Crain 100 Layout.Indd

1OO INNOVATORS, DISRUPTORS AND CHANGE-MAKERS IN BUSINESS

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G.D. Crain’s publishing philosophy was simple in 1916 and has endured for 100 years. Find an area where there is a real information need, then “put the reader ﬁrst from the ﬁrst day.”

CONGRATULATIONS to Crain Communications and company president and Medill alumnus Rance Crain on 100 years of serving the information needs of business professionals.

medill.northwestern.edu @medillschool Crain Communications Inc, corporate headquarters as well as headquarters for Automotive News, Autoweek, Crain’s Detroit Business and Plastics News.

and talents of great people, remaining true to our Dear Crain Reader founding principles – like putting readers first and treating your employees like part of the family – is rain Communications is celebrating what will keep us growing for many years to come. 100 years in business, and to mark this We are as excited about our future as we are C milestone, we wanted to do what we do proud of our past. best; tell the stories of business leaders like you. In an era of sound bites and clickbait, we know We have created this special supplement as a token that success in media will only occur through of thanks to you, the loyal readers of our many continued investment in quality journalism and Crain publications, and to celebrate our success the latest technology, delivering business news and yours. and information to our audience when, where and In this Crain 100 supplement, our award-winning on whichever device they choose. publications have come together to compile a list of Over the past 100 years, there have been many 100 global leaders who are making an impact in the ups and downs for our company and our industry. industries and markets we serve. Men and women No one can predict what the future holds for who have made a difference in their fields through a media but, rest assured, Crain’s award-winning combination of hard work, integrity and maybe just publications will continue to thrive by putting a bit of good fortune, much the same way Crain has you first. For 100 years and beyond, your success thrived for 100 years. has been the key to ours. We hope you enjoy this Crain founder, GD Crain Jr., once wrote, special tribute to leaders like you. “Personalities pass. Principles persist.” While Crain has grown over the years through the efforts Thank you.

1 ll over the world, the publications of Crain Communications Inc. cover the ways that business A is changing, adapting and pushing boundaries. This publication, the Crain 100, is a compilation of the people behind the changes we write about. The people who are profiled represent new ideas and old ideas – but often the mix of new and old. Theo Epstein took the age-old sport of baseball, but applied data and analytics to re-form the Chicago Cubs. John Bogle took the idea of investing, but became the creator of the index fund as we know it. Matt Maloney took the simple idea of ordering food and created GrubHub as a way to make it more efficient. The 100 people, such as Epstein, Bogle and Maloney, were chosen to be featured in this section by the editors of 13 media brands owned by Crain Communications. It was an effort that spanned newsrooms across the United States and beyond. 1O O The key is the expertise from the news brands within Crain. Automotive News, for example, offered glimpses of the YEARS OF people changing the auto industry. Advertising Age profiled those influencing media and advertising. A diverse range of businesses were profiled in regional publications such as Crain’s Detroit Business, Crain’s Chicago Business and the TELLING new email-based publications covering cities like Atlanta, Indianapolis and Los Angeles. In heated newsroom debates, each publication chose GREAT the change-makers whom they cover on a regular basis. The Crain 100 tells those stories definitively, much like the stories written daily by its media brands.

STORIES THESE EDITORS HELPED CRAFT THIS LIST: Ken Wheaton, Advertising Age Jason Stein and Krishnan Anantharaman, Automotive News Michael Arndt, Crain’s Chicago Business Elizabeth McIntyre, Crain’s Cleveland Business Jennette Smith, Crain’s Detroit Business Jeremy Smerd, Crain’s New York Business Fred Gabriel, Investment News Merrill Goozner, Modern Healthcare Amy Resnick, Pensions & Investments Donald Loepp, Plastics News Bruce Meyer, Rubber & Plastics News David Zielasko, Tire Business Rob Elder and Jennifer Fisher, Crain’s National

CR AIN 100 TEAM: Editor: Daniel Duggan, Crain’s Detroit Business Sales Director: Patrick Cannon, Plastics News Design: Ken Ross, Autoweek

2 AWpage_new-awpagead.qxd 8/11/2016 1:57 PM Page 1 CONTENT

Travis Kalanick 21 CEO | Uber | San Francisco

Angela Ahrendts 8 Senior vice president-retail, online stores | Apple Inc. | Cupertino, Calif. CHICAGO BUSINESSᮋ

Shonda Rhimes 10 Theo Epstein 22 Founder, chairman, CEO | ShondaLand | Los Angeles President of Baseball Operations | Chicago Cubs | Chicago

Brian Lesser 11 Matt Maloney 23 North American CEO | GroupM | New York CEO | GrubHub | Chicago

Indra Nooyi 12 Brad Keywell and Eric Lefkofsky 24 Chairman, CEO | PepsiCo | Purchase, N.Y. Co-founders | Uptake | Chicago

Jeff Bezos 13 Jeanne Gang 25 CEO, chairman, founder | Amazon | Seattle Founding principal | Studio Gang Architects | Chicago

Mark Zuckerberg 13 Mary Dillon 26 Founder, CEO | Facebook | Menlo Park, Calif. CEO | Ulta Beauty | Bolingbrook, Ill.

Evan Spiegel 14 Tavi Gevinson 27 Co-founder, CEO | Snapchat | Venice, Calif. Founder | Style Rookie | New York

Michael Ferro 27 Chairman | Tronc | Chicago

Elon Musk 16 CEO | Tesla Motors | Palo Alto, Calif. CLEVELAND BUSINESS

Mary Barra 19 Beth Mooney 30 Chairman, CEO | General Motors Co. | Detroit Chairman, CEO | KeyCorp | Cleveland

Akio Toyoda 19 Michael Symon 31 CEO | Toyota Motor Corp. | Toyota City, Japan Celebrity chef | Cleveland

Sergey Brin 20 Joe Kanfer 32 President | Alphabet Inc. | Mountain View, Calif. CEO, chairman | GOJO Industries | Akron, Ohio

4 Jodi Berg 32 Dr. John Noseworthy 44 President, CEO | Vitamix | Cleveland CEO | Mayo Clinic | Rochester, Minn.

Judith Faulkner 45 CEO | Epic Systems Inc. | Verona, Wis.

Larry Bell 34 Founder | Bell’s Brewery Inc. | Galesburg, Mich.

Joe Mansueto 50 Chairman, CEO | Morningstar Inc. | Chicago

5 CONTENT

Arianna Huffington 55 Founder | Huffington Post | New York

Greg Nelson 67 Chairman, CEO | East West Copolymer & Rubber LLC | Baton Rouge, La. Olivia Mitchell 58 Professor | Wharton School of the University of Pennsylvania | Philadelphia

Robin Diamonte 60 Chief Investment Officer | United Technologies | Bruce Halle 68 Farmington, Conn. Founder | Discount Tire/America’s Tire | Scottsdale, Ariz

Phyllis Borzi 62 Assistant Secretary for Employee Benefits Security | U.S. Department of Labor | Washington, D.C.

Laurence D. Fink 63 Kevin Plank 70 Chairman, CEO | BlackRock | New York CEO | Under Armour | Baltimore

John Haugen 71 General manager | 301 Inc. | Minneapolis

Rupal Patel 78 George A. Kalogridis 88 Founder, CEO | VocaliD | Boston President | Walt Disney World Resort | Orlando, Fla.

Roland Swenson 78 Randy Malinoff 89 Co-founder | SXSW | Austin, Texas COO | Wizard World | Los Angeles

Gene Stefanyshyn 79 J. Craig Venter 90 Senior vice president of innovation and Founder, chairman, CEO | racing development | NASCAR | Concord, N.C. J. Craig Venter Institute | La Jolla, Calif.

Gary Kelly 79 Jeanne P. Jackson 91 CEO | Southwest Airlines | Dallas Strategic adviser | Nike Inc. | Beaverton, Ore.

Mark Bertolini 80 Chris Granger 91 Chairman, CEO | Aetna | Hartford, Conn. President | Sacramento Kings | Sacramento, Calif.

Manny Medina 82 Founder | eMerge Americas, Managing partner, Medina Capital | Miami

7 Angela Ahrendts Senior vice president-retail, online stores | Apple Inc. | Cupertino, Calif.

BY ADRIANNA PASQUARELLI

he retail world gave a curious gasp two years T ago when Apple Inc. stretched its long arm to London to pluck Angela Ahrendts from her position as CEO of luxury brand Burberry to become the tech giant’s senior vice president of retail and online stores. A fashion executive and savvy businessperson with a long and storied career at apparel brands including Donna Karan and Liz Claiborne, Ahrendts was credited with using technology COURTESY OF APPLE INC. and digital enhancements to revitalize the tired British brand PHOTO: into a modern luxury must-have during her eight-year reign. become screens and added San Francisco. The site is 100 That Apple noticed Ahrendts’ video-streaming microchips to percent powered by renewable accomplishments was no surprise clothing. energy and includes interactive given the tech brand’s focus on “She understands very well how themed windows, a customer revolutionizing its fleet of more technology can impact different support section lined with living than 400 stores, 265 of which are areas of the business,” said trees, and a backyard gathering in the U.S., to encourage more Carolina Milanesi, a principal place — a forum-type area in-store visits by consumers. analyst at San Jose, Calif.-based that’s open to the public around The problem of merging market research firm Creative the clock and is meant to be a online with brick-and-mortar, Strategies. “She fits in very well destination for both locals and making it a seamless experience [at Apple].” visitors. for all shoppers, regardless Indeed, Ahrendts, who, with “This is more than just a of geography, was one that a compensation surpassing store,” Ahrendts recently said, Ahrendts, the daughter of a $25 million, was one of the noting that her mission is to former model who was raised in highest paid female executives fully integrate the brand’s retail Indiana, explored successfully in the U.S. last year, recently outposts into the fabric of their at Burberry. She famously used unveiled the fruits of her labors communities. “We are not just dozens of iPhones to live stream at Apple. In May, 15 years after evolving our store design, but its the fashion brand’s runway the debut of the first two Apple purpose and greater role in the show in London in 2013, and retail stores, the company community as we educate and upgraded Burberry’s London revealed a new store design at entertain visitors and serve our store with magic mirrors that its Union Square flagship in network of local entrepreneurs.”

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BY JEANINE POGGI

honda Rhimes has redefined gender, sex and S race on television. As creator and showrunner for ABC’s “Scandal” and “Grey’s Anatomy” and executive producer of “How to Get Away With Murder,” “The Catch” and the upcoming “Still Star- Crossed,” Rhimes has truly altered the face of TV. “Scandal” was the first network drama in 40 years to star an African-American woman, her female protagonists are multi-layered characters often in a position of power, and she isn’t afraid to depict sexy romances between genders. Rhimes and her ShondaLand production company have managed to continue to create compelling event TV even as viewers are increasingly watching content on their iPads and phones on their own schedules.

Q: How has your strategy for creating TV hits evolved amid all of the changes in the TV ecosystem? A: I honestly feel like I’ve kept doing things pretty much the same way. The only way I knew how to make a show was to PHOTO: AP make a show that I thought was good and to write something I alive and fresh … I have to Q: Do you have plans to create was excited by. … The secret pretend that no one is watching content outside of TV? sauce of the business that I the show, that there are no A: Absolutely. Network can offer is my creativity and audiences, there are no ratings, television has obviously been in order to keep my creativity I’m just telling a story. very good to me and I love it,

10 but there are a million other ways to tell stories now that are out there that are fascinating and I think monetizable and audiences can get really excited about. They provide an interesting challenge, but also just creatively new ways to be within your fences that you can’t necessarily do on network TV ... the size of a screen, the ability to put out 15 episodes at once, virtual reality, there’s a lot of different things those things offer that just are not offered by watching regular television. But there are a lot of things regular television offers that those things don’t offer. The idea that you can keep a crowd of people together and breathless and then make them all wait another week while they spend the week going, “What do you think is going to happen?” which we all did while watching “The People v. O.J. Simpson,” is still possible.

Q: What’s in store for PHOTO COURTESY OF GROUPM ShondaLand? A: I feel that I am at a crucial after WPP acquired it. With an influx point right now; ShondaLand Brian Lesser of traditional media dollars moving is at a crucial point right now. North American CEO over to the complex digital buying We now have four shows on | GroupM | New York space, he built and led Xaxis toward the air … two of them are not massive growth. And he did all that created by me. ... It has been rian Lesser was only 26 when, while launching a separate entity called really important to find shows as a senior strategist at digital Media Innovation Group, which WPP that feel like our brand, that B agency iXL, he was assigned to describes as a technology development sound like our brand, because help brokerage TD Waterhouse build organization dedicated to media buying I want audiences to continue its first online-trading system. Now, the and optimization. to depend on the fact that if young digital vet, in his early 40s, is North Lesser is now tasked with bringing it is a ShondaLand show they American CEO of WPP’s GroupM, one the larger, established GroupM buying know what they are getting. You of the largest media buying operations in network, which houses media agencies are not going to wonder what the world. Mindshare, MediaCom, MEC, Maxus this is going to be and be really It wasn’t such a sudden leap. After and Essence, as well as Xaxis, into the disappointed because we have working at a few digital startups, he future. No small feat, but no big deal jumped outside the box. … joined digital exchange 24/7 Media. for this overachiever. Did we mention Right now, I am busy exploring He eventually became CEO of WPP’s he has degrees from the University of what that brand can be. It is digital trading desk and programmatic Pennsylvania and Columbia? definitely beyond television. buying hub Xaxis, which absorbed 24/7 — ALEXANDRA BRUELL

11 Indra Nooyi Chairman, CEO | PepsiCo | Purchase, N.Y.

BY E.J. SCHULTZ

ndra Nooyi has led PepsiCo for 10 years, steering the I snacks and beverage giant through a period in which changing consumer tastes have rocked big food companies. She has fiercely advocated for keeping the company’s food and beverage business under one roof, fending off pressure from an activist investor to split in two. Her resolve paid off as the company proved it can successfully manage beverages and snacks together. “There’s nothing broke to fix with PepsiCo today,” Evercore ISI stated in a recent note to investors in May after the activist investor, Trian Fund, sold its stake in PepsiCo. Under Nooyi’s leadership, PepsiCo has funded healthier products such as Naked juice, Sabra hummus and Aquafina

water. She has also green-lighted PHOTO: COURTESY PEPSICO OF ambitious marketing efforts, such as the recent launch of a Goals include conserving global “When you actually ascend state-of-the-art content studio water supplies, creating a diverse to the top, it’s a whole different in New York City. The studio workplace and reducing added ballgame, because you are is pushing the boundaries sugar, sodium and fat across the it,” she said, reflecting on her of advertising, pumping out company’s product line. career path in a video posted branded content while also Nooyi, who was born in India, on Makers.com, which collects pursuing distribution deals with has described her upbringing women’s stories. “Amplify film studios. as strict and rigid. She joined that with the fact that you are Nooyi has broad influence PepsiCo in 1994 as a strategic foreign-born from an emerging over PepsiCo’s internal planner, balancing work and market—diversity has taken on culture. She is the architect of motherhood. She was promoted a richer meaning.” “Performance With Purpose,” to chief financial officer in She added: “Gender diversity which the company describes as 2001 and CEO in 2006. Nooyi has to be embraced as the its “promise to do what’s right routinely appears on Forbes’ only way for a company to be for the business by doing what’s 100 Most Powerful Women list, successful. I don’t think we have right for people and the planet.” ranking 14th this year. a choice.”

12 PHOTO: AP

on which advertisers reach Mark consumers, publishers distribute content and, more importantly, Zuckerberg people connect with family,

PHOTO: COURTESY OF THE WASHINGTON POST Founder, CEO | Facebook | friends and much larger Menlo Park, Calif. networks. His efforts, though, don’t stop Jeff Bezos n Oct. 28, 2003, then- with Facebook. Zuckerberg’s CEO, chairman, founder | Amazon | Seattle 19-year-old Harvard company also owns other O University sophomore popular digital properties eff Bezos dominates the top of most lists Mark Zuckerberg copied including Instagram, WhatsApp — top tech entrepreneur, top innovator in dormitory photo IDs from his and Messenger, each of which J retail, top choice in dining companion to school’s network so he could have a user base close to or more have one meal with, and more. create a website that asked users than 1 billion. The 52-year-old Bezos, who built Amazon from to pick between two photos and Zuckerberg has pushed for a garage startup in 1994 into a retail behemoth now select the one they thought was further innovation, in virtual generating over $100 billion in revenue, has been “hotter.” reality with Oculus Rift, fascinating the world for decades. In addition to The stunt was reported by automated intelligence software, Amazon, which posted record profits during the his school’s newspaper, The live video and 360-degree most recent holiday season and continues to gobble Harvard Crimson, and later photos and videos. up market share from the competition, Bezos depicted in the acclaimed 2010 Zuckerberg and his wife, innovates through Blue Origin, which tests flights movie “The Social Network.” Priscilla Chan, made an into space, and Bezos Expeditions, where he invests Today, Zuckerberg is known unprecedented announcement in groundbreaking new ventures like a cancer not as a college prankster but last year when they said they research firm. as the founder and CEO of would devote 99 percent of their Worth an estimated $57 billion, he’s Facebook, the world’s largest Facebook shares to the cause of experimenting with drone delivery and digital social networking platform, human advancement through entertainment, while also modernizing news media which has also made him one the Chan Zuckerberg Initiative, through his ownership of the Washington Post, of the richest people alive, devoted to areas such as health, which the Albuquerque, N.M., native bought for commanding a net worth of education and energy. It kicked $250 million three years ago. more than $51 billion. off with a $24 million investment Amazon has been called the “Everything Store”; The tech entrepreneur has in Andela, a company that looks Bezos is on his way to becoming the “Everything reshaped a number of different to train software developers in Man.” — ADRIANNA PASQUARELLI landscapes, including the vistas Africa. — GEORGE SLEFO

13 PHOTO: AP

advertisers and media properties NFL and MLB are using it to Evan Spiegel frantic to reach them. offer fans a crowdsourced way Co-founder, CEO | Snapchat | The platform is so attractive to watch a game. And Snapchat Venice, Calif. that Facebook tried to buy it for has persuaded big brands like $3 billion. Spiegel turned the Procter & Gamble, Ford and BY MAUREEN MORRISON offer down. Coca-Cola to buy ads against That now looks like it was the more than nearly 150 napchat CEO Evan a good move: The company’s million people who use the app Spiegel may be a college valuation today exceeds $20 daily. S dropout, but he’s become billion. Why? For one thing, And Snapchat recently one of the world’s youngest Snapchat is expected this year revamped to better show off billionaires and reshaped the to surpass both Twitter and its media partners’ headlines, media business in the process. Pinterest for daily users. give more opportunities to Having studied product It’s also cemented itself as marketers and expand its design at Stanford University, a new type of media platform services for consumers into, Spiegel — with co-founders via Snapchat Discover, which for example, text chats — Bobby Murphy and Reggie has forced media companies to making it a direct competitor Brown — originally developed rethink how to make their work to Facebook Messenger, among Snapchat as a way for people most compelling. Publishers others. to send photos and videos that including BuzzFeed, Vice, Controversies over Spiegel’s disappeared after viewing. But CNN, ESPN and others are college emails, for example, over the last year and a half, using it to publish news tailor- tag along behind him. But Snapchat has expanded itself made for mobile audiences of he’s rewriting the rules of into a must-have for millions of millennials and their younger connecting with consumers, consumers, not to mention the siblings. Sports leagues like the one Snap at a time.

