LG Electronics

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World's Most Admired Companies

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The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

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Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

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For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

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Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

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Since she took the helm at Flex in 2019, Revathi Advaithi has overhauled its portfolio, exited volatile markets, and quietly positioned the global electronics manufacturing giant as a major player in AI infrastructure. How to pivot and lead a company that make everything from electric car circuits to cardiac catheters? We sit down with its chief executive.

Revathi Advaithi
Chief Executive Officer, Flex 

Ellie Austin
Editorial Director, Most Powerful Women, Fortune

How Flex Got its Groove Back

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Flex is the kind of company that most people don't see, but everyone depends on. Since taking over in 2019, CEO Revathi Adviti has recast Flex from being a sprawling manufacturing company into a major player in reinventing AI infrastructure. To discuss more about how she's led this transformation and what it means to run a company that builds the hardware behind the future of technology, please welcome Rayati. At BT and she'll be interviewed by our amazing Ellie Austin. OK Wow, what a welcome. Thanks, guys. OK, so I want to start with a very important note that Ravay is one of our 100 most powerful women in business globally. As per Fortunes List, which was published in May of this year. So it's such an honor to have you with us today, Ray. Um, so as we heard in Jason's introduction, you've executed a pretty impressive transformation at Flex. You joined the company as CEO in 2019. Give us a brief overview of what your strategy was in those early days when you went in. Yeah, so when I started in 2019, you know, Flex is one of the world's largest contract manufacturing companies, around $25 billion. I'd say when you hear about contract manufacturing companies, you hear about people like Foxconn. So The top three in the world and it was going through a transformation phase that didn't go well. So when I joined in 2019, the stock was, you know, around $7. The CEO had just left the company, so I was brought in, my background being mainly in industrial companies to remake the business itself. And I approach every job the same way, and this has been in every sector I've been in, which is oil and gas or aerospace or any electrical, any sector is really focused on the portfolio, kind of say, do you have the right products for what the customers want and will they pay for it, right? Pretty simple. So focused on the portfolio, did the stuff of exiting a pretty significant part of our portfolio, which is more consumer driven, and then refocused the business on really kind of high value goods that we could actually drive value for with customers and in the middle of that. As we were doing all of that, this is well before kind of people were talking about AI and Nvidia and all that. My background being with Power, you know, Flex was building compute racks for kind of the data centers, and I thought, well, someday compute's going to be power hungry. Why don't we Build a power infrastructure and so started buying a whole bunch of power companies and put together a power infrastructure so today Flex 20% of our portfolio that's growing at 35% builds power, cooling, and compute for data centers so really have become. A contract manufacturing company and then somewhat of an industrial AI infrastructure company and then in the 7 years this is my 7th year we've done really well. The stock's around 500+% we've spun off a certain part of our portfolio so really. Do a full blown transformation of the whole company end to end. So you mentioned that about exiting certain markets, and I know that you exited things like footwear, like smartwatches, like laptops. Tell us a bit about what your criteria was for making those decisions to leave certain markets. Yeah, so if you think about, you know, You know, you're a Western company that if you look at our capital markets and our cost of capital, you have to get the returns for it. So if you're in high volume consumer goods that have very cyclical ups and downs, you don't get the return in the time period you're looking for. So if it was a very cyclical. and the product portfolio moved really fast. I felt like the returns wasn't being made through the cycle, and maybe the Asian companies that had a different cost of capital and were funded in a different way were better suited for doing that. So we exited cell phones, you know, very famously things like Nike footwear, all those things we. Exited because I didn't feel like for our returns that we were looking for it would provide that through the cycle. So to use a very systematic way of thinking about what are the financial returns. Will customers