms dominate the ranking
Financial service and insurance firms are notorious for paying well and offering top-notch employee benefits. That helps to explain why so many made the ranking. The highest being No. 7 ranked Edward Jones, a Missouri-based investment firm.
One more interesting number:
37%
… the year-over-year increase in full-time or part-time positions at No. 78 ranked Total Quality Logistics. The Ohio-based freight brokerage has the highest job growth rate among companies on our ranking.
*Methodology: Fortune partners each year with people analytics firm Great Place to Work to determine the Fortune 100 Best Companies to Work For list. We conduct America’s largest ongoing annual workforce study, representing more than 4.1 million employees this year. To be considered, companies submit an application documenting over 200 data points describing their HR programs and practices. Great Place to Work then conducts an anonymous survey of each company’s workforce.