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An Equal Opportunity Employer © 2016 Kelly Services, Inc. 16-0599 as validation of that vision. “Electric cars are just fundamentally better,” said Musk, ever soft-spoken yet self- assured. “I think that’s where the future is going to go, but it’s only going to go there if the big car companies make risky decisions to do electric vehicles.” If Musk speaks of the inherent superiority of electrification as if his company’s survival depends on it, that’s because it does. Tesla doesn’t have a lineup of gasoline-powered pickup trucks to subsidize its battery experiments or even hybrids to hedge its bets. It depends heavily on the perseverance of investors who will put up with its lack of profitability, manufacturing hiccups and disregard for

PHOTO: GLENN TRIEST timelines. And it depends on Musk didn’t have much functionality,” himself, the one-man PR Elon Musk Musk told an audience of both operation who melts hearts and CEO | Tesla Motors | skeptics and believers at last moves markets with his blogs Palo Alto, Calif. year’s Automotive News World and tweets, not to mention his Congress. “We had to show sidelines in space travel and solar BY KRISHNAN M. people that electric cars could energy. ANANTHARAMAN be fast, sexy, handle well, long The question now is whether range and be a great car.” the notorious taskmaster can lon Musk didn’t invent Tesla’s vehicles have mostly make factory machinery move the electric car. He didn’t delivered on that premise, to his whims. Tesla builds some E pioneer any next-gen impressing critics, regulators 50,000 vehicles a year. By 2018, battery technology. He didn’t and customers, who are lining Musk wants to build 10 times as even create Tesla Motors. up to pay $100,000 or more for many, an unprecedented ramp- What he did do was forge the “ludicrous” acceleration, gull- up that will cost his company first functioning marketplace for wing doors, autopilot features billions of dollars. an electric vehicle, in that sweet and one of the auto world’s most It’s not just ambition talking. spot where insatiable demand fashionable badges. It’s economics. Musk and Tesla meets a six-figure price. And he Yet the vehicles are just part need that scale to be able to offer did so by making the cars not of a broader Musk vision that EVs, like the coming Model 3, at just sophisticated and efficient, calls for reorienting the entire prices ordinary people can afford. but irresistible to the status- automotive market away from In the process, some of the conscious buyer. fossil fuels. That’s why he sophistication and sex appeal “People thought electric wants the industry to embrace that got Tesla this far may be cars were like a golf cart: they electrification, and sees every lost. But if Musk can’t meet that were slow, didn’t maneuver new report about a competitor’s industrial challenge, his entire well, had low range, were ugly, “Tesla fighter” not as a threat but vision will be at risk.

16 PHOTO: GLENN TRIEST

but also using his enforcement it go far enough? That will not Mark Rosekind powers to compel automakers be answered for some years Administrator | National to change their internal systems probably. Highway Traffic Safety and attitudes toward safety. And Administration | he has embraced demands for Q: Will the changes you’ve put Washington, D.C. reforms within the agency itself. in place stick after you leave? A: That’s the critical question BY RYAN BEENE Q: Is the recall system broken? right now. We’ve already A: It’s been broken for a long acknowledged that these are ark Rosekind is an time. You can put Band-Aids cultural mindset changes. We expert on human on or you can step back and say, can’t get it all done in two years, M fatigue. And he’s tired. “How do you fix this system?” but let’s get stakes in the ground Tired of watching the auto A lot of times the reactive part and set the path. I think the industry lurch from recall to gets it fixed for the short term, critical part now is getting those recall, and crisis to crisis, while but when you haven’t fixed the stakes really deep. the creaking gears of government whole system, or you haven’t regulation try to keep up. fixed the major underlying Q: Defects are a small part of His appointment in foundational pieces, then what our safety problem — 94 percent December 2014 to head the happens? It just erupts again. of traffic deaths are caused by National Highway Traffic What keeps me up at night is human error. Are autonomous Safety Administration filled a knowing there’s stuff in the vehicles the answer? vacancy that had been open for system that’s been around for A: I think they’re a big part of a year — the very year that a years that could erupt. getting to zero. We have to make faulty ignition switch convulsed sure the conversation is reality- General Motors Co. and led to Q: So how do you fix it? based. I don’t care how great the record recall numbers — leaving A: What we have done is try technology is. If it were available Rosekind just two years in his to focus on the structure, the tomorrow, it could take 20 or term to try to effect meaningful people and the processes. We’ve 30 years to have it penetrate the change. tried to make some fundamental fleet. And so humans and that 94 So he has pursued that mission differences and changes in how percent human-factors element tirelessly, doling out tough [NHTSA’s] Office of Defect of crashes could all be on the road penalties for safety violations Investigations does its job. Will for decades.

17 COURTESY AUTOMOTIVE NEWS PHOTO:

them to millions of images in its rendering of images — such Jen-Hsun memory, which is continually as 3-D navigation maps and updated through countless such cameras — Huang spotted a Huang encounters. The idea is for the new market. Tesla, Audi and CEO | Nvidia Corp. | robotic mind of an automobile others now use Nvidia chips to Santa Clara, Calif. to improve its driving generate high-quality graphics capabilities over time, the same for their instrument panels. BY DAVID SEDGWICK way humans do. And 50 automakers, suppliers, Huang may someday become software developers and research en-Hsun Huang has a household name in the auto institutions are testing Nvidia’s figured out how to industry, but he’s already a Drive PX computer in their self- J harness computer celebrity in gaming circles. driving vehicles. games — or more precisely, the Following a stint as a Huang’s appearances at computer chips that power them microprocessor designer at the annual CES show in Las — to pilot driverless cars. Advanced Micro Devices Inc., Vegas, and at Nvidia’s own Huang’s company has Huang co-founded Nvidia on his developer conferences, have developed a shoebox-sized 30th birthday in 1993. And that’s become mandatory events for supercomputer, dubbed when he had his great insight. automotive journalists. And his Drive PX 2, which provides Huang recognized that customers are treating him as the processing power for test gamers would pay handsome an equal. vehicles at Audi, Mercedes- prices for graphical processing When Audi CEO Rupert Benz, Ford and Toyota. units, or GPUs, that produced Stadler showcased a self-driving With the calculating power cutting-edge images. Microsoft’s A7 sedan at the 2014 CES show of 150 MacBook Pro laptops, Xbox controllers, for example, in Las Vegas, he invited Huang the PX 2 learns to identify use Nvidia chips. onstage to share the applause. previously unseen obstacles As automakers developed In an industry where by uploading them to a central more features that required suppliers rarely share the computer, which compares high-speed processing and limelight, that’s high praise.

18 PHOTO: GENERAL MOTORS Mary Barra Chairman, CEO | General Motors | Detroit COURTESY AUTOMOTIVE NEWS ary Barra became an overnight media

sensation when she was named the first PHOTO: M woman CEO of an automaker, shattering the glass ceiling in the ultimate old boys’ network. founded to slashing new-vehicle But the spotlight switched to searing a few months Akio Toyoda CO2 emissions 90 percent by later, as Barra was chastised in congressional hearings CEO | Toyota Motor Corp. | 2050, all but eliminating the and parodied on “Saturday Night Live” over GM’s Toyota City, Japan traditional combustion engine. response to a major safety defect that would be linked Instead, Toyota is pioneering to at least 124 deaths. kio Toyoda, a car- next-generation fuels such as Barra’s baptism by fire fast became the stuff of auto guy CEO equally at hydrogen. industry lore. The career engineer and GM lifer got A home in a racing suit “We need to show the high marks for her transparency and swift response or a business suit, revived the strength of will to forge new to the safety crisis. And she used it as a spark to world’s largest automaker during roads so that we can continue jumpstart a much-needed cultural transformation. one of its darkest hours. Now taking on challenges for the “This is not just another business crisis for GM,” he is reinventing it for a bold, future, to build ever-better cars she said in June 2014 to nearly 1,000 employees who disruptive future. and develop an ever-stronger had gathered to hear the results of an unflinching The makeover he is global team,” Toyoda told the outside report that laid bare GM’s dysfunction in undertaking will sharpen media at a fiscal year-end news painful detail. “I never want to put this behind us.” Toyota’s game in everything from conference in Tokyo. Barra and her team bounced back from that lost manufacturing and engineering When Toyoda took the year in 2015 to post GM’s biggest corporate profits to design and human resources. wheel in 2009, his family’s ever. The company has been churning out a growing But the biggest transformation company was reeling from list of hit vehicles, and its quality and reliability centers around his ambitions its first operating loss in 70 ratings routinely rival those of Honda and Toyota. to build a leader in artificial years. It was then slammed by Now, having exorcised some of the demons from intelligence, advanced robotics, a safety recall crisis related to GM’s past, Barra has moved on to securing its future. autonomous driving, safety and unintended acceleration, and The company has moved more quickly than most zero-emissions cars. after that by Japan’s 2011 killer automakers to position itself for the fast-changing Indeed, Toyoda invested earthquake-tsunami. ways in which people get around, striking deals $1 billion in a Silicon Valley But Toyoda powered Toyota with autonomous-driving startups and mobility startup to make Toyota as back to record profits. And with companies such as Lyft. big a player in the software of the company’s R&D budget “We’re not sitting there saying, ‘Oh, what are we tomorrow’s cars as it is in the now brimming, Toyoda and going to do?’” Barra told Automotive News in 2015. hardware of today’s. Toyota are well positioned “We’re saying, ‘Yeah, it’s changing, and we’re going to He also committed the to deliver on the boss’ lofty be a part of it.’” — MIKE COLIAS company his grandfather targets. — HANS GREIMEL

19 testing on public roads in places like Mountain View, Calif., and Austin, Texas. The work is a departure from Google’s history of internet- based innovations, but it is a business direction that is “close to my heart,” the Russian-born Brin said in a report to investors. “Over a million auto fatalities per year worldwide make this a risk worth taking.” Last year Google recruited auto industry veteran John Krafcik to lead the project, and it’s increasingly seeking partnerships with traditional auto manufacturers and suppliers to advance its vision. Meanwhile, automakers such as Daimler, Volvo and Toyota

COURTESY AUTOMOTIVE NEWS also are aggressively pursuing autonomous vehicle technology,

PHOTO: inspired or at least catalyzed by Google’s groundbreaking work. project, just 7 years old, is busily But there’s one key disconnect. Sergey Brin swinging its shovel in a sandbox The automakers aren’t President | Alphabet Inc. | built by century-old auto giants immediately concerned with Mountain View, Calif. like Daimler AG and Ford Motor eliminating the role of the driver. Co. But already, Brin and his Google is. It says it isn’t confident BY KRISHNAN M. quest to create a highly mobile enough about the back-and-forth ANANTHARAMAN society free of the threat of deadly handoff of controls between accidents have begun to redefine drivers and computer. So rather ill Sergey Brin, expectations of the modern than attempting to debug the co-founder of what’s automobile. human, Google decided to go for W now called Alphabet The parent company formerly a fully independent driver-free Inc., ever deserve a place in the known as Google began working car. annals of automotive history on self-driving cars in 2009 A moonshot for sure, but alongside, say, Karl Benz or under a division called Google X perhaps no more ambitious than Henry Ford? that would serve as a laboratory building a one-line portal into That depends on what sort and launching pad for what it every single thing on the internet. of vehicles will be on the road calls “moonshot” ideas — huge “This project and others like decades from now — and problems requiring a mix of it are very challenging, and the whether humans will be driving breakthrough technology, big outcomes are far from certain,” them. money and radical thinking. Brin told his investors. “But just The fact that we don’t Under the direction of experts in like when we started nearly two know yet is evidence of Brin’s artificial intelligence, the division decades ago, it is possible to improbable effect on the auto has since developed sophisticated create the technology that allows industry. software and several generations people to lead healthier, happier The Google self-driving car of vehicle prototypes that it’s lives.”

20 PHOTO: DAN TAYLOR/HEISENBERG MEDIA

factory and found the fuss and needs to own a car? Travis Kalanick detail of it overwhelming. Certainly, Uber’s not for CEO | Uber | San Francisco But what Kalanick has done is everyone. And the wait for a shake the fundamental premise ride on New Year’s Eve can ome people in the auto of the auto industry: that be dreadful. Kalanick, now industry cause a stir. everybody needs to own a car. personally worth an estimated S Travis Kalanick has And he has done it through a $6 billion, also has his hands full caused a riot. smartphone app. with legal challenges — from And it’s hard to explain It works like this: You take drivers who don’t understand exactly why. out your smartphone. You open why they shouldn’t accept a tip, On paper, the co-founder/ the Uber app. You tell the app to critics who feel Uber isn’t CEO of ride-share sensation that you’re at your house and paying enough attention to Uber looks almost tangential you’d like to go to Rick’s Cafe. personal safety issues, to cab to the car business. He doesn’t The app tells you that it will drivers around the world who retail cars. He doesn’t wholesale, cost you $9 – no tax, no tip – claim Uber is out to destroy finance or design them. And he and that an Uber driver will their way of life. certainly doesn’t manufacture be there to pick you up in 12 But the idea has opened them or have any interest in minutes. the door to revolutionary doing so. Why is that a riot? thinking in ways that mass In fact, in June, the 38-year- Because if getting around transit never did, especially in old California entrepreneur town can be that easy and urban environments, where a admitted to an audience at a tech that affordable, with no gas growing portion of the planet’s conference in Berlin that he had purchases, no parking fees and population now lives. recently toured a German auto no car maintenance issues, who — LINDSAY CHAPPELL

21 CHICAGO BUSINESSᮋ Theo Epstein President of Baseball Operations | Chicago Cubs | Chicago

BY DANNY ECKER

n 2004, Theo Epstein did what previous general I managers of the Boston Red Sox had failed — often miserably and spectacularly — to do for 86 years: He led the team to a World Series championship. He did it by using a simple yet highly disruptive strategy. He stripped away subjectivity in analyzing players and let the numbers be his primary guide. While Oakland Athletics General Manager Billy Beane is famously credited in “Moneyball” with revolutionizing how teams evaluate talent, it was Epstein — then a 30-year-old with a degree in American studies from Yale University and a law degree from the University of San Diego — who first used the new brand of advanced statistical analytics to win a title. Now he’s on the verge of doing it again in Chicago. The president of baseball operations for the Cubs has turned the team from a top-heavy collection of ugly contracts and amateurish on-field play into one of the game’s model franchises and a World Series favorite in just four years. His eye for market inefficiencies and talent both on and off the field has made him the most valuable baseball executive

of this generation and likely a PHOTO: AP

22 future member of baseball’s Hall of Fame. But for all of the attention paid to his disruptive roster- building tactics—stockpiling talent through the draft, getting bloated contracts off the books and “paying for future performance, not past performance,” as he likes to say — his calling card has been culture change. The Brookline, Mass., native literally rewrote the script for the Cubs by codifying “The Cubs Way,” a 300-page manual on baseball philosophy for every player, from the lowest- level prospects to all-stars. No detail was too trivial. His instruction book, for instance, includes specifics of how to round first base. Getting everyone in the organization on the same page was a lasting lesson from

Epstein’s Red Sox days, which PHOTO: CRAIN COMMUNICATIONS INC. ended with a late-season collapse in 2011. “Some of partner, but for hungry masses everywhere. the worst decisions we made Matt Maloney Others were skeptical. GrubHub, which were in the face of these poor CEO | GrubHub | Chicago takes a percentage of each order made organizational beliefs,” Epstein via its site, initially was rejected from the said of his final seasons in BY JOHN PLETZ annual startup competition at Chicago’s Boston while speaking at a Booth School of Businessin 2006. It went Crain’s Chicago Business event att Maloney was writing on to win, however. in 2012. “I didn’t learn quickly software at a Chicago dot-com He’s prevailed again and again. Locked enough that winning and some M in the early 2000s when he in a land-grab battle with New York-based success raises the expectations got tired of ordering from the same pizza Seamless, Maloney took over his older across the board. If you don’t place every night. So he and fellow coder and bigger rival in 2013 and then took the manage it, it tends to grow out Mike Evans started GrubHub, a website combined company public a year later. of control.” to search for restaurants and order food. He’s not done yet. Already in more If Epstein thinks “I remember going through a phone than 1,000 U.S. cities, GrubHub has expectations got too high book trying to find the pizza shop that branched out into online delivery, too, in Fenway Park, just wait to would deliver to me,” he says. “It was so taking on the likes of Amazon and Uber, see what will happen in annoying.” though they dwarf his company. He vows Wrigley Field if he manages to Maloney, 40, a Michigan native with an to prove skeptics wrong once again. “In end the Cubs’ unprecedented MBA and a master’s degree in computer two or three years,” he says, “I wouldn’t be drought by bringing home science from the University of Chicago, shocked if GrubHub was doing delivery their first World Series title in was certain his creation filled an unmet for most of the restaurants who do 108 years. need not only for him and his business delivery now.”

23 CHICAGO BUSINESSᮋ Brad Keywell and Eric Lef kofsky Co-founders | Uptake | Chicago

BY JOHN PLETZ

rad Keywell and Eric Lefkofsky didn’t invent B the internet, but they’ve used it to reinvent a lot of old- school businesses: retailing, advertising, printing and trucking. The two University of Michigan Law School grads, who Eric Lefkofsky

grew up near Detroit, moved to PHOTO: ERIK UNGER Chicago in the early 1990s to become nationally known tech real estate billionaire Sam entrepreneurs. They were the Zell (who graduated from the behind-the-scenes guys who U-M a generation earlier), is helped found what was then a master sales closer and idea billed as America’s fastest- machine. Lefkofsky, also 46, is a growing tech company ever, bulldog who once described his Groupon, which hit $1 billion approach this way: “I can only

in revenue in just over three RAIN CHICAGO BUSINESS learn by doing something and C years. ICYMI, the online-deal failing. You can’t tell me to avoid company fronted by CEO a pothole; I have to drive it.” Andrew Mason, created a brand- They’ve already moved on to new tool for small businesses their next big things. Keywell is

to drum up customers with PHOTO: COURTESY CEO of Uptake Technologies, emailed discounts and went on to Brad Keywell a big-data startup in Chicago become an early leader in mobile that’s helping Caterpillar commerce. billion and employed more and other big companies That’s not all. In addition to than 13,500 at the end of 2015. reinvent their businesses using taking Groupon public in 2011— Another venture, Mediaocean, Internet of Things sensors after brashly turning down a $6 an advertising-tech services and predictive analytics. The billion offer from Google, a move firm based in New York, sold a Chicago-based company has they probably regretted after its majority stake to Vista Equity been valued at more than $1 stock market stumbles—Keywell Partners that valued it at $720 billion by investors. Along and Lefkofsky IPOd two other million. with co-founding Uptake, companies, printing middleman Their $200 million Lefkofsky, who was Groupon InnerWorkings and Echo Global Lightbank venture capital fund, CEO from 2013 to 2015 and Logistics. Combined, the three meantime, has helped launch now is chairman, is working on Chicago-based businesses more than 70 companies. a startup that’s still in stealth now are worth more than $3 Keywell, 46, a protégé of mode.

24 myself as someone who’s fixed on a certain type.

Q: You’ve used this term lately: “actionable idealism.” Can you talk a little bit about what you mean by that? A: That describes how our studio is trying to tackle some of the most difficult problems on the globe, whether it’s climate change or inequity between communities or urban decay. We like to zoom out and try to see how design can be part of that dialogue. But then we like to focus in on something that can be achieved and try to help get that first step going. So in a way, it’s kind of a global

PHOTO: COURTESY STUDIO GANG ARCHITECTS attitude, but also an idea about how important it is to make high-rise commissions you’ve incremental success and action. Jeanne Gang won since then? Founding principal | Studio A: What it really did, because Q: What kinds of advances in Gang Architects | Chicago of the scale of that project, was architecture do you think we’ll it helped eliminate doubts in see over the next 100 years? BY ALBY GALLUN anyone’s mind that we can A: I think you are going to see handle a large project. Because buildings where every material rchitect Jeanne Gang at 1.5 million square feet, it’s used inside will be known and became the talk of really a very large size, and it was labeled, just like you do for A the design world a great success and is extremely food right now. We’ll see much when her first skyscraper, the popular. more organic products and daring 82-story Aqua Tower things that are less harmful in downtown Chicago, was Q: You’ve designed to the environment than completed in 2010. They’re skyscrapers, museums, theaters the current materials. We’ll still talking about the 52-year- and even a police station. Is build buildings that are more old MacArthur “genius grant” there any type of project that flexible and usable for multiple recipient as she’s taken on a you haven’t designed that different things. And I think string of high-profile projects, you have a burning ambition you’ll also see big advances including the U.S. Embassy to tackle by the end of your with technology — in other in Brazil and Vista Tower, a career? words, designing and building 95-story follow-up to Aqua, just A: I am interested in projects buildings using virtual reality a couple of blocks away. where we can help the and robotics. Think about a organization (the client) kind of bone in the human body, how Q: The Aqua was a get into new territory, where an it grows and strengthens as you breakthrough project for you. organization has a goal and the age. There’s probably a way to Can you talk a little bit about architecture can help get them make buildings self-repair and what you’ve learned from that there. It could be anything, even strengthen and grow in job that has helped you in the honestly. I really don’t see the future.

