Business & Finance

2023 Fortune 500: Fresh Faces and Record Female Leadership

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The 69th Fortune 500 ranking was recently announced, showcasing the largest corporations in the United States based on their fiscal 2022 revenues. This year, the revenue threshold to make the list rose by 13%, reaching $7.2 billion, a significant leap from the previous $6.39 billion. This crucial announcement reveals not only the dynamism of American corporations but also provides a snapshot of the changing face of leadership, particularly in regard to gender diversity.

Fortune 500 List: An Overview

This year, Fortune 500 companies represent a massive two-thirds of the U.S. GDP with a whopping $18 trillion in revenues, registering a 13% growth rate. However, profits have seen a dip of 15%, falling for the second time in the past three years. Texas retains its top spot as the home to the most Fortune 500 companies for its second consecutive year, while California has risen to the second position, pushing New York to the third spot. The top ten companies on the 2023 Fortune 500 list are as follows:

  • Walmart
  • Amazon.com
  • Exxon Mobil
  • Apple
  • UnitedHealth Group
  • CVS Health
  • Berkshire Hathaway
  • Alphabet
  • McKesson
  • Chevron

New Entrants and Notable Performers

Forty-five new companies joined the 2023 Fortune 500 list, generating a combined revenue of $146.2 billion and averaging a growth rate of 52.6%. This year’s list saw a blend of companies making their debut due to various factors, including corporate mergers, spinoffs, and even simple address changes. Notably, some companies achieved this milestone through organic revenue growth alone. Key performers like Airbnb saw a 35% increase in dollar sales from rentals, while Skechers celebrated a second consecutive year of record sales. The software company ServiceNow also experienced a sales boost thanks to the remote work trend.

Here are some of the notable new entries in detail:

Coupang: The South Korean e-commerce giant entered the list at No.195 after moving its headquarters from Seoul to Seattle. Despite reporting a loss, its revenue reached $20.6 billion, marking an 11.8% YoY increase.
Kyndryl Holdings: This IBM spinoff, listed at No.225, marked its first full year as an independent company, posting $18.3 billion in revenue.
Airbnb: Experiencing its first profitable year in a 15-year history, Airbnb entered the list at No.450 with $8.4 billion in revenue and a remarkable 40.2% YoY increase.
Skechers: Known for its popular sneakers, Skechers debuted at No.488 with a revenue of $7.4 billion, achieving a YoY increase of 18%.

Female Leadership Hits an All-time High

In a remarkable milestone for the Fortune 500 list, the 2023 edition revealed a record 10.4% of the listed companies being led by female CEOs. This reflects an 18% rise from the previous year, totaling 52 women at the helm of these influential corporations. Notably, among the fresh faces on this year’s list, several women CEOs made their debut.

Carrie Wheeler: The internally promoted CEO of Opendoor joined the Fortune 500 list this year.
Maria Black: Another internal promotion; Maria Black now leads ADP as CEO.
Priscilla Almodovar: Almodovar, an external hire, now heads Fannie Mae as CEO.
Mary Dillon: Dillon, the former chief of Ulta, began her second stint leading a Fortune 500 company when she took over Foot Locker.

However, it’s not all good news. Several female CEOs exited the Fortune 500 cohort when their companies dropped off the list. For instance, Clorox CEO Linda Rendle is no longer among this year’s group, as the company fell below the revenue threshold for inclusion.

Moreover, while the number of female CEOs is at a record high, the number of women of color in these leadership roles remains few. Notable exceptions include Fannie Mae’s Almodovar, Walgreens’ Roz Brewer, TIAA’s Thasunda Brown Duckett, AMD’s Lisa Su, and Yum China’s Joey Wat.

Conclusion

The 2023 Fortune 500 list provides an exciting insight into the shifting landscape of American corporations and leadership. From new entrants to the rise in female leadership, this year’s list presents a promising outlook for the future of diversity and growth in U.S. corporations.

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