Fortune USA september 15 2016

SEPTEMBER 15, 2016 FORTUNE.COM Is Hillary Good for Business? 100 AN INSIDE LOOK AT HER PLAN FOR THE ECONOMY Fastest Growing Companies in the World 50 MOST POWERFUL WOMEN AND WHAT WE CAN LEARN FROM THEM THE ACCELERATORS INVESTING BUBBLE WATCH 10 SMOKING HOT COMPANIES AUTO STOCKS GET READY TO REV THE TRENDS ABOUT TO POP P 156 P 59 P 18 INT’L STOCKS IEFA INSPIRED BY ADDING FAMILY TO THE FAMILY U.S STOCKS IVV U.S BONDS AGG Build for your future with iShares Core funds Essential building blocks for the heart of your portfolio at 1/10th the cost of typical mutual funds Smaller fees mean bigger dreams Start building at iShares.com/build INSPIRED TO BUILD Visit www.iShares.com or www.BlackRock.com to view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully before investing Investing involves risk, including possible loss of principal 'LYHUVLƓFDWLRQDQGDVVHWDOORFDWLRQPD\QRWSURWHFWDJDLQVWPDUNHWULVNRUORVVRISULQFLSDO%X\LQJDQGVHOOLQJ VKDUHV RI (7)V ZLOO UHVXOW LQ EURNHUDJH FRPPLVVLRQV 7KH L6KDUHV IXQGV DUH GLVWULEXWHG E\ %ODFN5RFN ,QYHVWPHQWV //& WRJHWKHU ZLWK LWV DIƓOLDWHVŏ%ODFN5RFNŐ k%ODFN5RFN$OOULJKWVUHVHUYHGiSHARESDQGBLACKROCKDUHUHJLVWHUHGWUDGHPDUNVRI%ODFN5RFN$OORWKHU PDUNVDUHWKHSURSHUW\RIWKHLUUHVSHFWLYHRZQHUVL6 2nd-largest auto insurer 97% customer satisfaction 24/7 licensed agents Helping people since 1936 The other guy The choice is yours, and it’s simple Why enjoy just one cookie when there’s a whole stack in front of you? b The same goes for car insurance Why go with a company that offers just a low price when GEICO could save you hundreds and give you so much more? 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B y jennifer reingol d 84 hail , mary General Motors CEO Mary Barra has led the carmaker on an epic comeback ride But it might take more than a miracle worker to lift the company’s stock B y Paul Ingr a ssi a Plus: Barra talks with Fortune editor-at-large jennifer reingol d about what has changed at GM— and what’s next 90 120 more than skin deep Ulta Beauty has built a fastgrowing hair and cosmetics empire in America’s strip malls Can it go toe-to-toe with much bigger competitors? That’s up to CEO Mary Dillon b y phil wa hb a 128 the smart sting of sam Bee The Canadian comedian has replaced Jon Stewart as America’s most trenchant political commentator Her secret? Not hiding her frustration B y erin griffi t h 132 googlegetsdisciplined The search-engine behemoth has spent billions in the quest for its next hit Now Wall Street veteran Ruth Porat has come aboard to help Google—and its parent company, Alphabet—get more bang for the buck Can she get their “smart creatives” to fall in line? B y l een a r a o 110 ann-marie campbell believes in you 141 As Home Depot looks to the web to help it squeeze more sales out of its stores, the 400,000 associates who work in the retailer’s 2,276 locations look to one of their own to lead them B y el l en mcgir t most powerful women: international Our rankings of the most powerful businesswomen based outside the U.S b y rupa l i a ror a , erik a fr y, audre y shi, a nd cl a ire zil l m a n the list 116 144 B y k ris t en bel l s t rom, erik a f r y, be t h k o w i t t, mich a l l e v-r a m, l een a r a o , jennifer reingol d , a nne va nderme y, phil wa hb a , jen w iec zner , a nd va l en t in a z a r ya lighting up ge leading through chaos Vice chair Beth Comstock has an ungainly portfolio but a simple mission: infusing the future into a venerable company B y Geoff Colv in Turkey’s aborted coup is only the latest challenge for Güler Sabanci, the woman behind one of the country’s largest conglomerates B y erik a fr y ON THE COVER: PHOTOGRAPH FROM TRUNK ARCHIVE September 15, 2016 FOR T UNE.COM SEP T EMBER 15 , 20 16 V OL UME 174 NUMBER FEATURES 174 74 151 158 160 174 ishillary goodfor business? Fortune’ s 100fastestgrowing companies 30years offastestgrowing companies Swimming upstream it’sjeffrey katzenberg’s future Too fast to be stopped: 2016’s top three-year performers in revenue, profits, and stock returns As our list reaches the three-decade milestone, we highlight some of the highs … and lows along the way To win the nomination, Clinton tacked way left on trade and ratcheted up her anti–Wall Street rhetoric But insiders and experts say her policies are progrowth A clear-eyed look at her plan B y t or y ne w m y er FOR T UNE.COM B y sco t t de c a rl o , dougl a s G el a m, v i v i a n gi a ng , k at rin a k a uf m a n, a nd k at hl een sm y t h September 15, 2016 Can a Bible-studying, love-peddling showman save SeaWorld … from itself? B y Erik a fr y His career as a studio mogul just ended with the sale of DreamWorks Animation But Katzenberg has shaped some of the most important changes in the movie industry over the past two decades—and he’s not done yet B y mich