pay for those financial returns over a long period of time? Can you drive value? And if you can do that, you stay, otherwise you exit. It's obviously been a huge year for manufacturing with the current administration prioritizing reshoring a lot of manufacturing. What will, in your opinion, never be made on US soil? Um, well, it'll be hard to imagine phones being made in the US soil. I know that's, uh, publicly not a great thing to say, but, um. You know things that take uh a significant amount of labor still will be difficult things to be made in the US soil. I would say not because we're not capable or we don't have the capacity to do it. I would say that the population doesn't support that kind of skill level so it's more to do with what is the best use of our resources in the United States, right? You want higher skill level jobs. Jobs and to do higher skill level jobs you want to do the more complicated things and cell phones are not the most complicated things to do, you know, so is in footwear, right? So I don't think those things are the things that you would make in the US and hopefully you can do final assembly or other things that would add value to it, but I don't see those things being reassured in. And I know you speak a lot about job creation, and so how do we go about upskilling the domestic workforce? I would say, you know. There's a lot of work involved in this, so some important things that are happening in the US today is, you know, a significant part of our employment is around warehouses, right, e-commerce, and you think about the future of warehouses and e-commerce with automation, with human robots, all of that that's being worked, you see those. Jobs migrating to a higher skilled workforce, so companies who are in that space have to undergo significant transformation and say what is our role in reskilling this workforce, right? And I talk about this even in our factories today. So my uh employees who come into the factory today and maybe operate a 5 axis CNC machine in the. Future they may be just programming that from their phone. This is my responsibility to train and reskill that workforce to be able to do that. So I'd say organizations have a pretty significant role. You have to kind of say there's the world going in the next 5 years and we have to have a systematic way of really reskilling the American workforce, and I'm a huge fan of that. I feel like. Organizations own it. I feel government owns it, and a good cross partnership between industry and government is really important to be doing that. Now. Flex is very clearly booming. At the same time, your revenue has dipped slightly over the past couple of years. I think it was $27 billion in 2023. It's now $25.8 billion still huge. But what do you attribute that slight dip to? I would say because we're continuing to remake the portfolio, right, so, um, you know, we used to be less than 3% manufacturing margin type of business, right? Today we're like a 6% operating margin business, so we continue to exit parts of the portfolio that we think long term are not financially viable for where we need to be. So I don't really focus on kind of. Revenue per se at the top level. I focus on revenue and the high value areas that we're growing so our data center AI infrastructure business is is around $6.5 billion growing at 35%. That is more important to me than trying to figure out, are there other parts of the business that aren't long term for us that will continue to kind of re-scope. So that's how I think about overall. Revenue. Flex operates in 30+ countries, I think, um, and you and I caught up yesterday and you were saying that a few days ago, well last month, one of your facilities in Ukraine was hit by a missile, which I'm sure is an incredibly kind of complex and upsetting time. Take us inside kind of your response in those hours afterwards, and then second part, what are your operations going to look like in Ukraine going forward? I would say, you know, this is the role of every CEO, right? I mean, you never know what's going to come in the next minute and the next day, and you have to kind of go with the flow as these things happen. It's like the pandemic. Nobody realized you'd wake up one day and half your workforce couldn't show up. The next day, I think it's similar to that, right? It was around 10 p.m. I got a text from my team saying that our site in Ukraine was hit. I first thought it was a joke because we're in the western part of Ukraine, really far away from where any of the shoes have been. So I picked up the phone and called and then I'd say our team was on the phone the entire night, right, trying to figure out what happened and why it happened. But the incredible part of this is how good our teams are, right? 