25 CHICAGO BUSINESSᮋ

standbys like Maybelline to high- end names like Chanel. Archrival Sephora’s stores, by comparison, can seem a bit cramped. Dillon, 54, who grew up on Chicago’s South Side and was the first in her family to attend college, gained expertise at PepsiCo’s Quaker Foods and then McDonald’s, where she oversaw a $2 billion advertising budget as global CMO. From there, she joined U.S. Cellular as CEO in 2010. When she arrived at Ulta, Dillon temporarily pumped the brakes on store expansion to firm up e-commerce, supply chain and brand positioning. Thanks to her investments, Ulta’s online revenue has increased by almost 50 percent year-over-year, to $221 million in 2015. The

PHOTO: COURTESY ULTA BEAUTY company also began national television advertising for the first more than quadrupled revenue time because, as Dillon jokes, she Mary Dillon to $3.92 billion in fiscal 2015. was sick of hearing customers call CEO | Ulta Beauty | It’s also tripled its store count to the company “Ultra.” Bolingbrook, Ill. nearly 900, with plans to open Other retailers want a bigger another 100 locations before piece of the beauty market. BY BRIGID SWEENEY year’s end. Macy’s purchased Bluemercury, To some degree, Ulta benefits a high-end beauty boutique, ary Dillon admits from simply being in the right two years ago to lift cosmetics she wasn’t a regular place. Even as clothing sales have sales, while J.C. Penney has M Ulta Beauty shopper slowed, sending retailers from added mini-Sephoras to its before she took over as its CEO Gap to Macy’s into a tailspin department stores. Kohl’s and in 2013. These days, she tries on and Aeropostale and American even Walgreens, meantime, are mascaras and lip glosses like a Apparel into bankruptcy, women dolling up their personal care fashionista. But Dillon could go still shell out for personal care offerings. with a different product every items, whether an $18 concealer For now, though, Dillon’s day and still not come close to or a $100 anti-aging serum. But front-of-the-pack position looks running through Ulta’s ever- Ulta owes its outsize growth to secure. Already the country’s growing inventory of more than Dillon’s careful strategy. She’s biggest specialty beauty retailer 500 cosmetics, fragrance and hair continued to add trendy new by sales, Ulta expects its care brands. product lines to Ulta’s shelves e-commerce revenue to rise by A marketing veteran, Dillon and has positioned the stores another 40 percent this year. runs one of America’s hottest as big, wide-open cosmetic The company is again pushing retailers of the 21st century. Disneylands, full of unexpected full-steam ahead with bricks-and- Since going public in 2007, the discoveries and treats at every mortar locations, aiming to have suburban Chicago company has price point, from mass-market 1,200 stores by 2018.

26 RAIN CHICAGO BUSINESS C PHOTO: COURTESY Michael Ferro Chairman | Tronc | Chicago

ichael Ferro, by his own estimation M at least, is the entrepreneur who will save print journalism. The chairman and biggest shareholder of Tronc F/K/A Tribune Publishing has proven he can make money in tech, but his efforts in media,

PHOTO: AP however, are a work in progress at best. Before spending $44 find such silliness as “Life Skill: How to million early this year for a 16.5 Tavi Gevinson Help Someone Who is Suddenly Barfing in percent stake in Chicago-based Founder | Style Rookie | New York Public” and super-serious think pieces on Tronc, which publishes the Los how it feels to be a black teenager in post- Angeles Times and Chicago BY CASSIE WALKER BURKE Trayvon Martin America. That virtue has Tribune among other daily carried the brand (and the Rookie editor- newspapers, he led a group of t age 11, she began blogging in in-chief) beyond the internet and into book elite wealthy Chicago investors her suburban Chicago bedroom; publishing and reader events sponsored by in acquiring the Chicago Sun- A by 13, she was a darling of the the likes of Urban Outfitters. Times. Under his direction, the New York fashion scene. Like any teenager, It seems wherever Gevinson goes, her paper tried new features and Tavi Gevinson’s interests have zigged and teenage fan club and the advertisers that websites. But one by one these zagged with each passing season, but she’s covet them follow. The now-20-year-old experiments were abandoned, the rare wunderkind to spin her dalliances has appeared in Vanity Fair and fashion and print circulation and ad into publishing gold, bucking some magazines the world over, was plucked revenue continue to slide. He generally depressing media trends along to be the face of makeup brand Clinique sees salvation in expanding the the way. and is styled by Chanel for high-wattage Chicago-based company’s reach Rookie, her online magazine for teens, events she recaps for her 462,000 by publishing 2,000 videos a hit the million-visitor mark six days Instagram followers. After wrapping up day, using artificial intelligence after its launch in 2012. A daily whirl of a 20-week run starring in “The Crucible” to pump them out cheaply. He’s teenage essays, collage art and celebrity on Broadway, Gevinson announced roles rejected buyouts, including an advice columns (the “Ask a Grown Man” in another Broadway play (Chekhov, offer from Gannett, the nation’s series has featured comedian Bill Hader, naturally) an indie movieand a weekly largest newspaper company, actor Paul Rudd and the band Vampire Rookie e-newsletter. What’s next? It could saying investors will be better off Weekend), Rookie still nails authenticity be anything. But one thing’s for sure: Her under his management. four years later. Where else would you also adventures are content. — LYNNE MAREK

27 CLEVELAND BUSINESS

advance – the Cleveland Clinic’s international reputation and status? A: When we put an organization in say, Abu Dhabi, we have to have Cleveland Clinic DNA there, so a third of the doctors and the leadership of all of the departments come from Cleveland. We do not think that we can have a facility that’s distanced from us that doesn’t have our DNA.

Q: What should health care leaders keep in mind as the industry continues to evolve going forward? A: Health care right now is undergoing the biggest change it has in a century. And it affects 100 percent of the people. And we know that we have got to

PHOTO: THE CLEVELAND CLINIC CENTER FOR MEDICAL ART PHOTOGRAPHY& make health care delivery more efficient. And there’s only two outcomes, but their emotional ways to do that. One is to make Dr. Toby and physical experience. the delivery of care for the sick Cosgrove has led the clinic more efficient, and secondly, Cosgrove through 12 years and counting keeping people well so they President, CEO | Cleveland of impressive growth. The don’t have to be sick. Clinic | Cleveland emphasis on patients, Cosgrove said, has significantly changed Q: How would you describe the BY LYDIA COUTRE the organization. state of the health care industry as it stands today? s Cleveland Clinic Q: What do you consider the A: I would say that it is in huge president and CEO, biggest differences between the turmoil. … We’re being paid A one of Dr. Delos Cleveland Clinic of 2016 and for delivering value for health “Toby” Cosgrove’s first what it was and what it looked care as opposed to looking at priorities was to unite everyone like 10 years ago? volume, and that shift is a huge, around one theme: patients A: Well, it’s about 2.5 times huge change. And that is driving first. bigger (in terms of) revenues. all kinds of resulting activity “That was the only reason It has twice as many doctors. and consolidation, and doctors we had a job,” Cosgrove said. It has gone from essentially a being employed and different From that mantra, holding company of community players entering into health which remains today, hospitals to an integrated health care delivery. ... So we’re seeing came everything else: a care delivery system. It has enormous changes going on, and reorganization built around gone global in terms of having that’s not going to end quickly. patients, initiatives to keep facilities in Canada, Abu Dhabi That’s going to be a 15-year — them well, a focus on patient and soon to be London. at least — journey. We’re at six experience — not just clinical Q: How do you maintain – and already.

28 LeBron James NBA superstar/entrepreneur | Cleveland Cavaliers | Cleveland

BY KEVIN KLEPS

hen it was over, after he had led the W Cleveland Cavaliers to their first championship and ended Cleveland’s 51½-year major professional sports title drought, LeBron James fell to the court and covered his face as he wept. It was a rare vulnerable moment for an athlete who is now 13 seasons into what might be the most superhuman stretch in NBA history. James is a 12-time All-Star and four-time league MVP who has yet to suffer a significant injury, despite playing almost as many combined regular-season and playoff minutes as Michael Jordan. His off-court empire — with $54 million in estimated annual endorsements, according PHOTO: ZUMA PRESS to Forbes, and a lifetime deal with Nike that could top $1 billion — his career, and it was an emphatic of 146 major professional sports is every bit as strong. response to the verbal shots seasons without a championship. Still, what James accomplished several Warriors players had His SpringHill Entertainment in the 2016 NBA Finals was taken at him on social media and has a deal with Warner Bros. probably his best act yet. in interviews prior to Game 5. Klutch Sports, the agency owned James’ Cavaliers became “I’m coming home with what I by James’ friend and business the first team to rally from a said I was going to do,” he told the partner Rich Paul, is representing 3-1 deficit in the Finals, and media after Game 7. Ben Simmons, the No. 1 overall they did so against a Golden Getting there was an often- pick in the 2016 NBA draft. State Warriors team that set rocky process following James’ In the summer of 2017, when an all-time wins record in the infamous decision to leave the the NBA salary cap could reach regular season. In the Cavs’ Cavs for the Miami Heat in the $110 million or more, James 93-89 win over the Warriors summer of 2010. would be eligible to sign the on June 19, he recorded just the Six years later, James is back on most lucrative contract in league third triple-double in Game 7 top of the basketball world, the history — a five-year deal worth of the Finals. The achievement unquestioned best player in the more than $200 million. marked the conclusion of one of game and the hometown hero At that point, he’ll be all of 32 the best three-game stretches of who ended Cleveland’s streak years old.

29 CLEVELAND BUSINESS

CEO of a bank just shy, at the time, of $86 billion in total assets. It wasn’t just a personal milestone for her, but a landmark moment for all women in business. “I certainly was proud of the accomplishment,” Mooney told Crain’s in 2012, “I was proud to be the first. (But) a year ago, if you’d said, ‘You’re going to be on the Top 100 (World’s Most Powerful Women) Forbes list’ ... it wouldn’t have crossed my mind.” “I care about doing it well for women,” she added. “I’m keenly aware of my place in history. By the time I retire, I’d like to see (my being the first woman) be a footnote, not the headline.” KeyBank was performing well when Mooney came on board, but she took the company to the next level, securing it a reputation among the country’s best-per-

PHOTO: COURTESY KEYCORP forming regional banks with a brand well-known across the American bank in May 2011. Midwest. Beth Mooney A Michigan native, Mooney Organic and strong balance Chairman, CEO | KeyCorp | took her first job in banking sheets have made investors Cleveland nearly 40 years ago in Texas as a happy, steadily pushing the secretary with First City National company’s stock value to some of BY JEREMY NOBILE Bank of Houston. Her resume its highest levels under Mooney includes time at a variety of U.S. since share prices plummeted in nder Beth Mooney’s banks, working positions in retail 2008. watch, KeyCorp banking, commercial lending Those achievements alone U is soaring to and real estate financing. Some have garnered Mooney a slew unprecedented heights. of her first professional work in of accolades, including being As chairman and CEO of Ohio came with a stint at Bank named the most powerful KeyCorp, the parent company One as the company’s regional woman in banking for three years of Cleveland’s KeyBank, president for Akron and Dayton, running by American Banker. Mooney has cemented a spot a role she held in 1999-2000. And that was all before last among banking’s most powerful A few more jobs followed October, when the company and influential executives. before she landed at KeyCorp unveiled plans to acquire New She’s in some elite company in 2006 as head of Key Com- York-based First Niagara Finan- there, blazing a trail for women munity Banking, charged with cial Group. The merger, slated to — in an industry still largely overseeing a variety of business close in the third quarter of this dominated by white men in the lines. Four years later, she joined year, will establish a bank with C-suite — by becoming the the board of directors. The very more than $135 billion in total first female leader of a major next year, Mooney was appointed assets operating in 15 states.

30 PHOTO: COURTESY MICHAEL SYMON RESTAURANTS

entertainment district on East 4th Street. The Michael Symon secret? Incorporating Bertman’s ballpark mustard Celebrity chef | Cleveland — the lifeblood of many Clevelanders — into the barbecue sauce. If you’re doubtful of Symon’s ichael Symon first dazzled diners legend in Cleveland, take note: The first lunch about 20 years ago when he unveiled service at Mabel’s saw a line that stretched out the M his original Lola restaurant in door and down East 4th. Cleveland’s Tremont neighborhood. Since then, All the while, the chef hasn’t ignored his roots. the Iron Chef and now co-host of the popular “I really enjoy splitting my time between the television show “The Chew” has become one restaurants and TV and mentoring young chefs,” of the most powerful individuals in the food Symon told Crain’s Cleveland Business in 2015. industry, recently landing on Restaurant Business “I love watching our employees grow within our magazine’s Power 20 list. company. You’re really only as good as the people Earlier this year, Symon launched his latest who come from your family tree.” venture, Mabel’s BBQ , in Cleveland’s popular — TIMOTHY MAGAW

31 CLEVELAND BUSINESS

and a favorite of garages and Joe Kanfer factories across the country. CEO, chairman | GOJO But Kanfer made it so much Industries | Akron, Ohio more. Today, GOJO has largely created a whole new category, oe Kanfer took a hand sanitizers, and is a leader nice little company in the field with products such J built on the ideas and as Purrell, which is used by hard work of his aunt and hundreds of millions of people uncle and turned it into a around the world. worldwide brand and industry Kanfer’s also made a powerhouse. difference personally — That company is Akron, supporting a plethora of Ohio-based GOJO Industries, community efforts both at which Kanfer began running 45 home and in Israel. Today, years ago at age 24. It was born GOJO is also a leader in from his aunt and uncle Goldie sustainability and has pledged and Jerry Lippman’s idea to to reduce its own chemical make tough hand soap that footprint by half over the next people with dirty jobs could few years.

PHOTO: COURTESY INDUSTRIES GOJO use at work. It was a success — — DAN SHINGLER

highlights its founder’s passion Jodi Berg in that area. The company’s President, CEO | Vitamix | current vision, as Berg Cleveland describes it — to “improve the vitality of people’s lives itamix has grown and liberate the world from rapidly in recent years conventional food and beverage V under the leadership preparation boundaries” — of Jodi Berg. makes it clear she too carries The family-owned company that value close to heart. makes high-performance Berg, the great- blenders for commercial and granddaughter of Vitamix’s home use that can make more founder, William Grover than just smoothies — a Barnard, worked in a variety of fact the company is quick to roles for the company before proffer. Its products can also heading off to college. When be used to make everything she rejoined the company in from dough to baby food to 1997, she was in charge of soup. its international expansion,

One factor driving the another important component PHOTO: COURTESY VITAMIX growth of the blender maker is in Vitamix’s sales growth in a trend toward healthy eating recent years. and whole foods. Health and Berg took on the role of wellness have long been part of president in 2009 and added nearly 100-year-old company’s the title of CEO in 2011. mission, and the company often — RACHEL ABBEY MCCAFFERTY

32 AWpage_new-awpagead.qxd 8/22/2016 1:33 PM Page 1 Mackinac Brewing Co., pushed Larry Bell for state legislation to allow Founder | Bell’s Brewery Inc. | brewpubs to sell beer by the Galesburg, Mich. glass and for a tax break for small brewers. BY DUSTIN WALSH Despite pushback from wholesalers, Bell was successful, ichigan’s craft and a series of bills passed in brewing industry late 1992 that gave way for M owes its existence, Michigan’s plunge into the craft and prominence, to one man — brewing market. Larry Bell. Bell opened his Eccentric The founder and proprietor Cafe brewpub in 1993. of Bell’s Brewery Inc. is known “You really see the explosion as the godfather of Michigan in Michigan for brewpubs and brewing, and for good reason. small brewers after they allowed When Bell opened a us to sell beer by the glass,” Bell home brewing supply store, said. “It was really a revolution. Kalamazoo Brewing Co., in I don’t think drinkers today 1983, the plan was always to remember it was a revolution, bring craft beer to the masses. but we worked hard for it, and “The (store) was just a front I’m proud of what we’ve done.” to get the brewery up and Bell’s has since grown to coming and so I could buy the sell more than 318,000 barrels PHOTO: AP supplies wholesale,” Bell said. in 2014, according to the By 1985, Bell brewed his Boulder, Colo.-based Brewers But Bell warns that the first commercial beer — in Association, and is now the craft beer industry isn’t what a 15-gallon soup pot. Bell seventh-largest craft brewer and it used to be and is faced with produced 31 gallons in 1986 12th-largest overall brewer in increasing competition from and self-distributed his brew the U.S. mega-brewers and others. through the 1980s. But larger The majority of Bell’s “The alcohol business issues than distribution and production occurs at its continues to evolve,” Bell said. equipment were afoot. Michigan brewhouse in Michigan’s “We’re still challenged by the big regulations crippled Bell’s Comstock Township, which brewers that would like to erode ability to expand. opened in 2002. Kalamazoo some laws to make it harder Because Michigan law Brewing Co. changed its name on us. The industry is pretty prohibited small brewers to Bell’s Brewery Inc. in 2005. crowded, so it’s imperative that from selling beer by the glass, Bell’s has stated plans to we invest in quality. Those that Bell sold beer in plastic 4-liter invest more than $100 million think you can just put beer out containers called “cubitainers” since 2010 to expand its there and get bought out ... those and gave away samples in hopes Comstock brewhouse with the days are coming to a close.” patrons would buy a cubitainer anticipation of brewing more Bell, however, never plans to to go. than 1 million barrels. close the doors of his brewery or Cubitainers “were an awful Largely because of Bell, its legacy. His daughter, Laura, vehicle for the beer,” Bell said. Michigan’s craft brewing is vice president of the company, “But it was all we could get industry is one of the best in the and Bell hopes it remains in the approved and let us get out there nation. Michigan is home to family for generations. and sell our beer.” 205 craft brewers, ranking sixth “I hope Bell’s as a family will Bell, along with Tom Burns, in the U.S., with an economic be around for a very, very long founder of the Detroit & impact of nearly $2 billion. time,” Bell said.

34 Dan Gilbert Founder, chairman | Quicken Loans Inc. and Rock Ventures LLC | Detroit

BY KIRK PINHO

an Gilbert has been a key force in stabilizing D a Detroit city core that had been on life support. Along the way in the last five years, the Quicken Loans Inc. founder and chairman has amassed a real estate portfolio of more than 95 properties in and around downtown Detroit totaling more than 15 million square feet. All told, his investment has topped $2.2 billion, the company says. That’s noteworthy enough, particularly in a city that had been effectively written off the map in real estate circles. But Gilbert’s appetite for

the Big Wins, in real estate and PHOTO: AP in other business ventures, is seemingly insatiable. of Woodward Avenue, the city’s gaming arm of his business He started a hyper-fast north-south spine that runs from empire. Internet company called Rocket downtown north through the And attempted, along with Fiber to provide such services suburbs. Warren Buffett, to buy Internet in downtown, eventually His NBA team, the Cleveland pioneer Yahoo. spreading into other parts of the Cavaliers, this year brought All in the last five years. 143-square-mile city. that Rust Belt city its first major It hasn’t been without He became an investor, along league sports championship in controversy, though. Quicken with a few others, in a $125 more than a half-century. Loans is targeted in a U.S. million funding round in the The deal the private equity Department of Justice lawsuit. manufacturing company that is firm he co-founded, Rockbridge Some have voiced concerns over parent of one of the city’s most Growth Equity LLC, purchasing security cameras Gilbert’s team recognizable firms, Shinola, the Robb Report, which reports installed in downtown. Others luxury watchmaker du jour. on luxury lifestyles through bemoan gentrification and rising He recently unveiled a $1 magazines, websites, smartphone rents, in part linked to Gilbert’s billion-plus plan to bring a Major apps, events and a private club. real estate spending spree. League Soccer team to Detroit. (And, yes, the California-based But without question, He and one of his top company opened a Detroit Gilbert has become Detroit’s lieutenants are leading forces office.) top cheerleader and booster, behind a new light-rail system He bought a downtown and generally backs up his line being built along a small part Detroit casino, part of the enthusiasm with his wallet.

