Fortune USA september 15 2016

Clinton’s business backers like to look back to the first Clinton administration, and hope for a restoration.. Ben-Hur Budget: $100 million Opening weekend: $11.2 million Ghostbusters Bud

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women Fortune 500 CEOs remains

tiny Many female C-suite starsdon’t get second opportunities,ending up in an invisible corporatepurgatory Why is business still un-derutilizing one of its most valuableassets? B y jennif er reingol d110

ann-marie campbell believes in you

As Home Depot looks to the web tohelp it squeeze more sales out ofits stores, the 400,000 associateswho work in the retailer’s 2,276locations look to one of their own tolead them B y el l en mc gir t

116 lighting up geVice chair Beth Comstock has anungainly portfolio but a simplemission: infusing the future into avenerable company B y Ge of f C olv in

120 more than skin deepUlta Beauty has built a fast-growing hair and cosmetics empire

in America’s strip malls Can it gotoe-to-toe with much bigger com-petitors? That’s up to CEOMary Dillon b y phil wa hb a128

the smart sting

of sam BeeThe Canadian comedian hasreplaced Jon Stewart as America’smost trenchant political commen-tator Her secret? Not hiding her

frustration B y erin grif f i t h

132 google gets disciplinedThe search-engine behemoth hasspent billions in the quest for itsnext hit Now Wall Street veteranRuth Porat has come aboard to helpGoogle—and its parent company,Alphabet—get more bang for thebuck Can she get their “smartcreatives” to fall in line? B y l een a r a o141

most powerful women: internationalOur rankings of the most power-ful businesswomen based outsidethe U.S b y rupa l i a ror a , erik a f r y,

a u d r e y s h i , a n d c l a i r e z i l l m a n

144 leading through chaosTurkey’s aborted coup is only the lat-est challenge for Güler Sabanci, thewoman behind one of the country’slargest conglomerates B y erik a f r y

82

introduction

Fortune’s 19th annual

compen-dium of the Most Powerful Women

in Business reveals how female

executives are transforming

corporate America

84

hail , mary

General Motors CEO Mary Barra has

led the carmaker on an epic

come-back ride But it might take more

than a miracle worker to lift the

company’s stock B y Pa ul Ingr a s si a

Plus: Barra talks with Fortune

editor-at-large jennif er reingol d

about what has changed at GM—

and what’s next

6 F OR T UNE C OM September 15, 2016

174

it’sjeffrey katzenberg’s future

His career as a studiomogul just ended withthe sale of DreamWorksAnimation But Katzen-berg has shaped some

of the most importantchanges in the movieindustry over the pasttwo decades—and he’snot done yet

B y m i c h a l l e v - r a m

160

Swimming upstream

Can a Bible-studying,love-peddlingshowman saveSeaWorld … fromitself?

B y E r i k a f r y

158

30years offastest- growing companies

As our list reachesthe three-decademilestone, we highlightsome of the highs …and lows along the way

151

Fortune’s 100fastest- growing companies

Too fast to be stopped:

2016’s top three-yearperformers in revenue,profits, and stockreturns

To win the nomination,

Clinton tacked way left

on trade and ratcheted

up her anti–Wall Street

rhetoric But insiders

and experts say

her policies are

8 F OR T UNE C OM September 15, 2016

D E PA RT M E N T S

5949

16

10EDI T OR ’S DE SK

188BING!

C ORREC T IONS

Fortune’s Change the

World list (Sept 1,2016) incorrectlystated that Brazilianforestry companyFibria operates in theAmazon In the samearticle, the companyAdvisorShares is incor-rectly identified asAdvisory Shares

Please see Editor’sDesk for an additionalcorrection/clarification

The rise of nationalism

and protectionism has

villainized free trade,

but the global economic

future hinges on its

Big Pharma has been

hiking prices with

impunity for years

Come November, that

could change

B y s y m u k h e r j e e

18

Trend Tracking

Our educated guesses

for which crazes are

fizzling and which are

picking up steam

20

Sequel-itis

Why does Hollywood

make bad movies?

People keep paying to

see enough of them

B y m i c h a l l e v - r a m

22

Fair Trade

China’s currency falls

The world shrugs

B y S c o t t c e n d r o w s k i24

Executive Read

Two new books ongender in the workplace

can help women and

men become better leagues and managers

col-26

Chartist

The share of womenCEOs is still minuscule,but in the boardroomthere’s increasing causefor optimism

Venture

35

How I Got Started

Kenneth Cole foundedhis own shoe com-pany—then learnedhow to sell in the mostmodern of ways

i n t e r v i e w B y d i n a h e n g38

Great Workplaces

Ad agency Dixon Schwabloffers both formal andinformal educationinside an employee-centric company

B y s t a c y p e r m a n44

Dinner at Your Doorstep

Blue Apron is sellingmore than justmeal kits It’s trying

to inspire a new eration of foodies

of Airbnb

B y l e i g h g a l l a g h e r51

The Future Is Now

As techies dream ofdelivery drones, the con-struction industry eyesthe devices as a tool tosave billions of dollars