600 people evacuated in 7 minutes, no loss of lives. We had bomb shelters in place, unbelievable. So once we understood our employment. were good. Everything else fell in place, right? That's the most important thing as far as I'm concerned. We're in the process of evaluating and rebuilding, right? We still don't have a good view of kind of how the site looks. There are parts of the site that are destroyed, so I'd say the team will reevaluate, very committed to making sure that awesome team in Ukraine gets a chance. So I would say that, you know, it's one of our best teams. One of our best manufacturing sites and we'll continue to be supportive. And so when you say rebuilding, rebuilding the site or going elsewhere, or is that not a decision that's been made yet? I would say we definitely rebuild the site. OK. And and this is connected is kind of the resilience of supply chains, particularly in this time of really kind of unending geopolitical. Volatility. I know that you've integrated AI into your supply chains. Talk to us a bit about that and the efficiencies that you're seeing as a result. Yeah. See, I think the whole AI story is interesting. It's funny. It depends on the news of the day. Some days, AI is the most coolest thing, and then suddenly, oh, everything's coming to a, you know, grinding halt. Is it really happening? Um, so. I want to talk about it practically speaking, how I think it works in industries and you know factories like ours. First is, most companies like ours, most industrial companies, most manufacturing companies, anybody who's making anything probably has 50 plus software systems that are sitting in your factories. Like 50 is probably the low end, right? And so putting all those together and getting information that can then harness the power of AI, forget it even generative AI, it's happening but happening slowly. There's a lot of work that needs to happen for that, but I feel the future of this is very significant for for companies like ours and for everybody in this space because. Manufacturing productivity, despite everything that's been said, really hasn't moved in the last decade. Labor arbitrage maybe has been added a little bit, but other than that it really hasn't moved. Why? Because things are super fragmented in factories. Most factories you run into other than a few maybe in China are not fully automated end to end. So to be able to do that we need to take all these fragmented systems, be able to harness the power of information that comes in from that, and be able to run our factories like your car navigation system. Think about the future of that. So much to be had. I'm very bullish about this. I feel like the productivity journey through AI has just started. For most organizations like ours, and so I'd say don't pay any attention to the to the news cycle. It's not about who's using Chad GPT today. That's just barely the starting of of everything. When big industrial companies can harness the full power of AI, it's going to be a game changer. And what's the timeline for that, do you think? I think the time, I think in the next. My view is in the next 3 to 5 years, this whole data issue will get figured out, right? Because it's going to be controversial when I say this, but enterprise software companies, I'm sorry, a lot of you are here in the audience and listening, have sold as many softwares, fragmented systems that have been hodgepodge and, you know, jerry rigged together. So the first thing we have to do is fix that. And so that's going to take a little bit of time, but there is such innovative startups that are coming up that are going to skip all these systems and processes and really put overlaying, I'd say, systems in place that doesn't do all this data integration work. So I would say in the next 3 years we should be seeing full blown productivity coming out of these AI. at least for us, that's what we're pushing our teams to do, right? And I think most companies, most organizations, if they're thinking about it the right way, we'll be driving for that. I'm gonna ask you one more question and then open it up to see if any of you have a question for her. What's one thing that Flex isn't doing well at the moment that you're excited to see progress over the next year or so I'd say this is, I mean, the AI question is a big one, right? You know, we just, I was just talking to my teams last week about this. I want to see all this happen in the next year. I don't want to wait for 3 years. Like, who doesn't want to get this done? Like if I can go into like, you know, loud or chap TPT and it's solving these complex problems. For me, I don't want my supervisors to walk into a factory and then having to do spreadsheet and resources and MES systems and all that. I want them to be able to do it from their bed in their home, and I want them to do it tomorrow. So I would say that is where we need to progress and really go fast and um as far as I'm concerned, 3 years is too slow, OK. I love the impatience. Um, question over here. Nazar, is that you? Tell us your full name, Naz, um, where you're from. Uh, thanks. So thank you so much. You're such an inspiration. Um, it's been a pleasure listening to you during the MPW as well as this session. Um, so I'm Nas. I'm, um, co-founder and CEO of Vernie KI. We are all about making it so that operationally heavy enterprises can actually be silo, which is exactly the point that you were making. They make it so that in an AI native way we give you guys basically this operating platform that ends up helping both your employees as well as, you know, basically consumers. You have one across the board in a