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NewslettersCEO Daily

Fortune’s Future 50 List: CEO Daily

By
David Meyer
David Meyer
and
Alan Murray
Alan Murray
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By
David Meyer
David Meyer
and
Alan Murray
Alan Murray
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October 21, 2019, 6:02 AM ET
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Good morning.

This morning Fortune releases its third annual Future 50 list. This is our most ambitious list in terms of methodology. Developed with Martin Reeves of the BCG Henderson Institute, it is not based on measures of past performance, but rather attempts to measure commitment to the future. Half of it is based on the market’s assessment of a company’s future potential beyond the existing stream of profits; the other half reflects a sophisticated assessment, using natural language processing among other tools, of strategy, technology, people and structure. You can read more about the methodology here.

As I’ve argued in this space before, the time horizon of companies and their social impact are correlated. Companies focused on short term profits are much more likely to cut corners and do damage to employees, customers, their communities, the environment or other stakeholders. Companies committed to the future, like those on this list, are less likely to do harm and more likely to be focused on creating new value. It turns out, they also generate profits for their shareholders; last year’s 50 recorded shareholder returns of 13.9%, significantly above the 7.6% for the MSCI world stock index.

The top 10—many of which, not surprisingly, show up on other Fortune lists like Best Companies to Work For, Fastest Growing Companies and Change the World—are:

  1. Workday
  2. Square
  3. ServiceNow
  4. Contemporary Amperex Technology
  5. Spotify
  6. Atlassian
  7. Xiaomi
  8. Ctrip.com
  9. Salesforce
  10. Vertex Pharmaceuticals

You can read the full list here.

I’m in Washington this morning, at the Fortune Most Powerful Women Summit, which has been rocked this year by the political divisiveness that permeates this city. But we will carry on, committed to an open and inclusive dialogue on the important issues of the day. I will report back here tomorrow, or you can follow the proceedings on fortune.com.

Alan Murray
alan.murray@fortune.com
@alansmurray

TOP NEWS

Boeing Scrutiny

U.S. lawmakers probing Boeing and its 737 Max crisis have found a three-year-old internal company survey that showed around a third of employees felt "potential undue pressure" from above regarding safety-related approvals. So the lawmakers are stepping up their scrutiny of management. Wall Street Journal

Criminal Records

JPMorgan Chase will try to make it easier for people with criminal records to enter the workforce, including at the bank itself—it's removing all questions about criminal records from its job applications. It also will lobby state and local governments to change laws so that fewer former felons are barred from employment in industries such as finance. Fortune

Brexit Push

The U.K. Parliament voted Saturday to withhold its approval for Prime Minister Boris Johnson's Brexit deal, so as to force him to ask for a three-month extension to the Brexit deadline. He has now done so, extremely grudgingly (he also sent other EU leaders a letter arguing against an extension, though this had no legal effect). Johnson will today try again to get his deal through Parliament. Bloomberg

Canadian Election

Canadians go to the polls today. The Liberal party of embattled Prime Minister Justin Trudeau is running neck-and-neck with Andrew Scheer's Conservatives, and neither is likely to win a majority, meaning smaller parties could play a crucial role in the coming days. CNBC

AROUND THE WATER COOLER

Spotify's Future

Spotify is at the forefront of a surge in music revenues over the last five years, and is in the top five of Fortune's Future 50 list. But will the Swedish streamer hold its position at the top of the charts? It's already having trouble maintaining profitability and its losses are growing in absolute terms. So there's good reason to keep an eye on Spotify's current renegotiations with the labels. Fortune

Wirecard Audit

After a Financial Times investigation alleged the fraudulent inflation of sales and profits at German payments company Wirecard, the firm has commissioned KPMG to review its accounting practices. Wirecard strenuously disputes the paper's allegations, which knocked its share price by 20% last week. FT

Capital Group

Fund manager Mark Denning has been forced out at Capital Group following a BBC investigation that suggested he had broken investment rules, by secretly investing in the same companies as his funds. Denning, who managed more than $300 billion, denies wrongdoing but Capital Group says it "took immediate action" after the BBC approached it about its investigation. BBC

Berlin Rents

German property companies such as Deutsche Wohnen have seen their shares slide on the news of a five-year rent freeze in Berlin. The Berlin Senate approved the freeze Friday and, pending final parliamentary approval, it will go into effect in January. Reuters

This edition of CEO Daily was edited by David Meyer. Find previous editions here, and sign up for other Fortune newsletters here.

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