B y c l a y d i l l o w

54

A Boom With a View

Young tech companiesare supposed to “failfast,” but founders justcan’t let go

B y r y a n d e r o u s s e a u

63E X EC U T I V E

T R AV ELTrends in air travel:

what you need to know

72T HE BIG T HINKHow to get on the rightside of the digital divide

That’s why we took space inour May 1 issue to exploreDonald Trump’s rocky record

in business And that’s why,

in this issue, we are exploringHillary Clinton’s compli-cated—and still unsettled—

relationship with corporate America (see page 74)

Neither candidate gets high marks for

pro-business policies—an inescapable symptom of the

times Bashing Wall Street, denouncing drug

pric-ing, and generally favoring the “people” over

busi-ness and government “elites” is the essential pose of

today’s populist politics Trump’s tax and regulatory

proposals may sound appealing to many, but his

attacks on immigration and trade are anathema

to anyone building a global business Clinton’s

his-tory as an internationalist offers an alternative but

comes packaged with activist instincts Both

candi-dates carry personal baggage that makes

support-ers wary Among business leadsupport-ers, the impulse to

choose “none of the above” has never been higher

Clinton’s business backers like to look back to

the first Clinton administration, and hope for a

restoration President Bill Clinton decided early in

his tenure to side with business-friendly moderates

on his team, like Bob Rubin and Larry Summers,

rather than the firebrand populists He pursued a

balanced budget, championed the North American

Free Trade Agreement, and, after being trounced

by Republicans in the midterm elections, went even

further to secure welfare reform At least partly

fueled by such policies, growth during his term

averaged 3.8% a year and created 21 million jobs

This is a different era,however, and Hillary Clinton

is a different person It’s notclear who among her advis-ers could or would play theRubin role, or whether herparty would allow her to gothere She may privately favorthe trade agreements she nowpublicly opposes (as many

of her business supportersassume), but reversing courseafter the election could be po-litically suicidal Campaignshave consequences

But here’s our greatest cern about election 2016: thatit’s become such a nasty race

con-to the botcon-tom that neithercandidate can emerge withthe public or political supportneeded to govern effectively

There are things ment needs to do—rebuildcrumbing infrastructure,reform a broken corporatetax structure, shore up publiceducation and training, andperhaps most of all, rebuildtrust in the institutions, pub-lic and private, necessary for

govern-a thriving society Good luckwith that

In the meantime, we at

Fortune are betting on the

private sector to help solvesome of society’s most press-ing problems That’s why,

in December, we’re

assem-bling roughly 100 Fortune

Global 500 CEOs at theVatican to talk about forging

“a new social compact.” Afterthis year’s troubled election,

it all may be on them

CORRECTION AND CLARIFICATION

In “Can Tech’s TattleTycoon Trump Thiel?”(Sept 1, 2016) we er-roneously stated thatGawker “began moving

to protect its assets”

in 2013 and “paid outmost of the profitsfrom its Hungariansubsidiary in a massivedividend to sharehold-ers.” That statementwas made on the basis

of publicly available nancial documents thatshowed a $4.6 milliondividend Documentslater provided by Gawker,however, showed thatthe dividend entry wasmade in error and sub-sequently corrected to

fi-$1.26 million Becausethe remaining sum is notunusual in the context

of the company’s annualfinances, the paragraph

in question, which statedthat Gawker “emptiedits piggy bank wellbefore a judge ruled infavor of Hogan,” hasbeen removed from theonline version of thestory (That correction,unfortunately, cametoo late for the printedition.) Additionally,we’ve added a statement

to the online story from

a Gawker spokesmanwho takes issue withour characterization

of finances connectedwith the holding com-pany Greenmount Creek,which is controlled bythe Denton family trust

Fortune said that it was

“a bit of a mystery” whothe recipients of oneunsecured note that will

be worth $12.8 millionwere The spokesmandisputes that there

is any “mystery” rounding that note orGreenmount Creek andsays the recipients arethe children of RebeccaDenton, to whom Gawkershares were transferred

sur-at the time the trust wascreated in 2010

WESLE Y MANN

BY CHRIS MATTHEWS

The tide that

sinks all boats

C L O S E R L O OK

F OR T UNE C OM 13

An overhead view of Cali- fornia’s Port of Long Beach, which handles

$180 billion in goods a year, primarily trade from Asia.

support, and as President Barack Obama

readies a long-shot push to get the free-trade

deal through Congress this fall, he may be

virtually the last elected official in

Washing-ton who hasn’t given it up for dead

Hillary Clinton—who once lauded the deal as

the “gold standard” of trade agreements—has spent

months trying to convincenervous progressives thatshe has no intention of sup-porting the 14-nation pactonce she gets in office (Formore, see our cover story

on Clinton.) And DonaldTrump—the nominee of a

Republican Party whosesupport of free trade wasonce more reliable thanclockwork—has beencalling the pact “a rape ofour country.”