a l l e v-r a m PHOTOGRAPH BY MICHAEL LEWIS 132 F O R T U N E • SE P T EM B ER 15 , 20 MOST POWERFUL WOMEN NO 13 2016 RUTH PORAT CFO, Google GETS DISCIPLINED By Leena Rao S EP T EM B ER 15 , 20 • F O R T U N E THE SEARCH-ENGINE BEHEMOTHHAS SPENT BILLIONS IN THE QUEST FORITSNEXT HIT.NOW WALL STREET VETERANRUTH PORAT HAS COME ABOARD TO HELP GOOGLE—AND ITS PARENT COMPANY,ALPHABET— GETMOREBANGFORTHEBUCK CANSHE GET THEIR “SMART CREATIVES”TO FALL IN LINE? 133 MOST POWERFUL WOMEN 2016 board “We could all see her hand was very swollen and black and blue,” recalls Hutham Olayan, a senior executive at Saudi conglomerate Olayan Group and a longtime board member But Porat “was presenting as if nothing had happened.” Porat’s shoulder remained painful for months, but it didn’t keep her from traveling A few weeks after the accident, she flew to California on a trip that helped her land one of the most prominent and difficult jobs in technology—becoming CFO at Google and helping the tech giant transform itself as it approaches its third decade A high tolerance for pain isn’t literally a job requirement for most leaders But over a career at the highest levels in corporate finance, Porat has been equally unflappable, navigating physical obstacles and fighting great metaphorical discomfort—the race-the-clock stress of the financial crisis, the tension of negotiations among big-ego executives, and now the culture clash of imposing financial discipline at tech’s biggest idea factory In doing so, Porat, 58, has the rare distinction of having been one of the most powerful women in both finance and technology—two industries in which women have struggled to reach senior positions Porat’s work ethic stands out even by the caffeinated standards of Wall Street But she far outshines the pack, according to former Morgan Stanley CEO John Mack, in her ability to reason her way through the most difficult financial problems She matches that analytical rigor with an approachability and warmth that make her a consummate boardroom diplomat “Ruth is the only person who can deliver bad news to me, and I’ll still like her,” says Jeff Immelt, CEO of GE After nearly 30 years in finance, Porat now calls a different industry her home At Google, where she started in May 2015, Porat has traded suits and heels for hoodies and jeans She jumped immediately into the task of restructuring Google under a new corporate umbrella, Alphabet—and showing investors how much the company was earning from and spending on its core search and ads business on the one hand and its “moonshot” projects on the other FINANCIAL ENGINEER Porat led Google’s reorganization under the holding company Alphabet last year; since she joined the company in May 2015, its stock price has risen more than 40% S didn’t stop Ruth Porat from setting out for her beloved spinning class But black ice kept her from getting there Early one Sunday in January 2015, Porat slipped and fell near her home on Manhattan’s Upper West Side, shattering her left shoulder blade After she rushed to an emergency room, doctors told her she would need immediate surgery Wrong answer Porat was the chief financial officer of Morgan Stanley, whose annual earnings call was two days away Instead of going under the knife, she went to her office, arm in a sling Porat refused painkillers, saying they would impair her judgment, and put in two long workdays before the Tuesday morning call Only after that did she go in for surgery—driving straight from the office to the hospital But within days she was back in Midtown Manhattan, explaining the company’s results to Morgan Stanley’s 13 FOR T UNE COM UBFREEZING TEMPERATURES September 15, 2016 PHOTOGRAPH BY WINNI WINTERMEYER So far she has given shareholders plenty to celebrate After her first earnings report, in July 2015, Google’s market value increased $60 billion in a single day, the largest such gain ever for a U.S company In all, Google’s stock (now Alphabet’s) is up more than 40% since Porat switched to Pacific time “No normal person could walk into a massive restructuring … with new subsidiaries and compensation and be completely fine,” says Alphabet chairman Eric Schmidt, who calls Porat “extraordinary.” Still, the Alphabet reshuffle is just one step in a long-term transformation, one that puts Porat at the center of a contentious struggle over Google’s future For all its impressive innovations, from the Android operating system to advances in artificial intelligence, Google still gets about 95% of its revenue from online advertising, and industry watchers believe it will inevitably lose its edge there as rivals grow stronger “The clock is ticking on Alphabet’s dominance,” says independent technology analyst Rob Enderle Google needs another hit—ideally from one of the nonadvertising businesses now labeled Other