very unified and transformative way so that you don't have an AI that answers questions of your employees in a completely different way than the AI that answers the questions of say your um customers. So on that point what we've seen as the biggest uh challenge is that of course enterprises are very complicated with so many owners, so many hands. Uh, we've seen this, uh, 3 in a box model where the CEOs in the are in the driver's seat with the CTOs on a CXO next to them, 3 people helping drive the agenda, but the question back to you is, as the CEO, uh, how do you think such a transformation can happen if you are in the driver's seat to help. Silo and kick out all these again legacy software providers that have bloated your organization and become very expensive gold plated silos. How do you think you can work with your C level executives to actually go about these transformations which naturally take time and a lot of resistance? I would say that the CEOs have to be at the forefront of rethinking organizational design to drive this kind of change. It has to come from that office, and you know the MIT study that everybody was surprised about that 95% of AI projects are failing is not a surprise because. Because most of these are kind of someone is just, you know, kind of finding a project and resourcing it and doing it. So I just had this conversation with my team yesterday is that, you know, everyone is doing projects across the organization, but it has to come from my office to think about design. organizational structure. How do we break the silos? How do we pick the top 5 things that will drive the most change in the quickest way and get that done? And I would say, and most CEOs I'm talking to are thinking the same thing. So I think it's a common conversation across almost every CEO that I hear and talk to today. Thank you, Nas, um. Yes, one final question from the audience. If you could keep it brief, please, because we are running short on time. Thank you and tell us your name. Hi, I'm Emily Sherberth with APO. We do advisory and communications work. Um, I, I know several people that work at Flax, they talk about how incredible the culture. There and I just maybe wanted to ask you um what's what how have you really instilled something special in the culture at Flex and what are some of the the things that you think are most important in this time of uncertainty and um chaos. Well thank you for that and um I love the fact that our flex people talk about our culture. It's based on very simple principles, right? Treat everyone with respect whether you're in a shop floor in Poland or, you know, China or in the C-suite. We like to say just treat everyone the same way. That's the cornerstone of everything we do. And so in a time like this when geopolitics and. Having people across the globe can be quite traumatic for our employees. We just keep reminding everybody of that. It doesn't matter where you are, how you work together. It's really important that you respect each other. And how do you do that? Is that communications? What does that look like? Lots of communications. When I first came, we published kind of very simple 3 to 5 rules on how you treat people, and we've kind of stuck with that, and we remind everyone of that all the time. And you see that in meetings with our teams and my team, and, and so you have to live it. You have to show it by example, and then you hope it spreads to 140,000 employees across the world, right? And I love the fact that it does. I will say, and don't confuse that with the fact that we aren't competitive. We're competitive. We want to win, you know, we're very aggressive about everything we do. That's why we've delivered the performance we've done. and I think those two things can exist side by side. So, and I like to think that we'd like to show up and be competitive, but at the same time do it in a way that we have fun with each other and like being around each other. So a culture that's really important to me. Great question. One very final quick question for me that I would be remiss not to ask as someone who works for the most powerful women. Only 30 to 35% of the global manufacturing workforce. Is women. It's made up of women. I know it's something you're very passionate about, big question, 30 seconds to answer, how do we change that? I would say by doing what we continue to do, which is every woman around the world should push the story of why aren't you hiring more women? It has to come from women, men across every single platform. You have to ask the question of what makes them different? is it skills? Is it competencies, and really change the thinking around it. This will not come by just some C-suite initiative. It has to come up and down the organization. It has to come horizontally across and it's going to take a lot of work. I feel like in my lifetime we'll get to the 50%, which is where we need to be, and I want to see that in my lifetime, but it has to come from conversations like this. It has to come in everyone asking the question in their organization and forcing it to happen. OK, well, I count on you to keep asking that question. Ravay, thank you so much for joining us today. Thank