The agreement’s bund condition is a far cry

mori-P H O T O G R A mori-P H B YJEFFERY MILS TEIN

FREE TRADE’S LANDMARK DEALS

These are the three agreements that have done the most to shape global

trade in the postwar era.

(1947–94)

What it did:

Twenty-three of the world’s most powerful nations signed the GATT treaty, creating the International Trade Organization Over the decades the deal was opened

to more nations, eventually creating today’s World Trade Organization.

to the U.S.’s famous

1993 deal with Mexico and Canada.

The U.S has kept up the practice, signing bilateral agreements with countries like Panama and Australia.

14 F OR T UNE C OM September 15, 2016

from where it was just last

year, when it seemed that

passing the TPP was the only

thing Obama and

congres-sional Republicans could

agree on Then Washington

was rocked by the populist

campaigns of Bernie Sanders

and Donald Trump, which

brought with them 20 years

of pent-up anger over

sag-ging wages, rising income

inequality, and suspicions of

corporate political cronyism

The debates’ toxicity has

most members of Congress

hoping the issue will just go

away, lest they be labeled

traitors to the American

worker The problem with

this interpretation of trade

deals, however, is that there

isn’t much evidence that

it’s accurate “Free-trade

agreements have become a

scapegoat for a lot of other

forces changing the

econ-omy,” says Cathleen

Cimino-700,000 jobs over 20 years

That sounds damninglyhigh, but it adds up to just35,000 jobs per year, or

a seventh of the number

of jobs the U.S economy

has gained on average per month this year Even ifthese job-loss estimates are

to be believed, the increasedeconomic growth and tradeflows that resulted fromthe deal mean that NAFTAlikely counts as a net benefitfor the American economy

To be sure, the U.S.’snearly century-long marchtoward freer trade hascreated losers as well aswinners In the six yearsfollowing China’s 2001 ac-cession to the World TradeOrganization, the U.S lost

6 million manufacturingjobs A recent study arguedthat the precipitous dropwas due in part to the U.S.’sagreement to make lowertariffs—which it had beentemporarily approving on

an annual basis—permanent

as a result of China’s newWTO-membership status

But it’s impossible to say

how long those jobs wouldhave lasted had the tariffsremained, and whetherChina would have retaliated

by closing off its marketshad the U.S resisted itsWTO membership

Most Americans nize that protectionism is alosing hand, as evidenced by

recog-a recent Grecog-allup poll showingthat 58% of the nation seesforeign trade as an oppor-tunity rather than a threat.It’s a vocal minority that isgumming up the works, just

as it did 20 years ago whenBill Clinton fought to passNAFTA The deal eventuallypassed after he returned toCongress with fresh con-cessions from Mexico andCanada—a scenario manystill hope could play out in asecond Clinton administra-tion with TPP

But the political will foropenness has never seemed

so weak, despite the math

“We are 5% of the world’spopulation,” Clinton herselfargued earlier this year “Wehave to trade with the other95%.” A Washington that isserious about stimulatinggrowth at home and abroadwill not stay away from thefree-trade negotiating tablefor long

Isaacs, a research fellow atthe Peterson Institute forInternational Economics

Indeed, when oneponders the changes thatthe global economy hashad to digest over the past

25 years, from the fall of theIron Curtain to the flower-ing of the Internet-basedeconomy to the entrance

of 1.3 billion Chinese intothe labor force, it would

be surprising if the effects

weren’t felt by Americanworkers The governmentwasn’t responsible for most

of these changes, of course,but votes on free-tradeagreements are an easytarget for blame

The harshest criticisms

of free trade, though, seemoverblown once scrutinized

Sanders likes to cite a tistic from the labor-backedEconomic Policy Institutethat NAFTA cost the U.S

sta-Mexican PresidentEnrique Peña Nieto met withDonald Trump, who has advocated tearing up the countries’trade agreements.

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16 F OR T UNE C OM September 15, 2016

M E G A P H O N E S

WHY BIG BUSINESS LOVES PODCASTING

ON NOV 8,most eyes will be

on the historic presidential

contest between Hillary

Clinton and Donald Trump

But the pharmaceutical

industry will be focusing on

another vote: Proposition 61,

a California public

refer-endum that could become

the first initiative to draw

blood from drugmakers,

which have largely refused to

change their pricing habits

in the face of an intensifying

political wildfire

T H E P E O P L E V S T H E P I L L P U S H E R S

PHARMA DOESN’T CARE

ABOUT YOUR OUTRAGE

WE’RE WELL INTO THE ERAof the mainstream podcast, the digitalaudio format steered into cultural prominence by massively popular

series like Serial and Radiolab (You know a format has reached peak

mainstream when Hillary Clinton has one.) In the past few years,podcasts’ expanding audiences—Edison Research estimates thatroughly 57 million Americans download a podcast every month—haveturned the platform into an obvious destination for Big Business

Here’s a look at some of the companies using podcasts for brandbuilding.—TOM HUDDLESTON JR.