Bets Inventing the next breakthrough isn’t Porat’s job, but as CFO, she’s the one leaning on the inventors to show results And that’s where the tension lies Under Porat’s scrutiny, those business units are facing unprecedented pressure to bring their costs in line with their revenue Schmidt and Google founders Larry Page and Sergey Brin say such discipline will help Google spot winners more efficiently But some of the company’s “smart creatives” fear that Alphabet could inadvertently strangle the next great innovation in its infancy, in the name of fiscal prudence Porat herself recently told an audience that “you can’t cost cut your way to greatness.” (She declined to speak on the record for this article.) Yet that principle hasn’t stopped the company from cutting, and a recent string of executive departures suggests that some cuts are drawing blood In short, the hoodie honeymoon phase is over to Silicon Valley was in fact a homecoming She was born in England, but her family moved to Palo Alto when she was a child, when her father joined Stanford’s SLAC National Accelerator Laboratory Dan Porat, a Holocaust survivor who never earned a high school diploma, became an accomplished physicist who authored more than P ORAT’S TRANSITION “RUTH IS THE ONLY PERSON WHO CAN DELIVER BAD NEWS TO ME, AND I’LL STILL LIKE HER.” 40 scientific and technical papers Frieda Porat, Ruth’s mother, was a psychologist, and Ruth never doubted she would have both a family and a career Her love for math and problem solving led Porat to Wall Street After graduating from Stanford and from business school at Wharton, Porat joined Morgan Stanley as a junior mergers-and-acquisitions banker in 1987 She hit her stride in the mid1990s after becoming head of Morgan Stanley’s technology banking team, just as Wall Street was growing infatuated with the shiny new Internet Porat worked closely with Mary Meeker, Morgan Stanley’s influential tech-stock analyst, who’s a confidante to Porat and godmother to her three sons (Porat and securities lawyer Anthony Paduano married in 1983.) At a time when tech analysts tended to be exuberant bulls while bankers were more skeptical, “Ruth was the oil in the machinery” that helped the team agree on which transactions to back, says Joe Perella, then head of Morgan Stanley’s investment banking Porat and Meeker could be an irresistible sales force, bombarding tech executives with data and ideas to win the right to lead their stock offerings But Porat also had no problem telling startups to slow down and prove their business models before going public Mack eventually promoted Porat to vice chairwoman of investment banking—a job that gave her influence with bigger companies When Immelt first met Porat, he had just succeeded Jack Welch at GE “When bankers would visit, they would take the first 30 minutes and tell me Jack Welch stories, like that was supposed to make me feel good,” Immelt recalls “Ruth never did that.” With Immelt, too, Ruth earned respect by advising against some deals, even when saying yes could have reaped big fees for Morgan Stanley When GE spun off insurance unit Genworth in 2004 in a $2.8 billion IPO, Porat pressed Immelt to set the opening share price lower, arguing that the stock would flounder if priced too high “CEOs hate to hear shit like that,” Immelt says “But she was right.” September 15, 2016 JEFF IMMELT CEO, GE FOR T UNE COM 135 MOST POWERFUL WOMEN THE RÉSUMÉ: BY THE NUMBERS AND BEYOND 2015 CFO, GOOGLE, ALPHABET 2010 CFO, MORGAN STANLEY 2006 GLOBAL HEAD OF FINANCIAL INSTITUTIONS GROUP, MORGAN STANLEY 2003 VICE CHAIRMAN, INVESTMENT BANKING, MORGAN STANLEY 1999 GLOBAL HEAD OF TECHNOLOGY BANKING, MORGAN STANLEY 1996 GLOBAL HEAD OF TECH EQUITY CAPITAL MARKETS, MORGAN STANLEY 136 FOR T UNE.COM 2016 In 2006, Morgan Stanley assigned Porat to its financial institutions banking business, which helped big banks raise capital That meant she was, in effect, sitting in a lifeguard tower when the financial-crisis tidal wave made landfall In June 2008, Mack received a call from Hank Paulson, then the Treasury secretary, who was assembling a team to help the ailing mortgage giants Fannie Mae and Freddie Mac “I need the best minds you have to help figure out what to do,” Paulson told Mack Mack sent two top bankers, Porat and Bob Scully When Porat arrived in Washington, Paulson told her, “This is going to be the most exhausting and rewarding thing you ever do.” Porat and Scully designed a plan to put the two entities under conservatorship, with the feds taking over their management—the only way, Paulson says today, to provide “a very necessary long-term guarantee” to keep the mortgage market liquid Executives at Fannie Mae and Freddie Mac bitterly opposed the move, but it very likely kept the Great Recession from getting even worse “I can’t tell