Sean Kerins says his “foot is on the gas” when it comes to hiring tech talent.

Arrow Electronics' new CEO says supply chain is doing better, but still not back to normal

Leadership

Arrow Electronics' CEO: Supply chain better, but not normal

Sean thank you so much for joining us to talk about arrow electronics. You know, most people probably don't know about the critical role that your company plays if they're looking to buy a car, like an electric vehicle or a smartphone or some high tech home appliance? Tell our viewers exactly what does Well Susie, we're a global technology distributor and that means we help some of the biggest names in technology get their products to market. And that could be everything from semiconductors to data center computers, to cyber security appliances, to software and cloud solutions, You name it. And you know, we like to say an arrow that if a device takes an electronic charge, there's a good chance that we probably played a role in designing it, building it and certainly selling it well last year there was a big shortage of chips, semiconductor chips and we all know that there were long wait times if you were looking to buy any kind of electronic device. What about now is that chip supply crunch over? There's been progress for sure. Are all the issues fully resolved? No. And the way we know that is we see, you know, lead times for all the semiconductor technology that we helped sell are still twice their pre pandemic average. And that means that, you know, if you just bought a car a few weeks ago or if you're still waiting on something you ordered for home automation. I think we got a little ways to go before supply and demand fully normalizes and those lead times can become more predictable. What are you hearing from your other customers? Besides the consumers, you sell components to big companies like Microsoft or IBM Panasonic, what are they telling you? So they're seeing a couple of things. One in fact in places they're still working their way through inventory that built up over the past couple of years while they waited for that, that famous golden screw. And they're also telling us that they're now starting to re evaluate their own supply chain processes, that they get better visibility to semi semiconductor supply going forward. And despite all of that, your company just reported very strong sales. In fact you told investors they were the strongest financial results of any year in the history of the company. So can you keep up that pace or can you do better in 2023, given everything you've told us, I think there's enough uncertainty out there to uh to tell us that, you know, looking much beyond 90 days is going to be a bit of a challenge. Having said that we still believe in the big mega trends over the long term and you know, we want to come out of this year, even if it's more challenging in a position to really hit the ground running in 2024 beyond. So we're gonna stay invested in our our growth priorities as best we can. So what if the U. S. Economy goes into recession, what does that do for your plans? Well, you know, I think this is a time where the phrase uh cautiously optimistic is very appropriate obviously if a recession were to occur more deeply, you know, we're certainly well prepared. I think the big question is you know, are we in for a moderate decline over a reasonable period of time or are we in for something sharper and longer lasting? And there's still I think a number of variables to play out including you know, the question around you know, when does the chinese economy get back up on its feet? Well whatever happens with the economy and the business environment, I understand that you are laser focused on hiring, tell us why what is your thinking on that? Well look, we think beyond this year we think the you know the big technology megatrends are all lining up in our favor. You know, we talk about the electrification of everything, you know, E. V. In the automotive industry is a great example. We talk about, you know, the automation that we're now seeing embraced in the medical device and healthcare industry. We think that's a great future market for us as well. So I think the job of any Ceo and his or her team uh in a more challenging year is to make sure they emerge even stronger uh than when they came into the year. And so we know exactly where we think growth will come from long term and for us that means more sales capacity, that means more engineers. And that means more people to be able to help our big customers and suppliers manage their supply chains. And I really don't want to take the foot off the gas when it comes to those disciplines uh for our prospects down the road. Well, are you finding it easier for Arrow to find top talent given that there are so many talented tech people looking for jobs right now? I wouldn't call it easy. Um and I would say attrition is still higher than it's been historically across the industry. So we've developed a pretty good motion around, you know, constantly looking to replace people that may have left at the same time looking for new talent to fill uh new roles that we're investing in. I think our our HR team does a really good job sourcing from all kinds of places. And um you know, I'd say we're keeping up pretty, respectively, you've also made it a priority to hire and promote more women in leadership positions. You've said we need to do better. How's that going so far? You know, Suzy, I've always believed that, you know, we're going to be most effective when we look like the world around us and so we're making progress, you know, building a more diverse uh workforce, not just in the individual contributor ranks, but also at the top of the house. I'm really proud to say that we now have four women on our executive committee, but don't get me wrong, there's still a lot more for us to do. Well sean, let's talk a little bit about you, you became Ceo of arrow just last summer and this is the first time that you've been Ceo, what's the most important leadership lesson that you've learned so far as you're running a huge fortune 500 company? You know, I'd say two things. The first is learning is paramount as a ceo. You now encounter things that maybe you never did before in your career. So you've got to be willing to probe and learn, uh, each and every day. The second is you've also got to learn how to let go and rely increasingly on others to get the right things done for your company. And I would say I'm making progress with both, but it is a journey. Well you said many times that you learned a lot about team building and leadership from playing basketball at Syracuse University, you are the captain, you were the star player. And what would you say that college sports taught you about leadership? You know, I think sports is a great proxy for what you'll find in the professional and working world. Uh, you just don't happen to know it at the time, but you know, being part of a team means you're part of something bigger than just you. Uh, and there's a lot of reward in that. But great teamwork comes with lots of trust and lots of sacrifice and that's a lesson that stood with me over time. I think the other things you learned from competitive support, competitive athletics at a young age is this idea of overcoming adversity when things don't go well, this idea of persistence and work ethic because you know, you don't get good overnight, you get good over time. Um and that's true of companies and leadership as well. Uh you know, you've got to continue to work on the skill sets that will make you better. Well, your coach at Syracuse University was the legendary Jim Boeheim. What's the best advice you got from him about leadership when it comes to coach Boeheim? He was the one that taught me that as a leader. It's all about the examples you set and the deeds you do not the words you speak. And that's a lot about, it says a lot about how I think about leadership now as the Ceo of Arrow electronics. Well let's talk about that because in the corporate world, the job description for Ceo has changed so much over the past couple of years. The expectations um from customers from employees and from even the public has really increased. So knowing all of that, how would you describe the way that you want to leave Arrow electronics? You know, I think listening is more important than speaking, I think being accessible uh to your leaders and their employees in the right ways at the right times, uh, means a lot to them. I think being able to show them that you'll never ask the organization to do something that you're not willing to take on yourself. And being someone who, everyone understands, uh, will ensure the company always does. The right thing goes a long way to, you know, our character and our values going forward. And I will, you know, remain committed to those thoughts.