While a few companieshave been forced to offerlower-priced medications

as media backlash hitstheir share prices—Mylandiscounted its EpiPen inAugust after harsh rebukesover its soaring cost—morethan two-thirds of the 20largest drug companies usedprice hikes to boost revenues

in 2016, according to a Wall Street Journalanalysis offirst-quarter earnings

The public’s hands are

largely tied, and federal tion on drug prices is unlikelyduring an election year ButCalifornia’s measure, whichwould cap how much statehealth programs pay fortreatments at the deeply dis-counted level paid by the De-partment of Veterans Affairs,could open the floodgates inmore states if it passes

ac-So far, Prop 61 is pollingwell, despite some worries

it could backfire and leadcompanies to charge the VAmore Big Pharma appears

to be taking note: AbbVie,Pfizer, AstraZeneca, andothers have already pouredmore than $70 million intodefeating the initiative—byfar the most money beingspent on any Californiareferendum this year Forthe first time in a while, therising costs go both ways

THE INDUSTRY HAS BEEN HIKING PRICES WITH

IMPUNITY FOR YEARS COME NOVEMBER, THOUGH,

THAT COULD CHANGE. BY SY MUKHERJEE

After Mylan acquired the EpiPen, the price of the lifesaving drug rose 400%.

Goldman Sachs

Goldman’s in-house podcast showcases its market know-how

by interviewing a coterie of Goldman analysts on topics like e-commerce (episode title “Brick and Mortal”) and new research (“Mutant Mosquitos”).

eBay

The auction giant partnered with Gimlet Creative for

a six-part series on

startups called Open

for Business The

branded podcast also plugs eBay, naturally,

as “one of the first platforms for would-

be entrepreneurs.”

General Electric

GE sponsored a sci-fi narrative podcast

on the Slate Group’s Panoply Media about cryptologists decoding a decades-old alien transmission (partially inspired by GE’s work on sound- based medical tech).

Netflix

The streaming service sponsored a one-off episode (also

on Panoply) with the creators of Netflix’s hit true-crime

docuseries Making

a Murderer talking

about the huge public response to the show.

Andreessen Horowitz

Cofounders Marc Andreessen (left) and Ben

Horowitz are occasional guests on a16z, the

podcast produced by the powerhouse Silicon

Valley VC firm that has backed startups like

Instagram and Skype Discussions cover topics

ranging from emoji to Pokémon Go.

PLATEAU OFPRODUCTIVITY

TROUGHOFDISILLUSIONMENT

T

SLOPE OFENLIGHTENMENT

MACRO

PEAKOFINFLATEDEXPECTATIONS

But half of diners who sign up quit overthe cost, NPD says A meal kit shakeoutcould be coming

3D PRINTING

Industry stocks have come waydown from their 2013 peaks, as theconcept has lost some of its sheen

But commercial 3D printing ues to grow, even if there’s not anaction-figure molder in every home

contin-ONLINE DATING

Yes, they’re uitous, but datingservices’ growthhas dwindled frommore than 10%

ubiq-annually a decadeago to more like 4%

today, according toIBISWorld And thefield is already highlyconsolidated

POKÉMON

The biggest mobilegame ever had

45 million activedaily users at itspeak but slid to

30 million lessthan a month afterlaunch Meanwhile,shares of Nintendo(which owns thecritters’ licensingrights) soared 120%

initially before ing back to earth

com-ATHLEISURE

It’s easy to think the

athleisure craze will

go on and on The

$44 billion

active-wear segment grew

16% last year, NPD

Group says But

there are signs this

is peak yoga pant:

Less hip retailers

like Kohl’s and even

Walmart are piling

onto the trend

FRO-YO

In 2013 it was aMain Street staplewith 27% annualgrowth Last yearthe $2 billionfrozen-yogurtindustry notched amuch smaller 3.9%

increase, ing to IBISWorld,and there’s chainconsolidation onthe horizon Woeunto the fro-yofranchisee

accord-NEW YORK TECH SCENE

Every city has itsSilicon Valley dreams,but New York arguablyflew the highest andcrashed the hardestwith Gilt, Fab, andQuirky all failing tomake a dent It isgradually reestablish-ing itself, though, withbuzzy firms like Bet-terment and Casper

S O L O N G , C H A R I Z A R D

TREND

TRACKING

THE GARTNER HYPE CYCLEhas become

a shorthand in the tech world to describetechnologies’ path to adoption Every year theresearch firm places products and ideas likemachine learning (Gartner says it’s at peakhype) on the familiar Silicon Valley rollercoaster: First come breathless reports andinflated expectations, which are followed by

a trough of sorrow, when reality sets in, andthe slope of enlightenment, where the kinks

OUR EDUCATED GUESSES

FOR WHICH CRAZES ARE

FIZZLING AND WHICH ARE

PICKING UP STEAM.

are worked out Finally there’s the more stableplateau of productivity, where an idea at lastmakes reliable money

While the firm’s eponymous cycle dealswith plenty of heady intellectual concepts,

we thought there were a few other ideas thatcould be measured the same way Here, withapologies to Gartner, we’ve adapted its chartfor trends a little further afield.—JOHN KELL, POLINA MARINOVA, PHIL WAHBA, AND ANNE VANDERMEY

20 F OR T UNE C OM

6.5 1996 7.0 7.5

8 MILLION

MULTIPLE JOB HOLDERS

IN THE U.S.