35 PHOTO: KENNY CORBIN

20,000 youths each year through slightly to 1.3 percent from 1.2 Aaron its music education programs percent in 1996, the year Sphinx with urban youth around the U.S. was founded. And the number of Dworkin and a national competition, and Latino musicians holding seats Dean | School of Music, it’s reaching an audience of more had reached 1.6 percent by 2008 Theatre & Dance | University than 2 million people through from 1.2 percent. of Michigan | Ann Arbor, Mich. live and broadcast performances. Last year, Dworkin left Sphinx Where it once would have in the hands of his wife, Afa BY SHERRI WELCH been rare to hear a soloist of Sadykhly Dworkin, president and color performing with a major artistic director. aron Dworkin U.S. orchestra, that’s happening He’s now bringing that same wanted to see more at least 20 times each year, now, focus on minority representation A musicians of color like according to Sphinx. and an entrepreneurial approach himself involved in major music Still, there’s work to be done. to the University of Michigan programs and orchestras, so 20 According to the most recent School of Music, Theatre & years ago, he created a Detroit- data available from the League Dance as its dean. based nonprofit to do just that. of American Orchestras, the Born to a white Irish-Catholic Today, The Sphinx number of black musicians seated mother and a black Jehovah’s Organization is reaching nearly in major orchestras rose only Witness father and adopted by

36 white Jewish parents, Dworkin, 45, will tell you he was destined to make diversity a big part of his life’s work. He began playing the violin at an early age at the 92nd Street Young Men’s and Young Women’s Hebrew Association in New York City and honed his craft at top music schools in Baltimore; Traverse City, Mich.; Cleveland and Pennsylvania on his way to the U-M. In December 2004, The Sphinx Chamber Orchestra, comprised of alumni from the national competition, performed the first-ever ensemble performance by minority musicians at Carnegie Hall. The orchestra went on to perform across the country and internationally, and Sphinx alumni graduated to every top 10 music school nationwide. Sphinx and Dworkin — who received a $500,000 “genius grant” from the Chicago- based John D. and Catherine

T. MacArthur Foundation PHOTO: EDF VENTURES in 2005 and is a past member of the Obama National Arts woman in the field in Michigan. Policy Committee and past Mary Campbell EDF has invested in some 70 presidential nominee to the Co-founder | EDF Ventures | companies over the years, and its house National Council on the Arts Ann Arbor, Mich. on North Main Street in downtown Ann — five years ago convened the Arbor has served as home to various early- first of what has become an n 1987, venture capital wasn’t the stage companies, most notably HandyLab annual international conference household name it is now. But that’s Inc., a medical-device company that in metro Detroit to bring global I when Mary Campbell became a eventually was sold for $275 million. attention to diversity in the pioneer in the sector, both nationally and Six of her companies have had initial performing arts. in Michigan. That year, she co-founded public offerings, and another, Greenplum Last year, Dworkin returned EDF Ventures, a firm based in Ann Arbor. Inc., sold for more than $300 million. to his alma mater, UM, to At the time, there were only a handful of In 2011, Campbell was honored with bring the same diversity and VC firms in the state, and it is now the a lifetime achievement award by Crain’s entrepreneurial focus to its oldest. Detroit Business and the Detroit chapter performing arts school. He’s Nationally, the world of venture capital of the Association for Corporate Growth. leading development of a plan is still predominantly male. It was almost She is still going strong at age 71. In set to launch this fall to increase exclusively male in 1987, and Campbell, April, Campbell ran her 30th marathon minority representation across a former teacher with a master’s degree in in Boston. Next up is the New York faculty, staff, the curriculum and special education who decided she wanted Marathon in November. students. a career in business instead, was the first — TOM HENDERSON

37 Ilitch businesses for his parents Chris Ilitch since 2004. He’s been the public CEO | Ilitch Holdings Inc. | face of the family’s public events Detroit for years. He is president and CEO of Ilitch Holdings Inc., the hris Ilitch oversees umbrella company for the family what could be companies, and in the future will C one of the most take over for his parents in their transformative projects in chairmanship of the company. Detroit’s history. He made the announcement His billionaire parents that the new hockey arena will be founded the Little Caesars pizza called Little Caesars Arena under chain, own the city’s iconic Red a 20-year, $120 million branding

Wings and Tigers, and in 2014 PHOTO: AARON ECKELS deal for the pizza chain his unveiled a sprawling, 50-block, parents founded in the suburbs mixed-use redevelopment Total investment is forecast in 1959 and moved downtown in (dubbed The District Detroit) at more than $1 billion, and will 1989. Ilitch also unveiled plans that will be anchored by a $627.5 include new housing, retail, office for a massive nine-story Little million, 20,000-seat hockey and and green space. Caesars headquarters that will be entertainment arena. It opens in Chris Ilitch, 50, has handled built downtown. fall 2017. the day-to-day oversight of the — BILL SHEA

buy Sakti3 for $90 million. Ann Marie From 1995-2012, Sastry, who has more than 70 awarded and Sastry filed patents, was a professor Founder | Sakti3 Inc. | of mechanical, biomedical Ann Arbor, Mich. and materials science at UM. In 2003, she founded the hen James Dyson, Keck Nanoscale Intracellular the British inventor Signaling and Transport Center W known for his at UM, and in 2008, founded vacuum cleaner, told The Wall the school’s Advanced Battery Street Journal in March 2015 that Coalition for Drivetrains. his company planned to launch While at UM, she got the 100 new household devices over idea for lithium-ion batteries the next few years, he had a new PHOTO: COURTESY SAKTI3 INC. that are solid state, unlike battery in mind to power them. other lithium-ion batteries, That same month, he invested and international investors as which are filled with a liquid $15 million in Sakti3 Inc., Silicon Valley-based Khosla electrolyte. Eliminating the an Ann Arbor, Mich.-based Ventures and Tokyo-based liquid lets Sakti3 achieve more lithium-ion battery company Itochu Technology Ventures. energy and eliminates the cause that was founded by Ann Marie Dyson got interested in of overheating that has led Sastry and spun out from the Sakti3 in 2014 after an article in to so many fires and lawsuits University of Michigan in 2008. Fortune headlined: “Will this involving traditional lithium-ion That was part of a $20 million battery change everything?” In batteries. round joined by such national October 2015, Dyson decided to — TOM HENDERSON

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Drive Pink. Drive Safe. Drive Now. Bernard J. Tyson CEO | Kaiser Permanente | Oakland, Calif.

BY BETH KUTSCHER

ernard J. Tyson serves as CEO of Kaiser Permanente, the nation’s largest integrated B health care delivery system — a $60 billion enterprise with nearly 11 million plan members in eight states and the District of Columbia. Its 18,000 physicians and 180,000 employees consistently win plaudits for delivering high- quality care at moderate prices — and maintain consumer loyalty despite its in-network approach to care. Tyson, 59, is a 32-year Kaiser veteran who’s touched almost every aspect of its operations.

Born in Vallejo, Calif., he earned a B.A. and an KAISER COURTESY PERMANENTEPHOTO: MBA from Golden Gate University. Modern Healthcare ranked Tyson the third a reactive to proactive approach. I don’t just wait most-influential person in health care in 2015 until I don’t feel well and then seek care, I partner after Chief Justice John Roberts and President with my health care system to help me maintain Barack Obama. His climb to Kaiser’s top health. If I can keep you healthy, economically, included honchoing the creation of its “Thrive” that’s much better than the cost of what it would branding campaign – a ubiquitous presence in the take to bring you back to health after you’ve California media market. suffered some kind of episode.

Q: What’s the biggest change you’ve seen in your Q: Many people don’t like narrow networks. Is 32 years at Kaiser? your model for everyone? A: The purpose and meaning and why we exist A: Unfortunately, the narrative written for hasn’t changed at all. The mission of (founders) narrow networks is that you will only see one or Henry J. Kaiser and Sidney Garfield is as relevant two doctors and have limited choice. The fact is today as when they created the organization. It every member at Kaiser has 18,000 physicians at is about high-quality and affordable care, and their disposal. All our health records, our clinical affordable is the operative word these days. What guidelines and all of the things that we have has changed dramatically in the last decade is are now electronically and technology based. It how and what tools we have to achieve that. allows our physicians to have the latest and most The entire health care system is designed where up-to-date thinking at their fingertips. everyone has to come in for health care. What technology has allowed us to do is provide care Q: What attracted you to health care? anywhere, especially if someone doesn’t need to A: I wanted to be a doctor. My mom was sick be with their physician or care team. They can get with diabetes and had a lot of complications their care remotely or digitally. when I was growing up. We spent a lot of time with physicians. They were predominantly Q: Is it bringing down costs? men — white men in white coats. But they were A: It is bringing down the cost dramatically. The wonderful people who showed tender, loving infrastructure needed for telehealth and e-visits is care to my mother and also to my family. As I very different from parking lots and buildings. It’s grew older, I decided I wanted to go into the also changing the fundamental experience from administrative side.

40 ones, claiming they’d suffered heart attacks and strokes from taking Merck’s painkiller Vioxx. The company, after withdrawing the drug from the market in 2004, eventually paid nearly $5 billion to settle claims. The experience didn’t make Frazier gun-shy once he entered the C-suite. Merck recently jumped into the controversial yet lucrative hepatitis C market with Zepatier, which has a wholesale price of $54,600 for a 12-week treatment. That put the company in competition with AbbVie, Bristol-Myers Squibb and Gilead. Merck is embroiled with Gilead in a bitter lawsuit over patents on the pricey medicines. Frazier’s yearlong tenure as chair of PhRMA will force him to grapple with some of the sternest challenges the industry has faced in years. He’ll be at odds with consumer groups as the 21st Century Cures Act – a controversial bill that will reduce regulatory hurdles for device and drug manufacturers – winds

PHOTO: COURTESY MERCK& CO. its way through Congress. Whoever wins the White House given the public, the press and will undoubtedly put high drug Kenneth both candidates for president prices on the new Congress’ putting Big Pharma’s pricing agenda. Frazier policies in their crosshairs. Frazier has a proud tradition Chairman, CEO | If anyone can negotiate that to draw on as he negotiates Merck & Co. | Kenilworth, N.J. maelstrom, it’s Harvard-trained these troubled waters. It was lawyer Kenneth C. Frazier, who George W. Merck, the grandson BY ADAM RUBENFIRE took the top job at 125-year- of the company’s founder, who old Merck & Co. in 2011. His famously said after World War he first African-American preparation for running the $40 II: “We try never to forget that to lead a major U.S. billion company, which operates medicine is for the people. T drugmaker also chairs one in 140 countries, included It is not for the profits. The of Washington’s most influential serving as Merck’s general profits follow, and if we have lobbying organizations – the counsel in the mid-2000s, remembered that, they have Pharmaceutical Research and when the drugmaker faced never failed to appear. The better Manufacturers Association. tens of thousands of lawsuits by we have remembered it, the Neither are easy jobs this year aggrieved patients or their loved larger they have been.”

41 Dr. Ramanathan Raju President, CEO | New York City Health + Hospitals | New York

BY MERRILL GOOZNER

r. Ramanathan Raju in January 2014 took D on the herculean task of rejuvenating New York City Health + Hospitals, the largest municipally owned health care system in the nation with 11 hospitals and 59 other locations. Looming budget shortfalls stand in the way of meeting his biggest challenge: improving the system’s image so it can attract more privately insured patients. The gregarious India native spent 25 years as a vascular and trauma surgeon in Brooklyn

before moving into hospital PHOTO: COURTESY NEW YORK CITY HEALTH HOSPITALS+ system administration. Raju apprenticed for his current job Q: What’s the strategy? How did we do that? We had by spending three years running A: There are multiple strategies. physicians who worked 9 to Cook County Health & Hospital We completely changed the 5. We said no. We extended System in Chicago, where he structure of the organization our outpatient hours into won praise for sharply cutting from an in-patient focus to a the evenings. We’re open on its budget deficit, rolling out a network model. We also branded Saturdays and Sundays. We’re system-wide electronic health the organization. We call also expanding our clinics to record system and creating an ourselves NYCH+H, but visually where they need to be. innovative Medicaid insurance we looked very different. So we plan. unified all the hospitals under Q. How are you going to address one unified logo. your financial problems? Q: What is your biggest A: Our problem will be in 2020, challenge at NYCH+H? Q: Isn’t accessing the system an then we expect a $1.8 billion A: We have to remain financially issue for many people? deficit. We’re taking action now. stable while delivering health A: We started working on our We started with attrition: 1,200 care to the most vulnerable and access improvement. Today, if in the first half of this year. We competing with other health care you need a new mental health are also putting in efficiencies systems in New York City. So the appointment, you get one within like centralized procurement. But question becomes how to lead a seven days, [and] a pediatric we still have to do a lot of work to large in-patient focused system appointment within five days. close the gap. with a large medical education If you want a primary care and unionized environment into appointment, it is down to 19 Q: As more people get the future of population health. days. Before, it was 65 days. insurance, how are you going to

42 convince those privately insured It helped trigger the ouster of his to use a public system seen as a predecessor, Angela Braly. place for the poor? Hiring Swedish came as a shock to A: I have a great advantage that Anthem insiders, considering he had other health care leaders don’t sat on the opposite side of the table as have. My health care delivery CEO of Trinity Health, a $14 billion system reflects the community Catholic hospital system based in it serves. If you go to Lincoln Livonia, Mich. Rejecting offers from Hospital (south Bronx), most other hospital systems, Swedish opted of the employees are Hispanic to lead the insurance conglomerate into and the patients are Hispanic. a future where collaboration replaced If you go to Coney Island confrontation between payers and (Brooklyn), you will see that a providers. lot of people working there are Today, Anthem has 53,000 employees, Russian immigrants and the $79 billion of revenue and a stock price patients are Russian immigrants. that has doubled since he joined. He’s We’re trying to use culturally also the 2017 board chair of America’s competent care as an essential Health Insurance Plans, the industry’s part of our system. Speaking PHOTO: COURTESY ANTHEM INC. primary lobbying group. the language, understanding Swedish’s hospital know-how allowed the background. I have every him to construct a unique provider-payer intention of using it to my Joseph Swedish alliance in 2014. Vivity, a joint venture advantage. President, CEO | Anthem Inc. | between Anthem and seven Southern Indianapolis California health systems, will share Q: The local tabloid press risk as an integrated network with a no- seems to have a bull’s-eye on BY BOB HERMAN deductible, low-cost plan. Anthem has your back. duplicated that model with a dominant A: New York has a couple oe Swedish is a methodical man. health system in Wisconsin. of newspapers not very well He speaks deliberately, and, until But now on to the main show. Swedish disposed to city government, J recently, grew his organization the and his team are looking to complete and I’m an extension of same way. He cultivated the trait through the marriage between Anthem and city government. So all years of fly-fishing and running one of the Cigna before year’s end — a proposition my achievements will be largest Catholic health care systems in the that has not won a lot of fans among underplayed and my deficiencies country. stakeholders. Hospitals, doctors and will be magnified 10 to 20 times. But now, as chief executive of Anthem, consumer groups have railed against the We always respond. Not all our a leading health insurance company, merger, calling it an anti-competitive responses make it into their Swedish appears to have cast caution to boondoggle that will inevitably lead news stories. the wind. He’s neck-deep in the waters to higher prices for consumers, lower of an intensive regulatory review of what payments to providers and higher profits Q: New York has a lot of would be the largest-ever health insurer for Anthem. famous academic medical merger, between Anthem and Cigna. The country’s largest employers, centers. How do you get along? And he’s battling a rapidly changing whose self-insured plans are A: We will compete at one payment environment instituted by the administered by companies like Anthem level, but collaborate at one Affordable Care Act. and Cigna, have reservations of their level. That has been very, When the 65-year-old health care own. Members of Congress are having very fruitful for them. We are leader took the corner office in 2013, a field day with the proposed merger, a major teaching facility for the company, then known as WellPoint, which gave both sides of the aisle fodder the medical schools. All their wasn’t stable. The stock price was for their respective pet political causes. medical residents go through depressed, and paranoia around what the So how will Swedish win everyone our system for training. ACA meant for insurers was rampant. over? Patience, most likely.

43 Thomas Frist Jr., who helped build HCA into a nearly 450-hospital behemoth at one point. Then there was Rick Scott, the current governor of Florida, who resigned from HCA in 1997 in the face of a federal fraud investigation of alleged kickbacks and Medicare over-billing that would eventually cost HCA $2 billion to settle. Johnson, on the other hand, now runs a $40 billion firm

less interested these days in PHOTO: COURTESY MAYO CLINIC buying new hospitals than in expanding the ancillary services surrounding the 168 Dr. John hospitals it already owns. His goal: Increase HCA’s share of Noseworthy health care spending in each of CEO | Mayo Clinic |

PHOTO: COURTESY HCA HOLDINGS INC. its markets. Rochester, Minn. A native of Nashville, Tenn., Johnson knows the BY ADAM RUBENFIRE Milton Johnson responsibility of piloting a CEO | HCA Holdings Inc. | company that has given rise neurologist by training, Nashville, Tenn. to more than 150 spinoff Dr. John Noseworthy companies since its founding A has had a quarter- BY DAVE BARKHOLZ in 1968 and whose executives century tenure with the Mayo have gone on to create Clinic that has taken him from EO Milton Johnson hundreds more health care staff physician to his current is the embodiment companies. He’s also a bridge role as top leader of the world- C of a mature HCA builder. These days, he’s just as renowned institution. But after Holdings, the nation’s largest likely to get his top executives seven years at the helm, he faces for-profit hospital chain. His involved in the nonprofit- a unique situation: The Mayo firm and its leader have sworn oriented American Hospital Clinic, like the rest of the health off their wild, younger days Association as the Federation care industry, has to adjust to a of rapid growth, blockbuster of American Hospitals, which cost-controlled reimbursement deals and periodic scandal. represents for-profit systems. environment. Trained as a CPA who rose In July 2015, Johnson and Mayo will always be known through HCA’s tax department his wife, Denice, donated for its cutting-edge medical to become first HCA’s CFO $10 million to his alma expertise. High on Noseworthy’s and then CEO in 2014, mater, Belmont University agenda will be parlaying Mayo’s Johnson has managed the in Nashville, for scholarships global reputation into even more company conservatively and to the needy. He had to help high-end patients flying in from profitably. his single mom by working overseas to pay full freight for Over his 34 years with the through high school and treatment. firm, Johnson has worked for his early college years until He’s betting big he can make a number of colorful CEOs. he earned a scholarship at it happen. Mayo three years ago They include co-founder Dr. Belmont. launched a $6.5 billion expansion

44 program that will transform its home base of Rochester, Minn. Judith Faulkner – population 100,000 – into CEO | Epic Systems Inc. | Destination Medical Center. Verona, Wis. He’ll need the parsimonious state legislature to pony up a half billion BY JOE CONN dollars in tax subsidies to make it happen, though. udith Faulkner is But thinking big apparently usually the first to arrive comes naturally in the high J and last to leave any prairie. Mayo operates campuses convention or trade show. The in Arizona and Florida and now leader of the nation’s largest serves over a million patients health information technology a year from across the globe. company will often spend hours Trained at Canadian medical huddled with customers of Epic schools and Harvard, Noseworthy Systems, the Wisconsin-based is an expert on multiple sclerosis. company she founded in 1979. He has spent more than two Her devotion to customers’ decades designing and conduct- needs helped make Epic ing clinical trials in the U.S. and the dominant brand among Canada and is the author of over electronic health records

150 research papers. systems, and Faulkner one of the PHOTO: COURTESY EPIC SYSTEMS INC. During his tenure, wealthiest women in America. Noseworthy expanded the Users include most of the largest previous car, also an Audi, was organization’s reach through and most notable health systems about 11 years old.” the Mayo Clinic Care Network, in the U.S., including Kaiser In 2014, Faulkner announced a knowledge-sharing initiative Permanente, Cleveland Clinic, a plan to create a charitable launched in 2011. Mayo has Johns Hopkins and the Mayo foundation funded with her inked affiliations with health Clinic. Epic software now runs Epic stock. Her double aim systems across the nation and in 1,600 hospitals, 33,500 clinics is to make contributions to the world, partnering with over and 1,700 retail clinics and is the communities of Epic’s 35 providers in the U.S., Puerto used by 330,000 physicians customers and ensure Epic Rico, Mexico and Singapore and nationwide. remains a privately held providing them with expertise The privately held firm company. from Mayo doctors. reported global revenues of Faulkner, a computer Noseworthy also eschews $2.02 billion in 2015, earning programmer, launched her the consolidation trend that is Faulkner the No. 3 spot on firm in Madison, Wis., in the sweeping through health care, Forbes’ list of America’s Richest basement of a building used as saying it’s not good for patients. Self-Made Women with an a business incubator. Her first Instead, he has chosen to affiliate estimated net worth of $2.4 gig was designing a computer with other systems through a billion. The self-effacing and system to track physician on-call subscriber model that offers them publicity-shy Faulkner told schedules at the University of digital access to Mayo Clinic Modern Healthcare in a rare Wisconsin hospital. physicians, treatment protocols 2014 interview, “I don’t even Faulkner has a master’s and data insights. There’s a catch, know, (so) how do they know?” degree in computer science from though. Before accepting new Her staff says she’s a terrible Wisconsin and an undergraduate partners, they make sure the billionaire – definitely in the degree in mathematics from corresponding system meets Warren Buffett mold. “My car Dickinson College in Carlisle, Mayo’s exacting standards in is about 5 years old — an Audi Pa. “Math, in my mind, is truth,” delivering care. station wagon,” she said. “The Faulkner said.