Everything from gas to electronics is poised to become more expensive.

Russia’s invasion of Ukraine will likely hurt your wallet

International

Russia’s invasion of Ukraine will likely hurt your wallet


Lack of supply is delaying the production of cars and electronics.

What's causing the global semiconductor shortage?

Mm Mm hmm. A surprise that the pandemic has some role to play in the current chip prices as people pivoted to working at home last year, demand for personal electronic search, prompting gadget makers to increase order for chip set. At the same time, demand for cars declined, prompting automakers to cut orders. Now, with the pandemic easing, automakers are looking to make a comeback. But chip makers a busy, satisfying demand for booming electronics sales. With supply now suddenly outstripping demand chip shortage emerged. Consolidation of the chip industry exacerbated the crisis. To many of them was leading chip designers like Qualcomm. New video, even Apple and Intel actually outsource some or all of our production to contract manufacturers. The world's leading contract manufacturer, TSMC manufacturers about half of the world's made to order chip supply. You have a 30% is made up by roughly three over company. With so few leaders, the industry doesn't have excess capacity to absorb any extra demand for the U. S. And Europe. It also doesn't help that three of the four leading chip makers are in Asia. That regional dominance creates a bottleneck in global supply lines. Mm yeah, mhm for the U. S. A likely solution will be the onshore, more chip production that will increase both domestic and global capacity for manufacturing. But this isn't a short term solution. America has already invested billions in invigorating the domestic industry, but building manufacturing plants takes years for now, for any way out of this chip crisis is just to wait mhm.

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