2006 2016

7.4

4 5 6

7%

MULTIPLE JOB HOLDERS AS A SHARE OF ALL EMPLOYED

on the industry and a bit of

a letdown for moviegoers,”

says Paul Dergarabedian,

a senior media analyst atComScore “But the cumula-tive box-office numbers areactually strong.”

Hollywood has a ger problem than just thissummer, though Tinsel-town’s growing reliance onfranchises is no foolproofstrategy, and higher ticketprices mask the larger prob-lem of shrinking audiences

big-As long as studios are able

to show profit growth, ever, it’s unlikely they willchange their ways

how-AN EPIC REMAKE?More like

an epic fail In mid-August,

Ben-Hur, yet another

ad-aptation of the novel about

a chariot racer in biblicaltimes, became Hollywood’slatest big-budget bomb Thefilm, which cost $100 mil-lion, eked out a paltry

$11.2 million during itsopening weekend—a horribleharbinger for overall sales

Paramount’s colossal flopwas no outlier This summerHollywood has churned out

a stream of easy-to-ignore

remakes and sequels like The Legend of Tarzan, Indepen- dence Day: Resurgence, and Ghostbusters Yet despite

these disappointments,overall ticket sales have beenabout on par with last sum-mer’s $4.48 billion

The explanation? Enough

PEOPLE KEEP PAYING TO

SEE ENOUGH OF THEM.

BY MICHAL LEV-RAM

IN THE ERA of Uber, Lyft, Postmates, and TaskRabbit, tens of millions of us, particularly millennials, were supposed

to be living in a gig economy

by now How’s that working out? Depends on which numbers you look at.

The number of people who say they hold multiple jobs has declined as a share of total workers over the past decade.

That seems to belie the ascendance of gig work But not all freelancers consider their side hustles additional jobs, Harvard’s Lawrence Katz and Princeton’s Alan Krueger have pointed out, making gig economy work somewhat inscrutable Some clarification may

be on the way: This summer the Commerce Department proposed a new definition for “digital matching firms,” including Uber, Etsy, eBay, and more The first step toward understanding the new work world will be finding out how different

it really is from the old one.

— ANNE VANDERMEY

NO T E S : BL S D ATA IS F OR W ORK E RS

1 6 Y E A RS A ND OL DE R A NNU A L VA L UE S

E XC E P T F OR T HE MON T H OF JULY 2 0 1 6 (SE A S ON A L LY A D JUS T E D).

Ben-Hur

Budget: $100 million Opening weekend: $11.2 million

Ghostbusters

Budget: $144 million Opening weekend: $46 million

the legend of tarzan

Budget: $180 million Opening weekend: $38.5 million

Suicide Squad

Budget: $175 million Opening weekend: $133.7 million

MAKING SENSE

OF THE NEW WORLD OF WORK

0.150 0.155 0.160

BREWERS ARE constantly at war.

They steal flavors, fight over bar taps, and sue each other over wacky ale names But the latest Big Beer vs.

craft battlefield is relatively mundane:

nutritional labeling.

Alcoholcompanies were banned from listing serving fact details on cans and

THE CHEAP RENMINBI

ONCE TRIGGERED PANIC.

NOW? TRY BOREDOM.

BY SCOT T CENDROWSKI

F A I R T R A D E

VALUE OF ONE CHINESE YUAN RENMINBI IN U.S DOLLARS

CHINESE central bankers

must be grinning over their

cups of hot tea

In August 2015 the

People’s Bank changed the

way it manages China’s

renminbi The currency’s

demand and rising tion costs So much for atrade war

produc-Still, it’s clear that China’scurrency liberalization,like its other free-marketreforms, has been spotty.China just hosted a G-20gathering in Hangzhou,but its trading partnerswill eventually want clearerproof that China plays fair

2% overnight fall triggered

a global stock plunge, as vestors worried that Chinawas using devaluation torescue a flailing economy

in-When the smoke cleared,China promised to keep theRMB stable

But the currency kept ing: The RMB is down 3%

fall-this year against the dollar,and more against a globalbasket of currencies “It ishard to square the continueddepreciation … with the offi-cial commitment to main-tain broad stability,” CapitalEconomics chief globaleconomist Julian Jessopobserved recently And yetinvestors have reacted with aresounding “meh,” with U.S

stocks doing especially well

For example, Chineseexports haven’t noticeablybenefited from devaluation

They’ve been posting sharpdeclines all year, as China’ssales are hurt by weak U.S

AUG 30, 2016

$0.15

SOURCE: BLOOMBERG

bottles until 2013, when the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau changed the rules.