45 Bogle is known as the man who launched the Vanguard 500 Index fund, the first index fund open to the general public. Someone who plunks down $3,000 for shares in the fund will pay just 0.16 percent a year, or $4.80, in fees, versus 0.70 percent, or $21, for the average stock mutual fund, according to the Investment Company Institute. “Indexing has gone from 5 percent of the industry in 1990,

PHOTO: PETER FOLEY and now it’s 35 percent,” Bogle said. “That trend just gets bigger

and bigger. Since 2007, indexing PHOTO: BLOOMBERG NEWS John Bogle has taken in $1.5 trillion, while Founder | Vanguard Group | actively managed [funds have] Valley Forge, Pa. lost half a trillion. That’s without Warren Buffett precedent. It’s becoming an index Chairman, CEO | Berkshire Hathaway Inc. | BY JOHN WAGGONER industry.” Omaha, Neb. But cutting costs hasn’t been ohn C. “Jack” Bogle is Bogle’s only focus. He has the arren Buffett is the most successful marking his 65th year radical notion that a mutual investor of the past 100 years. More J annoying the mutual fund should be, well, mutual — W than that, as the stock market has fund industry and delighting not simply a profit center for a soared and crashed over the past three decades, shareholders. financial services company. What he has become one of the most widely admired Bogle dedicated his college does that mean? Americans alive. senior thesis to a then-obscure Among other things, not His folksy good humor and nostrums about topic: “The Economic Role of the trotting out highly specialized investing have transformed him into an archetype, Investment Company.” The paper funds whose only purpose is a modern-day Mark Twain or Will Rogers, as The suggested, among other things, to attract short-term assets. Atlantic noted in 2004. Buffett, 85, is a Midwestern, that sales charges were too high. Reducing taxable distributions. down-home truth teller who reminds the average He didn’t know at the time that Encouraging sober, long-term investor of the dangers and temptations of easy cheap index funds would become investment. money and Wall Street excess. a multitrillion-dollar industry. “I have a lover’s quarrel As the chairman and CEO of the giant holding “But I did know that reducing with the industry,” Bogle said, company Berkshire Hathaway Inc., Buffett’s costs and sales commissions paraphrasing Robert Frost. investment performance is unparalleled. From would be important for the But investors have no quarrel 1965 to 2015, the compounded annual gain of industry’s future growth,” said with him. His legions of fans, Berkshire Hathaway shares was 19.2 percent, or Bogle, 87. known as Bogleheads, adore close to double the return of the S&P 500, including All of this was far in the future him. The Vanguard Group now dividends, over the same time. when Bogle landed his first job, has $3 trillion in assets under Buffett’s cool eye in the face of financial panic, at Wellington Management in management worldwide. And along with his turn of a phrase, has won the 1951. He clawed his way to the the Vanguard Institutional Index public’s devotion. “Fear is the foe of the faddist, top, only to get fired over an ill- fund, a staple of 401(k) plans, is but the friend of the fundamentalist,” he wrote advised merger. He then founded the nation’s largest fund at $204.5 in Berkshire’s 1994 annual letter to shareholders. the Vanguard Group in 1974. billion in assets. It charges 0.04 Investment advice for the ages, courtesy of the To most investors, however, percent in expenses. Oracle of Omaha. — BRUCE KELLY

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Setting the wheels of change in motion

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Fiduciary Standard, formed A: The SEC has to act. Whether Sheryl Garrett in 2009 as policymakers were it’s in the next year, I wouldn’t Founder, President | Garrett reviewing the repercussions of hold my breath. Whether it’s Planning Network Inc. | the financial crisis. in the next five years? There Eureka Springs, Ark. I feel more confident because Q: What’s different about of the Labor Department rule. BY CHRISTINE IDZELIS Garrett Planning Network We need to reinstate trust with compared to other financial people. We have to rebuild faith. resident Barack Obama advice firms? singled out Sheryl A: The primary difference is Q: You founded Garrett P Garrett for her fine work accessibility — providing access Planning Network in 2000. as a financial adviser during a for all people to fiduciary advice. What made you want to 2015 speech in which he called We impose no minimums of any work with advisers instead of on the Labor Department to sort. If someone needs advice or individual investors? move ahead with a proposal assistance, we will provide that. A: I was really torn. I really to raise investment advice They do need to pay the bill, loved working with clients. But standards for retirement but we try to tailor that to the when some very wise person accounts. The fiduciary rule, specific needs of the individual. brought it to my attention that which was finalized in April … We charge based on time I would exponentially affect 2016, requires advisers to act in versus the amount of assets. We more lives by working through the best interests of their clients. are commonly known as the advisers, I thought I could Garrett, 54, is the founder financial advisers for Middle really make a difference. Our of Eureka Springs, Ark.-based America. organization is serving about Garrett Planning Network, 25,000 households in a given a national group of financial Q: Do you think the Securities year. We now have about 275 planners who don’t turn away and Exchange Commission advisers and growing. Each people with little to invest, as should issue a uniform fiduciary is able to serve hundreds of many in the industry do. She’s rule that applies beyond clients, helping to try to make also a member of the steering retirement accounts to all forms financial advice accessible to group at the Committee for the of personal investment advice? all people.

48 John Rogers Chairman, CEO | Ariel Investments | Chicago

BY JEFF BENJAMIN

ohn Rogers is widely recognized as one of the J brilliant financial minds, and not just of his generation. Rogers, 58, has been focused on investing since before he was a child and his father started giving him stock as Christmas and birthday gifts. Today, Rogers is chairman, CEO and chief investment officer of Ariel Investments, the $10 billion asset management firm he founded in 1983. The firm was one of the first black-owned money management companies. He is also lead portfolio manager of the Ariel Fund, a $2 billion mutual fund, the success of which contributed to Rogers’ inclusion in the book “The WINTERSPHOTO: TODD World’s 99 Greatest Investors: The Secret of Success” (Roos & embodies a commitment to Chicago’s South Side, currently Tegnér AB, 2014). national service. serves more than 500 students A Chicago native, Rogers is After Barack Obama was from kindergarten through an example of those dedicated to elected president in 2008, eighth grade. The student body giving back to communities. Rogers was co-chairman for the is 98 percent African-American. He sits on the corporate boards 2009 Presidential Inaugural The school has been recognized of Exelon and McDonald’s and Committee, and he currently as one of the top-performing serves as a trustee at the University serves on the Barack Obama schools on the Illinois Standards of Chicago. He is also a member Foundation’s board of directors. Achievement Test, consistently of the American Academy of Arts But his philanthropic bent outperforming other schools in & Sciences and a director of the started much earlier. In 1989, the district. Robert F. Kennedy Center for Rogers created the Ariel “We want to help Ariel Justice and Human Rights. Foundation, which is dedicated Community Academy be the Rogers graduated from to making financial literacy a best grade school in the city Princeton University, where he part of basic education. It has of Chicago,” Rogers said. “We was captain of the basketball grown into the Ariel Education want to serve as a role model team. In 2008, the school Initiative, which includes for how other financial services awarded him its highest honor, Ariel’s sponsorship of the Ariel companies can partner with the Woodrow Wilson Award, Community Academy, a Chicago Chicago Public Schools. It’s which is presented annually public school. important to invest in our to the alumnus whose career The school, located on children’s futures.”

49 PHOTO: COURTESY MORNINGSTAR Joe Mansueto Chairman, CEO | Morningstar Inc. | Chicago

PHOTO: COURTESY INVESTMENT NEWS COURTESY PHOTO: oe Mansueto singlehandedly democratized investment information when he founded and lose her job. J Morningstar Inc., which made data on Sallie Krawcheck won the battle. stocks, mutual funds, exchange-traded funds Then lost her job. and other investments easily accessible — and Krawcheck But she came back strong. comprehensible — for any average investor with an Co-founder, CEO | Ellevest After a couple years heading internet connection. Chairwoman | Pax Ellevate up Merrill Lynch Wealth As chairman and CEO of the Chicago-based Management and Ellevate Management and U.S. Trust, independent investment research and management Network | New York she jumped into her latest company, Mansueto has built Morningstar into ventures as chairwoman of a $3.5 billion multinational powerhouse that’s allie Krawcheck financial services firms Pax relied upon by investors, financial advisers and remembers falling Ellevate Management and asset managers alike for its data and analysis, S asleep on her sofa in the Ellevate Network. She is also co- revolutionizing the financial industry in the middle of the afternoon one day founder and CEO of Ellevest, a process. several years ago, three months new woman-focused automated Mansueto started the company from his after being fired. She had been investment platform whose goal apartment in 1984, positioning it at the nexus of thinking about the fact that is to break the investing gender the ascension of 401(k) plans and do-it-yourself there was no place to be and gap and help more women retirement investors looking for the wherewithal to nobody was counting on her. become financially literate. make financial decisions on their own. Since then, She had been CEO of Citi “Hard work and success he’s not only grown a database of approximately Wealth Management, which are positively correlated,” 525,000 investment offerings, he’s also expanded oversaw Smith Barney, and Krawcheck said. “Not every the company to include an investment management had been pushing her boss to time, not every week and and advisory business with $180 billion under its reimburse clients for alternative sometimes not every year, but if purview. investment losses. She knew you put the work in and keep at The billionaire, a former stock analyst, is also a there would be one of two it and are persistent and gritty, bit of a news junkie, having purchased the financial outcomes: She’d win the battle you will be successful.” magazines Inc. and Fast Company in 2005. and lose her job or lose the battle — ALESSANDRA MALITO — GREG IACURCI

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workspaces. His landlord came based on a vision that communal Adam up with that plan and recruited working could have widespread Neumann to help. appeal among entrepreneurs and Neumann “The idea for our partnership small businesses — ambitions Co-founder, CEO | WeWork | was a matter of friendship,” that far outstripped those of New York said Jack Guttman, who owns his partners. Today he leads a the office building in Brooklyn juggernaut valued at $16 billion BY DANIEL GEIGER where Neumann’s children’s that is reinventing the way clothing brand had been a tenant businesses use office space. efore he founded the and who started the co-working “He was very aggressive, and most highly valued co- company GreenDesk in 2006 he wanted to expand way faster B working company on the with Neumann’s help. “He was a than I was comfortable with,” planet, Adam Neumann’s dream hardworking, honest individual, Guttman said. was to invent a pair of padded and it was simple: We wanted Neumann founded WeWork pants in which toddlers could him to keep an eye on the space in 2010 with Miguel McKelvey, crawl around without scraping and gave him power to make its chief creative officer, and with their knees. some decisions.” $1.3 billion in venture capital, the It wasn’t even his idea to What Neumann did have was company has rapidly expanded to break into the business of shared a voracious appetite for growth 13 countries and 105 locations. In

52 New York City alone, they lease enough space to fill the Empire State Building. While co-working itself is nothing new — the concept has been around since at least the 1990s — Neumann has pushed the business into the mainstream by creating hip, open offices with beer on tap, creative energy and a culture of collaboration. Having spent part of his childhood on a kibbutz near the Gaza Strip in Israel, Neumann uses his origin story to sell the power of working together to 50,000 members and major financial backers including Fidelity Investments, T. Rowe Price, Goldman Sachs and JP Morgan Chase. “A big part of Adam’s genius has been his ability to raise PHOTO: BUCK ENNIS huge amounts of money,” said Cheni Yerushalmi, a friend of consulting business whose clients include Neumann’s whose own co- Danny Meyer big banks, hospital systems and airlines. working company was knocked Founder | Shake Shack, Shake Shack Inc., Meyer’s 12-year-old out of business when a WeWork Union Square Hospitality | New York burger company, went public in early opened nearby. 2015 and has outposts in 16 states and six Neumann’s challenge will be anny Meyer started out as a countries, and its shares trade for nearly sustaining WeWork’s growth restaurateur and ended up a double its opening price of $21. — and maintaining its large D business mogul. Meyer says he spends 80 percent of scale — in a real estate market He energized New York City cuisine his time hiring, training and refining that notoriously ebbs and flows with an early focus on sourcing locally company culture. Now he’s endeavoring with the health of the economy. and, beginning with his first restaurant to change the industry by replacing The company is reportedly — Union Square Café — helped draw tipping with a revenue-sharing structure planning to lay off 7 percent of its customers, residents, entrepreneurs that affords a better quality of life to 1,000-person workforce, though and investors into neighborhoods that waitstaff and back-of-house workers. officially WeWork has said it will had suffered from years of neglect. He “We operate in an intensive industry,” hire 500 more employees by the eventually rolled out 13 restaurants but said Richard Coraine, the chief end of the year and is planning managed to unify his disparate culinary development officer at the group. “What an aggressive expansion in Asia. approaches through an obsession with Danny does is make it a joyful expression Meanwhile, it’s expanding its friendly service. of how business should be.” co-working concept to residential Today, he employs 2,000 people In September, Meyer will reopen the real estate. It’s co-living concept, at three companies: Union Square 31-year-old Union Square Café, four WeLive, is up and running Hospitality, home to his 12 restaurants blocks from its original location, which he on Wall Street (and another (he sold Eleven Madison Park); Union closed after a rent hike. “It has truly felt outside Washington, D.C.) with Square Events, a catering company that like a hole,” Meyer, 58, said. “I never spent expectations that it will roll out serves food at CitiField and the 9/11 a day being a restaurateur without Union dozens more. Memorial; and Hospitality Quotient, a Square Café.” — CARA EISENPRESS

53 executive, who had a hand in launching Hulu and who regards her role at GE as figuring out “what comes next,” is charged with helping the company compete in unconventional ways. “As we venture into new territory, we need radically different ways to solve problems,” Comstock, 56, said. “There’s no operator’s manual for most of what we’ll ask people to work on.” Her journey to her role as in-house futurist at the $280 billion company began with running corporate public relations departments, first at NBC and then at GE. As the industrial giant’s chief marketing and commercial officer, starting in 2008, she grew her portfolio to include oversight of Silicon Valley-based investment arm GE Ventures, as well as GE Lighting, the $3 billion division that dates to the company’s founding by Thomas Edison. Those divisions and others now fall under Comstock’s Business Innovations unit, which has become a key part of GE’s transition to a company focused on the industrial

PHOTO: BUCK ENNIS internet, clean energy and health-related technology. in the company’s 124-year Comstock herself led the Beth Comstock history, majored in biology, development of the recent Vice chair | General doesn’t have an MBA and, “What’s the Matter With Electric Co. | New York by her own admission, is shy Owen” ad campaign, which and introverted. Clearly, showcases GE as a place BY MATTHEW FLAMM she is not the sort of figure where young engineers work usually associated with the on real-world megaprojects, eth Comstock, the first corner office in a Fortune 100 not silly apps. The campaign female vice chairman company. brought “an eightfold increase B of General Electric But the onetime NBC in recruiting,” she said.

54 PHOTO: COURTESY HUFFINGTON POST PHOTO: COURTESY CHUBB LTD. an audience off the content Arianna of unpaid bloggers and other Evan Greenberg publications’ work, the Huff Post CEO | Chubb Ltd. | Zurich, Switzerland Huffington would go on to hire reporters and New York Founder | Huffington Post | and be the first of the digital-only New York news sites to win a Pulitzer Prize. hen Evan Greenberg joined American It now publishes editions in International Group Inc. more than 40 rianna Huffington, 14 markets internationally and W years ago, odds are he wasn’t planning the Greek-born, had 75 million unique visitors on creating a rival for the company that his father A Cambridge-educated in the U.S. in May — ranking led to global prominence. Co-founder of the global web seventh among news sites Yet that’s just what he did leading the merger of property that bears her name, despite an 18 percent drop in Ace Ltd., a commercial insurer formed in Bermuda has had an unlikely life. A traffic compared to the same in the 1980s, with Chubb Corp., one of the most conservative pundit through the month a year ago, according to well-known brands in the business. The 2016 1980s and ’90s and an outspoken comScore. deal, valued at more than $29 billion, creates an liberal since 2004, the prolific Lately, the onetime insurance giant that covers everything from the author and commentator was workaholic has reinvented homes of the wealthy to oil rigs and satellites. in her 50s before she began the herself as an evangelist for The deal sets the bar for insurance mergers in best-known part of her career: getting more sleep with her 15th an era of consolidation. Trading as Chubb Ltd., Co-founding the Huffington book, “The Sleep Revolution.” the merged company has leading positions in the Post in 2005. After Verizon bought AOL in lucrative insurance for high-net-worth sector, The web property pioneered 2015 for $4.4 billion, there were several specialty commercial lines and has a global news aggregation and user- questions about whether the footprint that will enable it to take advantage of a generated content and forever left-leaning Huffington, now fragmented market. changed the way newspapers 66, would stick around with As the son of legendary AIG CEO Maurice approached online publishing. her publication’s new right- “Hank” Greenberg, Evan Greenberg was tapped And though the publication leaning parent. In August those to lead AIG after he rose to president and chief struggled to turn a profit, AOL questions were answered when operating officer. But he left AIG in 2000 when it paid $315 million for it in 2011 Huffington announced she was was clear his father had no intention of retiring. and made it central to the leaving the site to focus on her He joined Ace the following year and became company’s content strategy. health and wellness ventures. CEO in 2004. — MARK A. HOFMANN Initially derided for building — MATTHEW FLAMM

55 STOCK PHOTO

Seven years later, AmEx went on to weather Ken Chenault the financial crisis. Chenault converted the CEO | American Express | New York company into a bank, making it eligible for bailout money, and by the summer of 2009 had en Chenault got a job at American Express repaid $3.4 billion in rescue funding. in 1981 and in 2001 became CEO. Fifteen Today, Chenault faces a different set of K years later, he’s still there — a remarkably challenges. Rivals like J.P. Morgan Chase have long tenure for a major financial services fattened up their cards’ rewards programs to lure company. AmEx’s high-end clients, while the high fees it Chenault, 65, has steered AmEx through some charges merchants are falling under pressure from serious storms, starting with the World Trade Visa, MasterCard and federal antitrust authorities. Center attacks that took place across the street Still, Chenault runs one of the best brands from corporate headquarters nine months after around and retains a key backer in Warren he took the helm. Even as earnings took a serious Buffett, AmEx’s largest investor, who describes hit when corporate travel collapsed, AmEx waived the CEO as “talented and shareholder-oriented.” late fees and raised customer credit limits. — AARON ELSTEIN

56 Tory Burch Chairman, co-CEO | Tory Burch | New York

BY PETER D’AMATO

ory Burch, whose eponymous fashion T label reached $1 billion in revenue just 10 years after its 2004 launch, credits her father’s fashion sense for her design tastes and her longtime collaborators for helping her maintain the quality of her products. “The creative process is extremely personal—trust is essential,” Burch, 50, said. Burch’s self-confidence and belief in the people around her served her particularly well when, after hiring the former president of Ralph Lauren as co- CEO, rumors swirled of a public offering. She spent the next year fighting off Wall Street.

“I think being a private PHOTO: COURTESY TORY BURCH company is a luxury,” she said at a Women’s Wear Daily constituencies are the even slouchy newcomer Sweaty summit last year. “And that stockholders,” said retail Betty can’t pull off. is something I have always consultant Pam Danziger. Burch also tries to foster thought.” “That kills creative companies.” the next line of female leaders It was a wise decision Burch’s expansion has through the Tory Burch that has given her company been steady. Architect Daniel Foundation, which launched in staying power during a period Romualdez has designed each 2009. Though the percentage of turbulence for luxury retail location. Burch spent of startups founded by women fashion brands. Those that nearly three years researching increased to 18 percent in have gone public have been performance fabrics for her 2014, female-founded startups forced to expand aggressively first stand-alone brand, Tory captured only 10 percent of the in service of their stock price. Sport. The label’s “Studio” total venture funding between Publicly held Michael Kors clothing serves the same yoga 2010 and 2015, according to was scrutinized in May after enthusiasts as Lululemon a study by CrunchBase. To many Nordstrom stores pulled with a prep angle. The skirts address funding gaps, Burch’s its handbags from shelves and sweaters in its “Coming foundation provides loans over complaints of shoddy & Going” line are for trips to and mentoring. The winner quality; sales of Coach are just the gym or lunch with friends, of this year’s inaugural pitch recovering after overexpansion while keeping the look office- competition received a $100,000 tarnished the brand’s luster. appropriate, a feat that Under grant to fund her organic candy “[Public companies’] Armour, Gap-owned Athleta or bar company.

57 outlive his or her assets. Q: Is longevity risk greater today than it was 10, 20 or 30 years ago? Why? A: I am not sure but I imagine so, particularly with the advent of new medical advances to cure cancer and prevent Alzheimer’s, reconfigure our muscles and bones, and hold heart disease in abeyance. Also in the old days, the elderly lived with their children, who took on the risk of their parents’ living a long time. Nowadays, with fractured families and fewer offspring, we have a higher chance of living alone at older ages — making elderly life possibly riskier. While Medicare, Social Security and (government-provided) long-term care are helping many, these programs are themselves facing insolvency. This is why I believe that private provision of longevity income via insured products is essential for many.