Now beer giants Anheuser-Busch InBev, MillerCoors, and others (repre- senting eight of 10 beers sold in the U.S.) have promised

to add details about calories, fat, protein, and other nutritional information on all labels by the end of

2020 They say the move is altruistic, claiming a majority

of beer drinkers want

to know what’s in their favorite lager

or pilsner.

But by embracing

transparency, Big Beer has put the little guy on defense The largest brands—including Bud Light and Miller Lite—contain fewer calories and lighter alcohol volume than, say, a heady Russian Imperial stout Plus, it’s costly

to win regulatory approval for each new nutritional label, which could change the economics of small-batch brews The result: Craft-beer lovers could see fewer styles from their favorite local breweries if locals put pressure on them

to start counting calories.—JOHN KELL

A Reading list for powerful women Two new books on gender in the workplace can help women

and men become better colleagues and managers.

BY KRISTEN BELLSTROM AND VALENTINA ZARYA

Do you have a mansplainer

in your office? How about

a “bropropriator” (a man

who takes credit for his

female team members’

work) or an

“undermine-her” (a guy who patronizes

their professional victories and frustrations, Bennett has assembled a novel handbook for the modern working woman.

Like a cubicle pologist, she lays out a taxonomy of common office saboteurs, ways women inadvertently play into sexist stereotypes, and career-stalling pitfalls, like getting sucked

anthro-into “office housework”

or being branded “too nice” to lead.

More important, Bennett provides readers with a litany of strategies for overcoming these hurdles While women who have managed to battle their way into the upper ranks have likely worked much of this out for

themselves, Feminist

women with terms like

“kiddo” or “young lady”)?

Yes, journalist Jessica Bennett’s new book is packed with corny—if catchy—names for the sexism many women encounter at work, but her advice for dealing with this bad behavior is serious Inspired by her own group of friends, who met monthly to discuss

Fight Club is a worthy

addition to the library

of any young female professional or frustrated middle manager—or male coworker who wants

to help.

EARNING IT

HARD-WON LESSONSFROM TRAILBLAZINGWOMEN AT THE TOP OFTHE BUSINESS WORLD

By Joann S Lublin

What do you do if a senior manager at your company propositions you for sex and then tells your colleagues that you slept with him after you turned him down? Carly Fiorina relates undergoing that ordeal—and how she sailed past it to land in the C-suite—in this new compendium of wisdom for the working woman Author Joann Lublin (one of the first female

reporters at the Wall Street

Journal) has compiled

a repository of advice

on a broad spectrum of issues faced by women

in corporate America today—and the book is chock-full of personal anecdotes gleaned from hours of interviews with 52 powerful businesswomen While the narrative can at times seem disjointed, the stories Lublin recounts will be funny and informative to any aspiring exec Hewlett Packard Enterprise CEO Meg Whitman discusses the “scheduling wars” and career tradeoffs between herself and her husband Hearsay Social founder Clara Shih notes the many times she’s been mistaken for a server at tech industry events, and former Yahoo chief Carol Bartz shares the best way to stand in a room full of men: “Spread your feet and put your

‘bitch wings’ on.”

chair, COMPENSATION COMMITTEE

chair, AUDIT COMMITTEE

chair, GOVERNANCE COMMITTEE

CEO

member, board of directors

201612.6%

201618.2%

201620.6%

20052005

WOMEN SEEMto be plateauing in the corner

office, but in the boardroom there’s

increas-ing cause for optimism One-fifth of all board

members of Fortune 500 companies are now

female, and the numbers are rising Women

are also increasingly becoming heads of

boardroom committees—arguably the power

Women now hold almost 28% of all nominating and governance committee chairs, up from 14.2% in 2005 This means they now head up the succession process

at many large companies, which could lead to more diversity at the top.

are also on the

rise but still make

up less than

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W E S T F I E L D I N S U R A N C E C O M

A N I C O N J U S T G O T L A R G E R

THE NAVITIMER 46 mm

F OR T UNE C OM 35

I GREW UPin the New York area My fatherhad a women’s shoe factory in Brooklyn Iwent to Emory University, and I was on myway to law school, but I put that on hold

to help my father when one of his seniorexecutives left I came to realize that the law

is about a book of rules, and he who learnsthem best, and is the most creative in inter-preting them, goes furthest But in business,you get to write your own book every day

Kenneth Cole, 62, has long had a gift for drawing attention He posed as a film- maker three decades ago to attract buyers to his shoe startup and later made his social agenda—promoting AIDS awareness and support for the homeless—an integral part of his company’s brand Cole took his com- pany public in 1994, then bought it back for

$280 million in 2012 Today it sells a wide variety of apparel and accessories His story:

the man becomes the brand

Kenneth Cole founded his own shoe company—then learned how to sell in the most modern of ways INTERVIEW BY DINAH ENG

VENTURE H O W I G O T S TA RT E D

36 F OR T UNE C OM September 15, 2016

After working with my

father for two years, we

started Candie’s, a line of

imported shoes from Italy

Then in 1982 I set out to

start my own business I

had very little money, and

I knew that most startups

don’t survive So I went to

Italy to find shoe factories

that needed business

I designed shoes, made

prototypes, and committed

to ordering 40,000 pairs of

shoes There wasn’t a

mecha-nism to get trademarks

researched and registered

quickly, so I used my name

as the company name

Back then, shoes were

previewed at Market Week

You either took a room at the

New York Hilton, where the

trade show was, or you had a

big fancy showroom I didn’t

have the money for either So

I called a friend and said, “If

I can figure out a way to park

your 40-foot trailer across

the street from the Hilton,

will you lend it to me?”

He said yes, so I contacted

the mayor’s office and was

told we couldn’t park the

trailer unless we were a

util-ity company servicing the

streets or a production

com-pany shooting a film, thus

promoting New York City

So I went to a stationery

store, and $14 later I had a

new letterhead that changed

our name to Kenneth Cole

Productions, Inc I used

the letterhead to apply for

a permit to shoot The Birth

of a Shoe Company, and on

Dec 2, 1982, we opened a

40-foot mobile showroom

just north of the Hilton

We had shoes, klieg

lights, stanchions, and acameraman Sometimesthere was film in the cameraand sometimes not Thebuyers came, and I used atelephone booth outside thetrailer to periodically adjustthe orders by color and size

I sold 40,000 pairs ofshoes in 3½ days and was offand running We had $5 mil-lion in sales that first yearand made a profit of $1 mil-lion Today the company isstill named Kenneth ColeProductions to remind us ofthe importance of storytell-ing and resourcefulness

In the early years I had noreal plan I figured it out as

I went, which is easier to dowhen you don’t have a lot ofstaff and overhead Back then

I believed my job was just tocreate great-looking shoes

That wasn’t true I learnedthat the shoes needed to fit,

be comfortable, and not fallapart I had to invest more inthe construction of the shoe,not just the look

I also learned that my jobwasn’t to tell people what

to wear but to find out whatthey wanted, and to give it

to them in an unexpectedway So I’d spend time

in the stores to see whatpeople were trying on I’d

go to clubs at night becausepeople would dress toimpress, and I’d try to inter-pret what they wanted

To expand, I could eitherfind more people to sellshoes to or find more things

to sell to the same people

I chose to sell in morecategories First I turned toguys In 1984, there wasn’t afashionable part of the busi-

ness for men As a creativeperson, it’s not about seeingwhat’s there but seeingwhat’s not there So I starteddesigning shoes I wanted towear, which was a luxury,and put them in stores Thencame women’s handbags andleather outerwear

I was competing withbigger brands, so we startedadvertising At first, ourads were mostly tongue

in cheek But in 1985 welaunched the AIDS cam-paign, which changed thebrand forever I wanted tospeak to our audience aboutnot just what they stood in,but what they stood for

At the time, the Live Aidand We Are the World cam-paigns were going on aboutstarvation in Ethiopia Iwas shocked that no one

was saying anything aboutAIDS So we did a campaignwith photographer AnnieLeibovitz shooting some ofthe biggest models in the in-dustry in support of Amfar[American Foundation forAIDS Research] It changedthe culture of the company.From that point on, wefound other initiatives thecompany could support

In 1994 I took the pany public We aggressivelyrolled out stores to have adirect relationship with theconsumer and started toexpand globally I had neverhad debt, and going publicallowed that to continue.Over time, it got harder

com-to make com-tough decisions

in the public arena, so afew years ago I decided tobecome smaller to get big-ger and [closed a number

of stores] I wanted to gointo a new business modelwith e-commerce, so werebranded and now speakabout “the urban uniformfor the courageous class.”Today, design is notproprietary because of theInternet and social me-dia What is proprietary

is your brand You need aclear point of view that isconsistent and delivers onexpectations The reality is,everybody’s defining theirown brand on Facebook,Twitter, and Instagram.Hopefully, they’ll allow you

to be part of their brand

We went private in 2012,and I own more than 80%

of the company Success is

a very personal expression,and a dangerous one Ifyou stand on what you’veaccomplished, it gets in theway of what you still need

to do I stay focused onwhat’s ahead

WE ALL WAKE UPin the morning and look at what we need to do

to balance the personal and the professional In my case, I added community engagement to the mix and brought my social agenda to work.

TODAY YOU HAVEto monitor message and impact What is the return on the investment?

Community engagement is still ROI, but it’s return on involvement We encourage other businesses to find their voices and connect with the greater community, which is the hand that feeds them In the past we used to work hard so we could give back later But if you make giving part of the journey

to success, it makes the journey more meaningful.