Q: Is longevity risk being addressed sufficiently by corporations and public

PHOTO: COURTESY UNIVERSITY OF PENNSYLVANIA institutions? A: We know that few Foundation of Employee Benefit corporations offer lifetime Olivia Mitchell Plans professor, and a professor retirement income streams, Professor | Wharton School of of insurance/risk management and fewer still continue to the University of Pennsylvania | and business economics/policy provide retiree health insurance. Philadelphia at the Wharton School of the Medicare, Social Security and University of Pennsylvania. She government-provided LTC are BY ROB KOZLOWSKI also is executive director of the facing insolvency. So public Pension Research Council, and provision is inadequate, and it is ith a focus on director of the Boettner Center likely to be challenged further as financial literacy on Pensions and Retirement the population ages. W and retirement Research at the Wharton planning, Olivia Mitchell has School. Q: How could it be addressed been shaping public thought more comprehensively? through her research on Q: What is longevity risk? A: People will need to work financial crises and longevity A: Longevity risk, the way I longer, save more, invest in their risk through the years. look at it, has to do with the health with more vigor and – Mitchell is the International possibility that someone will possibly – expect less.

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Aetna is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies, including Aetna Life Insurance Company and its affiliates (Aetna). ©2016 Aetna Inc. 2016030 Robin Diamonte Chief Investment Officer | United Technologies | Farmington, Conn.

BY ROBERT STEYER

our years after United Technologies Corp. F launched its Lifetime Income Strategy program, it remains the largest and most ambitious corporate effort to help employees prepare for spending their retirement dollars — not just accumulating them. The driving force for the program is Robin Diamonte, corporate vice president and chief investment officer, who has acted while most of her corporate peers have talked or debated or waited.

“Robin is one of the heroes PHOTO: PETER GLASS of retirement security,” said Joshua Gotbaum, the former insurance departments—about plan participants have invested director of the Pension Benefit their goals and how to achieve in the program. Guaranty Corp., who worked them. Making sure the program with Diamonte in her role as a “We’ve made great progress succeeds will take a sustained member of the PBGC advisory in four years,” said Diamonte, communication effort, she said, committee. “She has gone way who is responsible for the and the personal touch is most beyond what most corporate company’s $20.1 billion in effective. pension managers would do. She defined contribution plan assets, “Face to face is the best way” cares about — and deals with — $24 billion in domestic pensions to educate, she said. Given the people’s real issues.” and $7 billion in foreign pension company’s size and sprawl, And the biggest retirement plans. “It takes a while to gain videos and a website are the issue is to help employees guard traction.” most effective ways to reach the against outliving their savings. So far, participants in the broadest audience. Company Diamonte, 52, has United Technologies defined officials also continue conducting approached her work with contribution plans have invested lunch-and-learn sessions. tenacity and creativity. It took $825 million in the lifetime “Employees know a lot about her and her staff about three income strategy program, or health-care benefits — but less years to convince corporate about 4 percent of total defined about savings benefits,” she said. executives—as well as contribution assets. Diamonte “It will take some time to get executives in the company’s said 25,000 of the company’s them to understand what this is benefits, legal, finance and 112,000 defined contribution all about.”

60 PHOTO: AP PHOTO: NANCY KAYE Ratings called the legislation “the Gina most comprehensive measure Neel Kashkari undertaken by any of the states President, CEO | Federal Reserve Bank Raimondo in recent years.” The pension of Minneapolis | Minneapolis Governor | State of Rhode system changes were approved Island | Providence, R.I. by lawmakers and signed into law BY RICK BAERT by then-Gov. Lincoln Chafee in efore she was elected 2011. eel Kashkari will always be the man who Rhode Island’s first But that’s when the trouble helped bail out the world economy. B female governor in started. The hybrid plan became N He also led an early effort by bond giant 2014, Gina Raimondo led the subject of lawsuits by public Pacific Investment Management Co. LLC to build groundbreaking reforms of the employee unions and retiree its equity business, made a run to become governor Ocean State’s pension fund, coalitions, which wanted to block of California, and now is president and CEO of the dramatically improving the the 2011 overhaul. The suits Federal Reserve Bank of Minneapolis. health of the retirement system. became the subject of closed- But Kashkari, a Goldman Sachs alum, is best As general treasurer, door mediation from 2012 until known as an architect and the first leader of Raimondo served as chair of the 2015. the federal government’s Troubled Asset Relief State Investment Commission, Still, Raimondo stuck to Program in 2008, amid the global financial crisis. which establishes Rhode Island’s her guns as she negotiated Through TARP, the government bought failing investment policies. In 2010, just settlements with the plaintiffs illiquid assets from financial services firms. before she was elected treasurer, that would ultimately keep the Kashkari, interim assistant secretary for financial Rhode Island’s pension fund was bulk of her pension reforms stability at the U.S. Treasury, became known precariously underfunded. intact. during his seven-month tenure as “the $700 billion As the chair, Raimondo, Finally, in June 2015, Rhode man” — the amount originally placed in the TARP 45, pushed for legislation Island Superior Court Judge program — because he chaired the committee that would make sweeping Sarah Taft-Carter approved that determined which firms would receive TARP changes to save the plan. This a settlement to end litigation money. legislation included creating against Rhode Island’s state In 2009, Kashkari was named to lead PIMCO’s a hybrid defined benefit/ pension overhaul. At the time, nascent equity business, but he left the firm in 2013 defined contribution retirement Raimondo said in a statement to run for California governor in 2014, losing to system, raising retirement ages that the settlement was “in the Edmund G. “Jerry” Brown Jr. and suspending cost-of-living best long-term interests of all Since January, Kashkari, 43, has led the increases for participants in Rhode Islanders” and would keep Minneapolis Fed and remains in the headlines. the then-$7 billion (now $8.3 Rhode Island “on a path toward Speaking to the Brookings Institution in February, billion) Rhode Island Employees’ financial stability, economic he said the largest U.S. banks — some of which Retirement System, Providence. growth and job creation.” benefited from TARP — should be broken up. A report issued by Fitch — JAMES COMTOIS

61 PHOTO: COURTESY US DEPARTMENT OF LABOR

been an ardent defender of the O’Donoghue LLP. Phyllis Borzi Employee Retirement Income At the Department of Labor, Assistant Secretary for Security Act. She also is not Borzi has continued to fight for Employee Benefits Security | someone who flinches in the plan participants and against U.S. Department of Labor | face of controversy or criticism. employers not seen as putting Washington, D.C. Her passion for protecting their fiduciary duties first. benefit plan participants is “It is Phyllis’ passion, vision, he odds that the almost as old as ERISA itself. tenacity and sophisticated Department of Labor’s From 1979 to 1995, she served grasp of the law that drove the T new fiduciary rule would the House Education and Labor movement to stop conflicted see the light of day were mixed Committee’s Subcommittee on advice,” said Karen Friedman, right up until the end, but Labor-Management Relations executive vice president of the anyone who really knew Phyllis as pension and employee Pension Rights Center. Borzi would be willing to take benefit counsel. From there, Of course, Borzi hasn’t won that bet. she straddled the worlds of every battle. The first attempt Borzi, who was confirmed university research and ERISA to tighten the fiduciary standard in July 2009 as assistant law as a professor at George for retirement investment secretary of labor for the Washington University and advice ended in defeat, but Borzi Employee Benefits Security of counsel with Washington and her team prevailed on the Administration, has long law firm O’Donoghue & second try. — HAZEL BRADFORD

62 PHOTO: COURTESY BLACKROCK

The soft-spoken yet He also would like CEOs of Laurence intense Fink, 63, was one of major companies to resist short- the eight original founders term thinking and has suggested D. Fink of BlackRock, which was that global regulators looking Chairman, CEO | BlackRock | originally formed in 1988 to minimize systemic financial New York under the umbrella of system risk are focused on the another money manager, The wrong things. BY JAMES COMTOIS Blackstone Group, as a risk But he’s got more on his mind management and fixed-income than investing. At Pensions & hen BlackRock Inc.’s institutional asset manager. Investments’ Global Future chairman and CEO, In 1992, the firm adopted the of Retirement conference in W Laurence D. Fink, name BlackRock. By the end of June 2015, Fink didn’t just talk tells the investment world what that year, BlackRock had $17 about retirement and investing he thinks, investors take note. billion in assets. Two years later, topics. He also discussed his Since 1988, Fink has built that figure rose to $53 billion. love of music and his previous — and now runs — the world’s Today BlackRock manages investment work with record largest money manager, so it’s $4.737 trillion in assets. labels. not surprising that investors are Fink has been talking about Fink told conference attendees keen to listen. how to get the world’s finances that he invested in a record A straightforward man who in better shape. He says, for company several years ago called regularly speaks to the masters example, that investing in Octone Records. And the first of the financial universe, he’s infrastructure — airports, band it signed? Maroon 5. been offering thoughts recently roads, water and energy systems The business leader also on topics ranging from too big — can help solve a toxic brew talked about some of his favorite to fail financial institutions to of economic and political indie bands, including The saving for retirement and long- challenges coming to a head National, Of Monsters and Men term investing. globally. and The War on Drugs.

63 Maureen Steinwall Owner, president | Steinwall Inc. | Coon Rapids, Minn.

BY GAYLE S. PUTRICH

aureen Steinwall knows a thing or M two about keeping a family business in the family. She bought Steinwall Inc. from her father in 1987, and has kept the injection molding business growing ever since. On the way, she’s pioneered ways to use technology to help workers on the plant floor, and she’s made a name for herself in the traditional boys’ network of plastics processing. Steinwall’s professional career began at Honeywell Inc.’s Micro Switch Division in Freeport, Ill. When Honeywell offered her a promotion to run the third shift

at a factory in New Mexico, she INC. STEINWALL COURTESY PHOTO: called her dad for advice. He said she should take the job, and then two women in the Plastics Hall of forward. asked his daughter, who had an Fame. The “working for and with In what can sometimes be accounting degree and plenty of family” relationship is a unique a very traditional industry, business savvy, for some advice one that has to remain separate, Steinwall has pulled her of his own: “How do you sell a she said, and that has carried into company into the modern age, business?” the third generation of Steinwall, pioneering the use of iPads at “You sell it to your daughter!” Inc. each of the 50 presses, with was her response. After a “My son and daughter, when videos that show workers the three-minute conversation, her they started working here, they details of molding, inspecting dad agreed. She took a leave of stopped calling me mom and and packaging every single part absence from Honeywell to help started calling me Maureen,” the company makes. The tablets his transition to retirement, and she said. “Honestly, I don’t care replaced three-ring binders with she became president of Coon for it much. But that separation, static photos. Rapids, Minn.-based Steinwall that’s the price that the family Four of Steinwall’s 140 Inc. in 1985. business pays for keeping it employees work full time “When I did buy the business going for 100 years or multiple making the videos and from my dad, I lost a father, which generations.” measuring the results. The is kind of a strange thing to say, Keeping the family business company also produces self- but I gained a business partner,” going and growing has also directed orientation videos for said Steinwall, now one of only meant keeping it moving new hires.

64 PHOTO: COURTESY TECHMER PM John Manuck Chairman, CEO | Techmer PM | Clinton, Tenn.

ohn Manuck’s journey went from Brooklyn to L.A. to Japan before landing him in J Tennessee. PHOTO: COURTESY NATUREWORKS LLC Clinton, Tenn., where Techmer PM — the specialty plastics firm Manuck founded in 1981 — from $100 a barrel oil to $30 a is headquartered. It’s also where President Barack Marc barrel, NatureWorks has been Obama and Vice President Joe Biden paid a visit in EBITDA positive for that whole early 2015. Verbruggen period, month after month after Techmer had worked with the Oak Ridge CEO | NatureWorks LLC | month,” he said. “Believe me, I National Laboratory on 3-D printing and carbon Minnetonka, Minn. would not have been able to say fiber-filled plastics. So when the White House was that in 2006.” looking for a place to highlight advanced materials atureWorks LLC is like It’s been a tough road, he research, Oak Ridge nominated Techmer. the Tesla Motors of told a conference in April: The Obama and Biden took a look at a Shelby Cobra N plastics. decision to build a commercial sports car that was 3-D printed using Techmer’s Led by Marc Verbruggen, the plant in 2002, without much of a materials. company is one of the largest market, “got three CEOs fired.” “I don’t know how you can get more publicity in the U.S. making plastics The long view is key, than having the president and vice president tour from plants, rather than oil and Verbruggen said, because PLA is your place at the same time,” Manuck, 67, said. natural gas. a young material. Petrochemical The Brooklyn native had been working in NatureWorks has improved plastics have been around for plastics for more than 10 years when he started manufacturing and can now 50-plus years, and some took Techmer in Los Angeles. Manuck took a big step compete with traditional, decades to get significant in 1987 when Techmer partnered with a Japanese petrochemical plastics and with commercial positions. firm. $30-a-barrel oil, Verbruggen “We’re like a 15-year-old “Going to Japan at that time for me was like going said. who hopefully will get to 70, to Mars,” Manuck said. “But we had to find a way to “Through good times 80, 90, 100 years old,” he said. take the company to the next level.” and bad times, through high “For us, that’s a cause of great Today, Techmer is one of North America’s 30 oil and low oil, over the last optimism.” largest plastics compounders. two years, on that (decrease) � STEVE TOLOKEN — FRANK ESPOSITO

65 PHOTO: COURTESY RUBBER MANUFACTURERS ASSN. Anne Forristall Luke President, CEO | Rubber Manufacturers Association | Washington, D.C.

n some ways, Anne Forristall Luke is a STEELWORKERS UNITED COURTESY PHOTO: traditional choice to be the president and CEO I of the Rubber Manufacturers Association. In Trade Commission to other ways: not. Leo Gerard levy antidumping and Her decades of experience in several Washington President | United countervailing duties against sectors — including the government, PR and Steelworkers | Pittsburgh tire imports from Asia. The professional associations — is a typically broad, USW scored a major victory in varied background for the leader of a major ince becoming 2015 when Commerce decided manufacturing organization. president of the United to set duties against passenger But in other ways Luke represents something S Steelworkers union in and light truck tires imported new and innovative for the RMA, and not just 2001, Leo Gerard has fought for from China. because she is the first woman president of an middle-class jobs across many Despite the victory, the USW association representing a still predominantly industries, including rubber. has since said it wants reform male manufacturing sector. She speaks of her Gerard and his lieutenants in the process of bringing desire to raise the public profile of the U.S. tire at the USW have helped trade cases to the Commerce manufacturing industry. negotiate master bargaining Department, arguing that it “I want to create a greater appreciation of the agreements with many of the should be able to act before it value this industry brings to the customers and the major U.S. tire manufacturers, decimates domestic production communities we serve,” Luke said. including Goodyear, Michelin, and employment levels. Luke also has emphasized her desire to work Bridgestone, Cooper and The USW has filed two more with government agencies — especially the Yokohama. similar petitions to Commerce National Highway Traffic Safety Administration. More recently, the union for reviews on off-the-road tires This philosophy marks a change from most of has petitioned the U.S. imported from India and truck the past 25 years, when the RMA kept a low public Commerce Department and bus tires imported from profile. — MILES MOORE and the International China. — CHRIS SWEENEY

66 PHOTO: RUBBER PLASTICS& NEWS

of the firm decided to pull months, they started back Greg Nelson the plug on the synthetic as East West Copolymer & Chairman and CEO | rubber producing plant in Rubber LLC. East West Copolymer & Baton Rouge. The facility More than two years later, Rubber LLC | Baton Rouge, La. was historic, as it was one of the company has moved the original SR plants opened beyond startup phase and is any people talk about during World War II as part of looking toward the future, the importance of the war effort. employing about 150, or half M manufacturing jobs But Nelson didn’t want the number at time of closure. for the U.S. economy, but Greg the factory’s history to end “For 2016, we have contracts Nelson has done something there. He teamed with seven with pretty much all the about it. former managers at the facility customers we had before we He was CEO of Lion and some investors to buy shut down,” Nelson said. Copolymer when the owner the operation. In a matter of — BRUCE MEYER

67 Jody DeVere CEO | AskPatty.com Inc. | Thousand Oaks, Calif.

omen control a majority of the W decisions when PHOTO: COURTESY ASKPATTY.COM it comes to vehicle-related purchases, according to a number — features forums, articles, of surveys, yet they often can feel educational podcasts and a powerless and intimidated when database of certified female- walking into a car dealership or friendly car dealerships and auto repair shop. auto service centers that have AskPatty.com Inc. and undergone training on how to its founder, Jody DeVere, attract, sell, retain and increase have provided an answer to loyalty with women customers.

PHOTO: COURTESY DISCOUNT TIRE this glaring disconnect — Over the past decade, DeVere, empowering women with who has won several awards and knowledge about vehicles and spoken at numerous automotive Bruce Halle training retailers on how to better industry events, believes Founder | Discount Tire/America’s Tire | serve their female customers. AskPatty has had a great impact Scottsdale, Ariz. The website — created by on getting women’s voices heard DeVere and an advisory panel in the marketplace. hough his tire industry career began in a of female automotive experts — KATHY MCCARRON failed bid as a minority owner in a wholesale T tire and accessories business, Bruce Halle persevered through defeat to become one of the tire industry’s greatest success stories. Robert Gross The founder and chairman of Discount Tire/ Executive chairman | America’s Tire — recognized today as the world’s Monro Muffler Brake Inc. | largest independent tire and wheel retailer — Rochester, N.Y. opened his first outlet under the Discount Tire name in Ann Arbor, Mich., in 1960, with the uring his 17-plus years initial expectation of selling just five tires per with Monro Muffler day. He started out as the company’s purchasing D Brake Inc., Robert Gross agent, accountant, salesperson, service technician, has helped orchestrate three cleaning crew and sign painter. dozen acquisitions comprising

Now the Arizona-based dealership operates more than 500 retail tire and auto PHOTO: COURTESY MUNRO MUFFLER BRAKE INC. more than 900 stores across 31 states and exceeds service locations throughout the $4.2 billion in annual sales. eastern U.S. independent tire dealerships have Throughout his career, Halle has supported This strategy not only has sold their businesses to Monro. organizations such as the Halle Heart Center, transformed the one-time Gross, current chairman and Special Olympics, Arizona State University Cancer Midas mufflers-only franchise the company’s former president Center and Childhelp USA, among others. In 2014, operation into one of the nation’s and CEO, has concentrated on he was named a recipient of the Horatio Alger top three aftermarket tire and investor relations, strategy and Award, bestowed annually on leaders who succeed auto service/repair businesses, acquisitions — including the in the face of adversity and who are committed to it also has brought succession latest addition to Monro’s quiver, philanthropy and higher education. planning and “exit strategy” the Car-X Tire & Auto franchise — WILLIAM SCHERTZ into the limelight as a number of business. — BRUCE DAVIS

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General Motors proudly congratulates Crain Communications on celebrating 100 years of bringing business news to business people. Thank you for keeping all of our wheels turning. NATIONAL

Kevin Plank CEO | Under Armour | Baltimore

BY GARY GATELY

t Under Armour’s Baltimore A headquarters, huge whiteboards adorn the walls, reminding employees of Kevin Plank’s principles: “OVERPROMISE AND DELIVER!” “DICTATE THE TEMPO!” “DONE, DONE, DONE!” While other messages appear in black, one stands out in bold red letters: “DON’T FORGET TO SELL SHIRTS AND SHOES!” The sports apparel company Plank started out of his grandmother’s basement in 1996 — by giving football players synthetic fiber workout shirts that wicked away sweat PHOTO: COURTESY UNDER ARMOUR better than cotton — has grown into a $4 billion powerhouse. invested heavily in fitness app criticism as corporate welfare It has posted double-digit sales companies and vastly expanded for the billionaire Plank, but growth for 27 straight quarters; its engineering staff. the overall plan has garnered NBA superstar Stephen Curry’s Still unwilling to stop widespread support among kicks are on pace to eclipse sales pressing forward, Plank is now residents and high praise from of rival Nike’s LeBron James reimagining Baltimore through Republican Maryland Gov. line this year; and UA recently his real estate company’s Larry Hogan and Democratic signed the biggest shoe and proposed $5.5 billion Port Baltimore Mayor Stephanie apparel sponsorship partnership Covington project. The Rawlings-Blake. in NCAA history, a 15-year, redevelopment would turn Plank, a salesman to the core $280 million deal with UCLA. roughly 260 acres of largely who got his start in business But those statistics and desolate industrial peninsula hawking Valentine’s Day roses accolades aren’t good enough in South Baltimore into at the University of Maryland, for Plank, who is now looking millions of square feet of office has taken his pitch directly to several steps beyond athletic space, including a new UA citizens with a high-profile, apparel. Leaping off his latest headquarters. Then there’s a unprecedented print, TV, radio saying – “Data is the new oil” – retail component, 7,500 homes, and internet campaign touting the 44-year-old Plank predicts a hotel, 40 acres of parklands Port Covington and the more fitness apps will nearly double and a small stadium. than 26,000 jobs he says it the company’s revenue, to $7.5 A request for $535 million would bring. billion, within the next two in city bond financing for The campaign’s tagline: “We years. To get there, UA has infrastructure has drawn some will build it. Together.”