Fortune and Goldman Sachs are pleased to partner and present the annual Goldman Sachs & Fortune Global Women Leaders Award This year’s award will go to two international business leaders who have participated in the Fortune/U.S State Department Global Women’s Mentoring Partnership or the Goldman Sachs 10,000 Women initiative, have applied learnings to their businesses, and have effectively

demonstrated the multiplier effect of investing in women The award will be announced October 18 at the Fortune Most Powerful Women Summit in Laguna Niguel, CA

The Fortune/U.S State Department Global Women’s Mentoring Partnership enables rising-star women from developing countries

to work with leaders in the Fortune Most Powerful Women community

The Goldman Sachs 10,000 Women Initiative was launched in 2008 as an effort to foster economic growth by providing women

entrepreneurs around the world with business education and access to capital The initiative has reached women from across 56 countries through a network of 100 academic, nonprofit, and bank partners Having achieved its initial goal of providing 10,000 women entrepreneurs with business education, 10,000 Women expanded its efforts to address one of the most significant barriers faced by women entrepreneurs around the world – access to capital to grow their businesses In partnership with International Finance Corporation, 10,000 Women launched

in 2014 the first-ever global finance facility dedicated to women to enable up to 100,000 woman entrepreneurs access to capital This private partnership has catalyzed new investments from both the public and private sectors, including the Overseas Private Investment

public-Corporation, announced in 2015 by President Obama, and two leading European institutional investors To date, the facility has committed over $580 million to banks in 16 emerging markets that will enable more than 30,000 women entrepreneurs to access capital

The Goldman Sachs & Fortune

GLOBAL WOMEN LEADERS AWARD

To learn more about this program visit:

www.GoldmanSachs.com/10000women @GS10KWomen

Celebrating the Power of Women

VENTURE G R E AT W O R K PL A C E S

38 F OR T UNE C OM September 15, 2016

T HE DECISIONto seek a master’s degree

can be fraught with worries over thecost, the time, and the ultimate payoff

For Kathy Phelps it took only seconds

to say, “Heck, yeah.” Not only was her

$30,000 tuition waived, but the teachers came to

her office The weekly three-hour classes were held

inside a conference room just one floor down from

her desk inside Dixon Schwabl, an ad agency just

outside Rochester, N.Y

By the end of the 16-month program, Phelps

received her master’s in strategic marketing from

Roberts Wesleyan College and also positioned

herself as a comer at the company, joining a key

leadership committee and getting a raise to boot

Says Phelps, 35, who is now a vice president: “This

is where I’m going to be for the rest of my career.”

That’s the idea The on-site master’s degree

program, launched a decade ago, is one of many

reasons Dixon Schwabl

regu-larly shows up on Fortune’s

list of 50 Best Small andMedium-Size Companies

to Work For The firm has aphilanthropic and employee-centered culture wherestaffers are privy to com-pany financials and enjoyperks like paid time off forvolunteering, impromptu icecream breaks, and scaven-ger hunts The company isflooded with résumés andretains 91% of its hires “Wewant to motivate people tocome to work every day,”

says Lauren Dixon, the pany’s cofounder and CEO

com-The master’s program gotits start after Dixon discov-ered that Roberts WesleyanCollege, which is a client,needed classroom space toreach students on the eastside of Rochester near DixonSchwabl’s offices It takes 50minutes to drive across townfrom the college campus

Dixon agreed to provideconference rooms for twodegree programs, one onstrategic marketing and theother on strategic leadership

She offered up the firm’s 115employees as guest speakersand provided real-world casestudies, as well as access tothe agency’s editing, video,and recording equipment

In exchange, the ad agencyreceived two free seats persession in each program

Dixon Schwabl isn’t a cal classroom setting, saysRoberts Wesleyan presidentDeana Porterfield The lobbyhas a twisting slide; bright,funky art covers the walls;and there’s the lively bustle

typi-of a company engaging inthe very processes that thestudents are studying “It’sdynamic,” Porterfield says.She’s seeking similar corpo-rate partnerships to houseother master’s programs.For Schwabl, sharingoffice space has created anopportunity for easy, freeleadership training SixDixon Schwabl employeeshave received their master’sthis way (with four more inthe program now), and allhave risen to leadership posi-tions in the company It alsoraises the agency’s visibilitywith the students, who couldbecome future employees orclients “We can shout fromthe rooftops what we do,”Dixon says In other words,it’s great advertising

getting

schooled at work

Ad agency Dixon Schwabl offers both formal

and informal education inside an

employee-centric company BY JENNIFER ALSEVER

THE 50 BEST SMALL AND MEDIUM-SIZE COMPANIES

TO WORK FOR NO 11

Headquarters Victor, N.Y

Annual revenues $71 million

Perks Two employees a year getfree graduate educations in-house;all staffers are eligible to get paidtime off for volunteering

Inside Dixon Schwabl’s offices.