70 John Haugen General manager | 301 Inc. | Minneapolis

BY ALYSSA FORD

year ago, General Mills veteran executive John A Haugen was leading a specialized R&D wing of the Minnesota-based food giant. His team had introduced squeeze bottles of refrigerated pancake batter, K-cups that brew soup instead of coffee, and a snack subscription service called nibblr. But something wasn’t clicking. With the blessing of General Mills’ higher-ups, Haugen pivoted his entire department from product development to venture capital. Less than one year later, the new fund, 301 PHOTO: COURTESY301 INC. Inc., has five companies in its portfolio: Beyond Meat (vegan Mills person at their plant the know the people at Costco, protein), RhythmSuperfoods next morning. If we hadn’t done we’ve been working with (vegetable chips), GoodCulture that, they wouldn’t have been Kroger for decades. (high-end cottage cheese), Tio able to ship product — that’s Gazpacho (bottled soup) and how small their operation is. Q: What’s the most exciting Kite Hill (vegan cheese). product so far? Q: Do the funded startups have A: If you had asked me six Q: General Mills funded four offices at General Mills? months ago, or even three startups in five months. Is that A: No, I think the biggest months ago, I would never have the kind of pace we can expect? mistake we could make is to believed we would put money A: No, that’s a torrid pace. If bring them here. We want them on vegan cheese. Have you this were more of a hands-off to run their businesses. And ever tasted vegan cheese? Not investment model — “we’re you would not believe what so good. But these guys at Kite just going to put a bunch of we can get done in a half-hour Hill, somehow they’ve figured chips down and see what conference call, when I can out how to do great taste in 100 happens”— we probably would pull in the right person to help percent plant-based dairy. It’s have the capacity to do more. solve a problem in real time. incredible. I’m also excited about But we want to be really engaged If you think about the high what GoodCulture is going to with every startup, and put drama of being an early-stage do to the very sleepy cottage the expertise of a 150-year-old food entrepreneur, and you’re cheese category. We’re going food company at their disposal. scaling your operations, there to completely alter that mental When one of our partners are a lot of what-ifs. What if image of 70-year-old ladies lost their head of operations Costco calls? How do I navigate eating cling peaches with their unexpectedly, we had a General Kroger? Just so happens, we cottage cheese.

71 NATIONAL PHOTO: BLOOMBERG NEWS Stephen J. Hemsley CEO | UnitedHealth Group Inc. | Minnetonka, Minn. PHOTO: AP s CEO of the nation’s largest health insurer, Stephen J. Hemsley is one of the teenager in his parents’ garage. A most powerful and vocal agents of change Palmer Luckey However, Luckey has in the U.S. health insurance industry. Founder | Oculus VR LLC | shown himself to be far more An outspoken critic of the public health Irvine, Calif. than a technological tinkerer, insurance exchanges established by the articulating an ambitious Affordable Care Act, Hemsley, who has served veryone’s talking virtual vision for VR. In an interview as UnitedHealth Group’s CEO since 2006, has reality (VR) these days; with NPR, Luckey said VR wielded his influence to encourage changes to E Palmer Luckey is actually represents a bigger technological the health exchanges that would help ensure living it. Though he’s only a turning point than the Apple II, sustainability in the long term. few years into his 20s, Luckey Netscape or Google. “We can’t subsidize a market that doesn’t appear already has a resume that could While many think of VR as a at this point to be sustaining itself,” Hemsley said rival that of the technology new medium for entertainment, during a conference call in November. industry’s legends. Luckey said it also improves His comments on the insurer’s grave exchange He’s best known for founding communication and “reduces a losses, due in part to low enrollment and a shorter- the pioneering virtual reality lot of environmental waste that term, unhealthy population, and UnitedHealth’s company Oculus VR in 2012. we’re currently doing in the real subsequent withdrawal from most states’ 2017 Less than two years later, world.” insurance exchanges, has led the Centers for Facebook plunked down $2 As the VR market continues Medicare & Medicaid Services to strengthen the billion for the outfit. to blossom, look for Luckey to risk pool of the exchange enrollees, crack down on Luckey is also the inventor of potentially play a central role special enrollment periods, and propose changes Oculus’s Rift, a high-definition in devising new applications to improve the risk adjustment program — all head-mounted display that has and purposes that will unleash of which could help turn the exchanges into a emerged as the benchmark for the technology’s revolutionary profitable business for health insurers. the VR market. He created his potential. — SHELBY LIVINGSTON first VR headset prototype as a — JONATHAN CASSELL

72 had been waiting for this for a long time — was establishing the Academy Museum of Motion Pictures ... getting the space and an architect and putting the framework, the foundation, together. Technology also became a very important priority. ... Online voting suddenly allowed our members around the world — or who are working around the world — ... to engage in the Oscars and to fulfill our promise that the best of the best are voting on these awards.

Q: Let’s talk about diversity and the efforts that the academy has made to be in the forefront of that conversation. What is your role in that? A: That was part of the strategy from the very beginning as

PHOTO: AP well when I was brought on the academy. The board at that time, A: The mandate for me when I and the officers who hired me, Dawn Hudson came was to update the business were ... painfully aware that our CEO | Academy of Motion practices of the academy and membership was not as inclusive Picture Arts and Sciences | to help set the course with the or as diverse as they would have Beverly Hills governors for the future of liked it to be. ... this organization … what are So from the very beginning, BY PATRICK LEE the things that are the most we’ve been talking about, impactful, and what are the how do we communicate our hen the Academy priorities for this board? message about our membership of Motion Picture and about our programs? For W Arts and Sciences Q: How successful have the last five years, ... the new hired Dawn Hudson as its first you been in achieving those members classes have been chief executive in 2011, she was priorities? increasingly more diverse. recruited in part to increase A: We’ve been incredibly As the [Oscar] nominations diversity among its members. successful in setting those goals. came out, ... it felt like, “Wow, is Five years later, that issue is still So the first order of business this as diverse a slate as the film at the fore — particularly given was actually to get 17 different industry is now?” Well, the truth the public backlash over the lack branches in all aspects of the film [is] the film industry in the U.S. of diversity at the 2015 Oscars, industry to come together and isn’t quite ... diverse enough. and in the 2016 nominees. see their work as prioritizing the But we wanted to make sure the Hudson recently discussed academy as a whole. academy [was] … putting in her job and its goals: But what immediately became place all of the measures that we a priority for me and for many could possibly do to be a leader Q: What is your main mission? board members — because they for this industry.

73 NATIONAL PHOTO: GETTY IMAGES

Airbnb, Dropbox and Instacart, was the product.” Jessica long before anyone had ever As a co-founder herself, heard of them. Livingston is hoping to Livingston In 2005, Livingston quit her encourage more women to Co-founder, partner | job in investment banking and follow her lead. To that end, Y Combinator | started building Y Combinator she started the annual Female Mountain View, Calif. as one of four founders, Founders Conference in 2014. including her husband, Paul “Since I am in the business BY MADISON PARK Graham. Early on, the group was of funding first-time founders, I like a family, with Livingston need to encourage more women nown as the “Social setting a tone of authenticity. to actually start companies and Radar,” Jessica “The culture she defined help them make the jump,” she K Livingston has honed a was one of YC’s most important told Fortune. reputation for being able to spot innovations,” Graham wrote At this year’s conference, the fakers. on his blog in 2015. “Culture is held in April, Livingston also She’s a key reason why Y important in any organization, announced another bold move: Combinator has become the but at YC, culture wasn’t just She plans to take a year-long pre-eminent startup incubator how we behaved when we built sabbatical to reflect and spend that invested in companies like the product. At YC, the culture time with her family.

74 PHOTO: COURTESY THE MARCUS FOUNDATION Bernie Marcus

Philanthropist, founder | COURTESYPHOTO: COCA-COLA CO. The Marcus Foundation | Atlanta director for Western Europe, said ome Depot co-founder Bernie Marcus’ Lucie Austin she knew the campaign would impact can be seen in homes around the Marketing director for Western be a hit because of the way it H country and in Atlanta, the city he calls Europe | Coca-Cola Co. | allowed the iconic brand to make home. Atlanta a personal connection. While the company he led for years is flourishing “It wasn’t just about finding — Home Depot reported $88.5 billion in sales and oca-Cola Co. is known your own name but finding the the highest net earnings in company history last for its memorable names of those you know and year — the Atlanta area is also benefiting from his C marketing campaigns, love to share it with,” Austin said. largesse. Marcus contributed $250 million toward but perhaps nothing is more “It may have just been a common the 2005 building of the Georgia Aquarium, and memorable than seeing your name like David or John, but made news in March for his $75 million gift to own name on the bottle. when you associate that name Piedmont Healthcare. The latter donation — the That’s the magic of the “Share with your husband, son or friend, second-largest ever awarded to a community a Coke” campaign, which first it’s so much more valuable.” hospital in the U.S, according to Piedmont — will launched in Australia in 2011, The “Share a Coke” go toward building a world-class cardiac center at spearheaded by Lucie Austin, campaign was particularly Atlanta’s Piedmont Hospital. then Coke’s marketing director successful with teens and Marcus said his altruism stems from a desire to for the South Pacific. millennials, who shared images give back to the city that welcomed him with open That summer, Coke reported of their bottles on Twitter, arms in the 1970s. “Southern charm is a real thing,” that it sold more than 250 million Instagram and Facebook, he said. “We learned from the South how to treat personalized bottles and cans in proving expensive TV ads people.” a country with a population of aren’t necessary to successful Other major gifts from the Marcus Foundation 23 million. And when it came to marketing. include a $20 million award to Piedmont the U.S. in 2014, “Share a Coke” Since it first made a splash in Healthcare to found the Marcus Heart Valve boosted sales by more than 2 Australia, the “Share a Coke” Center in 2012, a $30 million donation to Grady percent after an 11-year decline, campaign has gone on to feature Health System in 2014 and a $25 million gift to according to the Wall Street thousands of different names in Florida’s Boca Raton Regional Hospital. Journal. more than 70 countries. — CHANEL LEE Austin, now marketing — BAYAN RAJI

75 NATIONAL

communicate anonymously Brooks within a short radius. Yik Yak has gone through Buffington & some changes recently, experiencing some management Tyler Droll turnover and rumors of slowing Founders | Yik Yak | Atlanta user growth. But they’re continuing to tweak the platform yler Droll and Brooks in hopes of reaching more users, Buffington haven’t adding handles and a chat feature T cracked their 30s yet, but — the No. 1 request from users they’ve already created a $400 — this spring. million company. The fraternity Speaking to the Charleston brothers and Atlanta natives (S.C.) Post and Courier in May, co-founded the hyper-local Buffington said the focus was social media app Yik Yak shortly on increasing engagement with after graduating from Furman the college market: “If we can University. Now, the company just kind of nail that in a really, reports that more than 2,000 really special way, then we can Tyler Droll, left, and college campuses are using do whatever we want to.” Brooks Buffington

the app, which allows users to — CHANEL LEE PHOTO: COURTESY YIK YAK

for game design, Florida Daryl Holt Interactive Entertainment Vice president and group Academy. chief operating officer | Holt foresaw the value Electronic Arts | Orlando, Fla. of using big data to engage players and drove its gaming aryl Holt’s potent mix applications. In 2013, EA of creative and analytic partnered with Synergy Sports D skills has propelled him Technology to use the same from what might have been a real-time data the NBA uses traditional consulting career to to scout teams and players to heading one of the largest and create “NBA Live 14,” which most innovative sports gaming updates with virtual data from studios in the industry. the NBA almost immediately. An accounting major who This year EA announced also studied digital animation, its first electronic sports Holt folded his own company initiative, beginning with

to join Electronic Arts in PHOTO: COURTESY ELECTRONIC ARTS “FIFA,” “Battlefield” and 2004, and his agile right- “Madden NFL.” Under Holt, and left-brained thinking NFL,” “Superman Returns,” EA’s goal is to make stars of all has paid off ever since. He “Tiger Woods PGA Tour” players — and even compete centralized creative functions and “NASCAR.” In 2004, EA with broadcast TV — by and streamlined production announced its partnership fostering growth in amateur, processes. He oversaw the with University of Central mid-level and professional development of such world- Florida to found the now tournaments. famous EA titles as “Madden top-ranking graduate school — HOPE WINSBOROUGH

76 PHOTO: COURTESY WAYFAIR.COM OF

five brands. However, the growing world of web-based Niraj Shah company remains focused on furniture shopping. They’re CEO, co-chairman, co-founder | fulfilling a simple promise: be even pioneering a virtual reality Wayfair | Boston the best home goods retailer on showroom. the internet, and don’t farm out The key to success, Shah BY CHRIS BENTLEY your software. said, is finding a niche that “By building our own isn’t already dominated by that hen Niraj Shah software solutions, we can other online shopping giant, and Steve Conine completely customize products Amazon. W co-founded the to our very specific business “We operate in a unique company that would become needs in a way that is not space where purchases are Wayfair, they were simply possible with off-the-shelf driven by customer experience, focused on meeting a specific solutions,” Shah said. “We can’t inspiration and specialized market need. In 2002, when afford to wait for solutions to be knowledge,” he said. “People … e-commerce was relatively available on the market.” That want great selection alongside new, their online shop offered strategy is paying off. Boston- beautiful, inspiring imagery and racks and furniture for home based Wayfair is on track to hire the support and expertise of entertainment systems. They’ve almost 1,000 new employees specialized service teams who since expanded to all kinds of at two new facilities in Maine really understand furniture and furnishings, reporting $2 billion this year, and the company other home products such as in sales last year across Wayfair’s continues to innovate in the lighting and flooring.”

77 NATIONAL PHOTO: COURTESY SXSW Roland Swenson Co-founder | SXSW | Austin, Texas PHOTO: COURTESY VOCALID OF ollege dropout Roland Swenson crafting the world’s first convinced The Austin Chronicle to Rupal Patel personalized digital voices. C launch a music festival championing Founder, CEO | VocaliD | To build a database of local talent in 1986. Thirty years later, he stands Boston sounds, the Massachusetts- at the helm of the largest music event in the world, based company solicited vocal orchestrating not only a performance schedule, but wo years after Rupal Patel “donations” from the internet. also film, interactive and educational satellites that received her doctorate Patel was heartened when have risen from the creative dust kicked up by more T in speech language thousands of people uploaded than 72,000 attendees. pathology, she happened upon speech samples, which the Swenson has overseen the addition of event two speech-impaired people company can draw on to craft segments that cater to diverse professional having a conversation through voices for their clients. Today, communities, including medical technology, robotic-sounding assistive VocaliD has more than 14,000 space exploration and transportation. He has devices. One was a young girl voice donors from 110 countries helped create a space for innovators leading the and the other a grown man, but and more than $1.25 million conversation around global environmental, social both had the same voice. in funding, according to Patel. and economic challenges. And he has welcomed “It was very jarring,” Patel They’ve only crafted seven new both Johnny Cash and a sitting president — Barack said, “seeing the same generic voices so far, but have orders for Obama — to the South by Southwest stage. sounding, synthetic voice 87 more this year, she said. In 2015, the ever-expanding festival and the coming out of two very, very And although the technology unofficial event co-locations that it has spawned different people.” that blends those myriad contributed $317.2 million to the native Texan’s From her research at recordings into a more human- hometown economy. The key to managing that Northeastern University, Patel sounding artificial voice could growth has been the development of a 200-person knew that people with severe be used for consumer purposes, team he can trust, Swenson says. speech disorders can feel like making interactions with “I’ve had to learn to not micro-manage people,” like they’ve lost part of their artificial intelligence more he said. “It’s not always easy to turn over a task you identity. Patel wanted to help palatable, Patel says she’s most think you do pretty well to someone else, and be them recover it. With a team of interested in the program’s open-minded enough to recognize they may have graduate students, she launched original intent: giving voice to found a better way to do it.” her first company, VocaliD, the voiceless. — CHRIS BENTLEY — CHARLOTTE WOOLARD

78 PHOTO: COURTESY SOUTHWEST AIRLINES SOUTHWEST COURTESY PHOTO: Gary Kelly CEO | Southwest Airlines | Dallas

outhwest Airlines made a name for itself as the fun, scrappy, rebellious airline that S turned its industry on its ear. In a 1993 report, the U.S. Department of Transportation coined the term “Southwest Effect” for the sudden

PHOTO: COURTESY NASCAR drop in airfares that occurred when the low-cost carrier entered a market. Now, 45 years after its first about the results, which make flight, the Dallas-based airline flies coast to coast Gene for photo finishes. Through the and, with its 2011 acquisition of AirTran Airways, first 12 races this year, the average flies internationally to destinations in the Caribbean. Stefanyshyn margin of victory was less than a “Their contribution to making travel affordable Senior vice president of second. That’s the third-closest cannot be underestimated,” said Henry Harteveldt, a innovation and racing margin since electronic scoring travel analyst at Atmosphere Research Group. development | NASCAR | began in 1993, according to a Leading the way is CEO Gary Kelly, a lifelong Concord, N.C. NASCAR spokesperson. Texan who started out as an accountant but climbed How did this come to pass? the ladder at Southwest over the last 30 years. he glory is all on the Stefanyshyn (rhymes with Fortune named Kelly among the top five most track, where NASCAR “definition”) has been tinkering underrated CEOs in 2015. He spearheads a team T drivers whip around with computational fluid of nearly 49,000 employees handling 3,900 daily turns like never before, thanks dynamics and wind tunnel tests flights on more than 700 Boeing 737 aircraft with net to better aerodynamics and tire to lower the downforce. The cars income topping $2.2 billion in 2015. The company composition. are much more maneuverable just celebrated its 43rd year of profitability, an The genesis is in the in the right hands, especially in impressive feat in a difficult industry. numbers and tests run by the high-speed turns. Trading under the stock symbol LUV, Southwest governing body’s extensive Speaking to the media in is also known for its upbeat, quirky culture, from the R&D department, led by Gene May, top driver Carl Edwards top executives on down. Kelly even joins in on the Stefanyshyn. The Canadian was ecstatic about the new fun every Halloween, dressing up in costume for the engineer and 30-year veteran of technology. “These cars, I’m company party. General Motors was recruited to telling you, when you drive them “They want to be a company known as a help breathe new life into stock sideways at 200 mph and you’re fun place to work,” Harteveldt said, noting that car racing — and so far, he can closing on people and you’re able flight attendants often sing or rap the safety share in a little of the glory fans to pressure them and race like announcement. “Front-line employees are are celebrating each weekend. that, that’s as good as it gets,” he encouraged to show their personalities.” NASCAR is also beaming said. — STEVE CRANFORD — NICHOLAS SAKELARIS

79 NATIONAL PHOTO: COURTESY TECHSTARS PHOTO: COURTESY AETNA

demand significant changes to Nicole Glaros Mark Bertolini the act that would bring more Chief product officer | Techstars | Boulder, Colo. Chairman, CEO | Aetna | coverage flexibility and rate Hartford, Conn. structures. n 2010, the founders of Sphero approached Even fellow Aetna executives startup accelerator Techstars with little more rom the chairman’s seat have been caught off guard I to offer than a passion for robots and mobile of a healthcare titan that by his words and deeds: After phones. Fast-forward five years, and their app- F pulled in more than $60 reading Thomas Piketty’s enabled Star Wars BB-8 is among the top 10 billion last year, Mark Bertolini “Capital in the Twenty-First bestselling U.S. toys. wields remarkable influence Century,” Bertolini stunned his “I’m exceptionally proud of them,” said Nicole over the health care industry executive team by successfully Glaros, who helped guide Sphero from the start and government officials. insisting on pay hikes and along with hundreds of other startups as chief While Aetna’s proposed $37 reductions in out-of-pocket product officer at Techstars. The startup accelerator billion acquisition of Humana medical expenses for the was founded in Boulder in 2006 and has since remains in limbo, Bertolini’s company’s lower-paid workers. expanded to several other cities around the world. opaque hints about a potential He also introduced free Glaros, who joined the company in 2009, still relocation from Hartford, yoga and meditation classes, gets a thrill from working in the heart of Boulder’s Conn., the company’s home treatments he relied upon as burgeoning startup scene. With the characteristic since 1853, has agitated local part of his therapeutic recovery enthusiasm of a startup executive — and a third- politicians. regimen following spinal cord generation entrepreneur — Glaros sees plenty more The unresolved HQ drama injuries in a 2004 skiing accident. opportunities for Techstars. isn’t the first time Bertolini “In any large organization, “From the little experiment in Boulder to 23 has set off public harrumphing there is a very strong resistance accelerator programs and 1,000 startup weekends from government leaders. to dramatic change,” Bertolini in 500-plus cities, we can make an impact on the When Bertolini questioned told the Wharton School of the entire world,” Glaros said. the sustainability of the University of Pennsylvania in Besides lending her voice to Techstars’ #givefirst Affordable Care Act, he said a January 2016 interview. “And campaign, Glaros also doles out wisdom on he received a call at home from there are a lot of people in a very her popular blog and promotes diversity in the Secretary of Health and Human large organization that try to workplace. When she’s not mentoring young Services Sylvia Burwell seeking protect the company from the entrepreneurs, she still finds time to trail-run, clarification. And he has boldly nut in the corner office.” mountain-bike and ski the Rocky Mountains. used a CNBC interview to -- PHIL HALL — PAUL KAROLYI

80 PHOTO: COURTESY ANGIE’S LIST

reviews site turn its first annual statement. “We’re about the Angie Hicks profit. Along the way, Hicks has whole experience and a job well Co-founder, CMO | endured enormous pressure done.” Angie’s List | Indianapolis from litigious shareholders The success of the weary of a metrics-driven Indianapolis company will any innovators business model predicated on continue to depend on muster a spark growing a national footprint the woman seemingly as M of brilliance that first. (The company is now in omnipresent in TV commercials disrupts an industry overnight, 253 markets.) as Progressive Insurance’s “Flo.” then move on to something She’s also championed Hicks and new CEO Scott else. Not so Angie Hicks, the investments in technology that Durchslag recently ditched namesake and chief marketing allow consumers to not only a longstanding paywall for officer of Angie’s List. read reviews online but also reviews, in part due to growing Hicks, who co-founded to purchase services over the competition from sites such as the company 21 years ago, is Angie’s List website. HomeAdvisor.com. If anything, a case study in perseverance. “We’re not just about Hicks’ role as the face of Angie’s Incredibly, not until last year did matching consumers to List will be more important than the 3-million-member consumer companies,” Hicks said in a ever. — CHRIS O’MALLEY

81 NATIONAL PHOTO: COURTESY LIVWELL John Lord Owner | LivWell Enlightened Health | Denver PHOTO: EMERGE AMERICAS hen John Lord left New Zealand in telecommunications hubs in the 1998, he had no idea he would end Manny Medina world. That laid the groundwork W up on the vanguard of a whole new Founder | eMerge Americas | for Terremark’s sale to Verizon industry built around legal marijuana. In fact, he Managing partner | Medina in 2011 for $1.4 billion. Since had never even used the stuff. Capital | Miami then, Medina has focused But he saw an opportunity, and in 2009, founded on helping emerging tech LivWell, which is a now a leader in Colorado’s n the early 1990s, Manny companies grow, with an eye marijuana retail industry, employing more than 550 Medina had an inkling the toward enriching the fledgling people and making more than $80 million in 2015. I internet would be a game tech ecosystem in Miami. “The one thing I continually underestimated changer and yearned to be a His private equity firm was the market cap,” Lord said, reflecting on his part of it. Then at the helm of Medina Capital has catapulted company’s fast growth. “There was no book to tell Terremark Worldwide, Medina seed-stage startups from you these things.” entered the tech world by way of Latin America, while eMerge Lord’s background in the notoriously litigious the real estate firm’s expertise in Americas, the tech conference world of baby products prepared him for success commercial office construction. he founded in 2013, has become in a highly restricted industry. Still, Colorado’s “I essentially started building the world’s only platform dynamic regulatory environment has posed a ‘telecommunications hotels,’ connecting technology challenge. which is where the internet companies across Europe and “It’s a bit of a white-knuckle ride,” he said. physically sits,” Medina said. the Americas. “Regulation now is being written at a rate where Constructing and managing “When it comes to cause-and-effect hasn’t got a chance to kick in.” worldwide data centers, technology, Miami never got With that uncertainty affecting LivWell’s bottom Terremark eventually landed any respect,” he said. “That’s all line, Lord is looking to expand beyond Colorado. a contract to build the NAP of changing.” Next in line for cultivation? LivWell Oregon. the Americas, one of the largest — NICOLE MARTINEZ — PAUL KAROLYI

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WHAT’S BLACK AND WHITE, READ ALL OVER AND JUST TURNED 100?

Congratulations from your friends and neighbors in Detroit. NATIONAL PHOTO: AP Steve Wynn Chairman and CEO | Wynn Resorts | Las Vegas PHOTO: AP teve Wynn didn’t need to put his name on management style. his own hotel to leave an indelible mark Tony Hsieh It’s run as a holocracy, a S on Las Vegas. No single person is more CEO | Zappos | Las Vegas controversial organizational responsible for transforming the strip from a system that gives all employees cheesy milieu of all-you-can-eat buffets to a world- ony Hsieh was only a say in operations. (And it class tourist destination. Wynn built his first 24 years old when he will continue to be, since the casino, the opulent Mirage, for a stunning $600- T joined Zappos after conditions of the company’s plus million in 1989, luring his competitors into a selling his internet ad company $1.2 billion sale to Amazon game of catch-up they’re still playing. LinkExchange to Microsoft for in 2009 include no corporate His Bellagio would have remained his crowning $265 million. interference.) Nobody is too glory had he not used some of the profit he received Hsieh (pronounced “Shay”) important to provide customer from a hostile 2000 takeover of his company by soon upended internet happiness at Zappos, according MGM to purchase the Desert Inn and replace commerce with the simple, to Hsieh, and that includes it with the stunning Wynn Las Vegas and, later, powerful notion of selling himself. Encore Las Vegas. But he didn’t earn his estimated happiness. It explains why The CEO, reportedly worth $2.8 billion net worth just by building nice things. 75 percent of the online shoe $840 million, lives in a trailer Nice is also the core principle guiding his empire. and clothing shop’s business is on the street by his company. “All of the razzmatazz and jazz we hear about repeat. Why should it matter He answers his own email from facilities and everything else doesn’t amount to if the shoes you buy don’t fit customers and can be frequently a hill of beans,” he famously said during a 2008 perfectly when you can send found strolling the streets of earnings call. “It’s customer experience that them back, no questions asked the downtown district his determines the longevity and endurance of these and no postage paid? Happiness investment has singlehandedly enterprises.” is also integral to the Zappos revitalized. — COREY LEVITAN — COREY LEVITAN

84 be compensated, and we won’t have it any other way.

Q: You have a great track record. What makes you so successful? A: I’ve been involved in music for ... [more than] 30 years now, if you include my DJ career. ... So the music aspect of it is there. When you mix that in with working with songwriters and recording artists in the infancy of their careers, and you help bring things to the table that can add something to that songwriter or artist’s career ... it tends to lead forward. And you’re fair with them in the business aspect as well — which is kind of where it falls apart at times. ... There’s 10 people who have spotted talent early and contributed to that talent’s career, but then ... it gets to the point sometimes

PHOTO: AP where that talent hasn’t been compensated in the right way, Group CEO Steve Cooper and that’s where the relationship Jon Platt has said the former DJ brings falls apart. Chairman and CEO | Warner/ a rare “combination of artistic It’s called “chemistry” for Chappell Music | Los Angeles sensibility and commercial a reason. ... People know that savvy” to the table. I’m a fair guy. ... My ethos ... BY PATRICK LEE Platt talked about his has always been: ... I don’t want business method in a recent the music business to change onsider Jon Platt a interview: me; I want to change the music rainmaker. Over the business. C course of his long Q: How do you deal with career in the recording industry, the disruptions in the music Q: Anything else? he has signed or developed industry? A: Someone told me years ago some of the biggest songwriters A: My main goal — which there’s no losers in anything. and artists in the business, is what has been my goal, as It’s only those who quit before including Jay Z, Kanye West, always — is that songwriters their turn comes. And so it’s Usher, Drake, Snoop Dogg and are treated fairly and really about perseverance. ... Any Beyoncé. compensated for their work. songwriter I sign, I sign them Warner/Chappell snapped … Because no matter what the because I think they write No. him up in 2012 after 17 years changes are in our business, 1 songs. And the reality is some at EMI, and Platt has since everything ... revolves around have had their number ones ascended to chairman and CEO. music, and music starts with ... and some haven’t had their No wonder, since Warner Music a song, and songwriters must number ones — yet.

85 NATIONAL PHOTO: HEIDI ROSS

Random House sales rep Karen 2011, it has become a hub for Ann Patchett Hayes, opening up shop while creatives and local authors, and Co-owner | Parnassus Books | most others were shutting their Patchett isn’t stopping anytime Nashville, Tenn. doors. The store is dubbed soon. Her brand-new novel, Parnassus, after the Mount “Commonwealth,” hits shelves nn Patchett is a warrior Parnassus of Greek mythology, in September, and she recently for books. which is a haven for literature, launched Parnassus’ mobile A Just a few years music and learning — exactly library, Pegasus, a traveling, ago, Nashville was starving for what Patchett desired the shop bright blue truck crammed with brick-and-mortar bookstores, to be. books — further proof that but it didn’t know it. With But Patchett isn’t just your independent bookstores can e-readers galore, many could average bookstore owner. She’s thrive among corporate giants. have assumed the hardcover and also a world-renowned author “You may have heard the paperback were dead. of seven novels and three news that the independent But not Patchett. nonfiction books, and has the bookstore is dead, that books are She recognized Nashville’s awards to prove it — including dead, that maybe even reading affinity for all things local, the Orange Prize for Fiction is dead,” Patchett wrote in The and fought back against and the PEN/Faulkner Award Atlantic in 2012. “To which I the corporate book world for her novel “Bel Canto.” say: Pull up a chair, friend. I have by partnering with former Since Parnassus opened in a story to tell.” — EMILY BILLS

86 PHOTO: AP PHOTO: AP

immigrants, Soon-Shiong made Brian Chesky Patrick his mark early, graduating from Co-founder, CEO | Airbnb | San Francisco medical school at age 23 and Soon-Shiong working as a surgeon before ith more than 2 million rentals available Investor, entrepreneur | founding two drug companies on nearly every continent, Airbnb has Los Angeles and developing the cancer W gone from air mattresses rented out of a drug Abraxane, now a staple of San Francisco apartment to an internet juggernaut atrick Soon-Shiong has treatment. He sold his initial drug valued at $30 billion. a net worth estimated companies for about $8 billion. After graduating from the Rhode Island School P at $11.8 billion, ranking Following that payday, of Design in 2004, Brian Chesky and his friend Joe No. 81 on Forbes’ list of world Soon-Shiong has taken several Gebbia were unemployed and trying to make ends billionaires. Though he started NantWorks subsidiaries public meet to pay rent in San Francisco. So they rented out as a surgeon, today he has with great success. His latest out sleeping space in their apartment. his hands on everything from IPO, for the biotech startup That simple idea became Airbnb, which today basketball to journalism to NantHealth, saw shares jump counts 60 million guests among its users — and technology. 32 percent over their offer Brian Chesky is the bane of hotels everywhere. The Soon-Shiong built his price on the first day of trading ultimate verdict on the company’s success comes wealth on a network of startup in June. Soon-Shiong also from Warren Buffett, who told Fortune, “I wish I’d pharmaceutical and healthcare maintains strong ties to Southern thought of it.” enterprises under the umbrella California. He owns 4.5 percent In contrast to the drama that often plagues of NantWorks. Based in Culver of the Los Angeles Lakers, and Silicon Valley startups with a revolving door of City, Calif., the company recently invested $70.5 million executives and high-profile fallouts, the young CEO employs data, technology in tronc Inc. (formerly Tribune has led a remarkably stable, laser-focused company and genetic information to Publishing), the parent company with its co-founders still intact. Introducing the improve the care of patients and of the Los Angeles Times— company’s new logo in 2014, Chesky wrote that pioneer treatments for cancer making him tronc’s second- “the rewards you get from Airbnb aren’t just and other diseases. The South largest shareholder. financial — they’re personal — for hosts and guests African-raised son of Chinese — PATRICK LEE alike.” — MADISON PARK

87 NATIONAL

vacationers, forcing other resorts to offer more than just nice rooms, golf courses or beaches. But its push for more exciting parks, rides, restaurants and attractions has upped prices dramatically — too high for many average Americans, some say, but necessary to keep up with the crowds and demand for ever more entertainment, the company says. Kalogridis has held leadership positions across the company, from EPCOT to Disneyland Paris to president of Disneyland. He was behind the introduction of fan favorites like EPCOT’s International Food and Wine Festival and breakfasts with Disney characters, and was part of the team that introduced the collectible pin program. Since taking the helm at Disney World Resort in early 2013, he has overseen a major makeover of Hollywood Studios as well as the transformation of Downtown Disney into a 120-acre retail

PHOTO: COURTESY DISNEY complex called Disney Springs. Accounts of his hands-on, the Orlando park in 1971, empathetic management George A. Kalogridis presides over a style—personally reaching vacation mecca that includes out to a dissatisfied visitor Kalogridis four theme parks and 29,000 or working as a janitor for a President | Walt Disney hotel rooms. The Magic day —have defined his storied World Resort | Orlando, Fla. Kingdom alone holds the title career at Disney. of No. 1 attraction worldwide, Considered an “operator’s BY HOPE WINSBOROUGH with 20.4 million annual operator,” he piloted a major visitors. reorganization that converted hose who know him best Since those early days, independent departments say George A. Kalogridis that empire has grown into into integrated “land”-based T is so passionate about a brand unequalled in the business units. Openly gay, Disney World the brand’s hospitality industry. Along he’s also devoted to LGBT actually become a part of with Disneyland, Disney rights and a cheerleader for him. A Disney “lifer” who World pioneered the once- the group’s major purchasing started out bussing tables at in-a-lifetime experience for power.

88 PHOTO: COURTESY WIZARD WORLD

loyal fans. If you saw ads for hits like “The Randy Malinoff The man who pulls the Fast and the Furious,” “King COO | Wizard World | strings is Randy Malinoff, Kong” or “Jurassic Park 3,” Los Angeles who was recently named chief Malinoff was the man behind operating officer. His 20-plus the curtain. More recently, hat happens when years of showbiz experience he served as a vice president you give people have quickly established him at Universal Music Group W a place to unfurl as a key player at Wizard Distribution (think Rihanna, a cape, wear a mask and World, which has capitalized Drake and Kanye West). He wield the weapon of their on a geeked-out pocket of was also co-founder of That’s It favorite character? Lines of pop culture to provide a place Media Group and held executive fans around the block and an where fans can not just dress up positions with K-Tel records. international empire. With as their favorite characters, but As his experience packs a a growing network of comic also buy merchandise and meet new punch behind Wizard book conventions around the their entertainment idols. World, America’s largest pop country, Wizard World has Prior to entering Wizard culture touring expo’s footprint created a community that World, Malinoff worked at is expected to reach even more bridges the gap between the Universal Studios as vice cities, larger crowds and bigger- entertainment world and its president of digital marketing. name actors. — EMILY BILLS

89 NATIONAL PHOTO: COURTESY J. CRAIG VENTER INSTITUTE

to create a synthetic life form. components of life.” J. Craig Venter Establishing Celera to His path to world renowned Founder, chairman and CEO | compete with one of the scientist was circuitous. J. Craig Venter Institute | most esteemed scientific “I was drafted off my La Jolla, Calif. research institutes in the world surfboard in 1965 and ended accelerated the sequencing up as a hospital corpsman in r. J. Craig Venter threw process, and in 2000, Venter Vietnam,” he said. “I went from down the gauntlet when and Collins jointly announced being a California surfer and a D he established a private that they had decoded (almost) lousy student to wanting to ... do company to sequence the human the complete set of human something meaningful with my genome – “the language in which genes. life, in part, to honor all those God created life,” as President Venter’s accomplishments people that I couldn’t help.” Bill Clinton put it. have focused on accelerating Now, in addition to Frustrated with the pace of science and discovery, and working toward the goal the Human Genome Project understanding “What is life?” of personalized genomic led by Dr. Francis Collins at After 20 years, he is getting medicine, he is pursuing using the NIH, Venter said that he closer to an answer at a synthetic organisms to produce could sequence the human molecular level. His research alternative fuels. It’s also genome five years earlier than group at Synthetic Genomics reassuring to know his other the NIH’s 2005 goal. It was an (of which he is the co-founder, company, Human Longevity, audacious claim, but Venter executive chairman and co- is continuing work to extend had already been the first to chief scientist) “designed a life the “healthy, high-performance sequence a living organism. form in the computer ... that lifespan” so he has more He would later become the would live and self-replicate,” time to make more scientific first to achieve genomic he said, “so we’re starting to breakthroughs. transplantation, and the first understand the fundamental — BRYNA KRANZLER

90 PHOTO: COURTESY NIKE INC. PHOTO: COURTESY SACRAMENTO KINGS

leaders said was still years away. Jeanne P. Jackson Chris Granger The arena also employs major Strategic adviser | Nike Inc. | Beaverton, Ore. President | Sacramento Kings | water conservation methods, and Sacramento, Calif. all of its food and beverages are he same personalized service that helped locally sourced. the Nike brand grow beyond the trunk of a or Sacramento Kings Meanwhile, the Kings T Plymouth Valiant from which founder Phil President Chris Granger, organization is two years Knight peddled shoes in 1963 now has advanced F all that glitters is royal into its “Sacramento Proud” the company’s lead in a retail environment purple, black, silver — and campaign, which was launched redefined by digital experiences. Jeanne P. Jackson green. as a thank-you to the fans who led the charge on that front, overseeing product Tasked with “relaunching” have supported the team for development and merchandising initiatives that the franchise after an aborted more than 30 years. It’s also a put technology at the center of the company’s $31 attempt to move the team to way to ignite community pride billion sales strategy. Seattle in 2013, the 15-year that goes beyond the basketball During her tenure, Nike developed its direct- NBA veteran helped implement court. During the 2015-16 to-consumer web presence and rolled out a “NBA 3.0,” the concept that season, the Kings contributed Nike+ mobile app that connects athletes to technology, globalization and more than $2 million to the coaching services as well as customized shopping basketball are key elements of community, worked with more experiences. It invested in new production change. His efforts to secure than 1,500 nonprofit groups and capabilities, including 3-D printing technology that the Golden 1 Center arena donated thousands of tickets could revolutionize the product design process and plan that kept the Kings in to area children, according to also allow Nike to manufacture individual fits for Sacramento resulted in a $500 Granger. specific customers. million downtown mixed-use “For us, ‘Sacramento Proud’ The overarching theme of Jackson’s work in the development project. is not simply a tagline — it is a apparel and footwear empire: simplify the shopping Granger also helped ensure calling,” said Granger, now in experience at the same time customers increasingly that the Golden 1 Center his third year as president. “We expect highly personalized products and services. demonstrates that forward strive every day to make our Although she passed the baton to longtime thinking includes green thinking. community a better place. We teammate Michael Spillane at the end of May, her When the arena opens in the love Sacramento and try to live value to the company is obvious as she continues to fall, it will be the nation’s first up to the mantra that we are in advise CEO Mark Parker. to run entirely on solar power, fact ‘bigger than basketball.’” — CHARLOTTE WOOLARD something that other industry — ALAN NADITZ

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that has seen her profile grow her role with Comcast Ventures Amy Banse right alongside the company in 2011, Banse has led the Managing director and head she has served for nearly three company’s investment into of funds | Comcast Ventures | decades. Over the course of her dozens of other companies, Philadelphia/San Francisco dynamic Comcast career, she cutting across a number of helped the company acquire sectors. n 1991, Amy Banse or launch numerous cable As a mother of four, she walked in the door at networks, oversaw the creation describes herself as “the I Comcast as an in-house of Comcast’s first digital media ultimate consumer,” and said attorney, responsible mostly division and, no matter what she leverages that perspective for programming acquisition. her role, has excelled in helping as she seeks out smart Twenty-five years later, she deliver more viewers, more investments. remains with the company, but customers and more profits. “I love technology and am to say that her responsibilities As managing director and drawn to consumer-oriented have expanded would be a gross head of funds for Comcast products that solve problems understatement. Ventures — Comcast’s private and make our lives better,” she Today, the Harvard-educated venture capital affiliate — said on Comcast Ventures’ Banse is considered one of the Banse plays a leading role in website. “That, for me, is a most powerful women in the identifying and developing some threshold filter. Will it make cable and tech industries, with a of the nation’s most promising a life easier, happier, more long record of accomplishment tech startups. Since she assumed efficient?” — TIM HYLAND

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Crain Communications Still growing strong Congratulations to the Crain Communications family who have delivered the important stories that have shaped the business landscape for 100 years. We look forward to another century of inspiration and insight from their unique worldview.

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