you how many times Paulson called to thank me for giving him Ruth,” Mack says Paulson also tapped Porat to help rescue insurance giant AIG When she returned home late one night to shower during that ordeal, a former colleague recalls, she found a collage of Post-it notes of support waiting in the kitchen; Porat’s 11-year-old son wrote, “Fix this so I can have my mommy back.” Porat’s Washington experience helped her earn a promotion to chief financial officer, in January 2010 The ensuing years weren’t great for Morgan Stanley—its profits have lagged since the financial crisis—but Porat earned plaudits for stabilizing its finances and helping it meet government “stress tests.” She also showed a knack for lightening the mood When the staff would work weekends and nights to prep for earnings reports, for example, Porat would blast pop music and sing along was ready for a change She had been considered as a candidate for deputy Treasury secretary but withdrew rather than undergo a banker-bashing confirmation hearing As a trustee at Stanford, she was making more trips to the West Coast, and colleagues say she felt nostalgia for Palo Alto, where her father still lives Mack encouraged Porat to reach out to Bill B Y LATE 2014, Porat September 15, 2016 Campbell, the longtime top adviser to Google and Apple One Saturday in February 2015, Porat visited Campbell at his Palo Alto home to talk about a career change As Campbell later told Fortune (in an interview before his death this April), Porat had one stipulation: She didn’t want another CFO job Campbell responded, “Well, I have the perfect job for you How about the CFO of Google?” What Porat hadn’t known was that Google’s then-CFO, Patrick Pichette, was leaving—and that her work during the financial crisis had impressed Google’s leaders Porat told Campbell she was intrigued, and word got around fast Almost immediately after she left Campbell’s house, she got a call from Page’s assistant, setting up a meeting The courtship was quick too: Less than a month after her visit with Campbell, Porat had a job offer, with stock and bonuses that brought her hiring package to almost $70 million to crisis-era Wall Street may sound like comparing a mosquito bite to a heart attack But even successful executives have nightmares, and at Google those involve the company becoming the next Yahoo or Nokia—tech bellwethers that fell behind as the industry’s landscape changed That’s why the eventual success of Other Bets innovations matters so much Investors, too, want assurances that Google’s research is paying off When the company went public in 2004, Page and Brin publicly declared that Google would never sacrifice long-term goals in response to pressure from shareholders Twelve years later, with Google one of the world’s most widely owned stocks, the company can no longer say, “Just trust us.” On Porat’s first day at Google, Page explained to her his vision for a holding-company corporate structure and told Porat that implementing it would be her top priority In August 2015, three months after Porat had started, she and Page announced the creation of Alphabet Google became a subsidiary of Alphabet, as did most of its smaller, research-driven units, including connected-home business Nest and Google Fiber, its home broadband initiative Alphabet now discloses revenue and profits for two categories: Google and Other Bets The Google bucket includes not only the advertising business but also cloud services and Android In the second quarter of this year, that C OMPARING TODAY’S Google JEFFERY S A LT ER—T HE NE W YORK T IMES/REDUX bucket accounted for 99.1% of Alphabet’s $21.5 billion in revenue; all the Other Bets, just 0.9% Porat and her investor-relations team are explaining these changes to big investors in 15- to 30-minute “office hours” meetings—standard procedure for many companies but previously unheard-of at Google “I was shocked when I met Ruth for the first time, and she actually asked our team, ‘What can Alphabet better?’ ” says Eric Sheridan, managing director of UBS’s Internet and interactive entertainment research group Porat won more investor goodwill in October 2015 by announcing a $5.1 billion stock buyback But inside Alphabet, the new order is generating more tension than elation Porat’s team meets regularly with each Other Bets business, walking them through their units’ spending and earnings, and urging them to make tradeoffs to bring them in line This is Corporate Finance 101, but it represents a drastic shift—and an uncomfortable one for many project managers “Ruth is approachable and warm, but she is persistent in what she wants—and she asks direct questions,” says one Google employee, implying that such bluntness is, itself, new Current and former employees also say the scru- tiny goes hand in hand with the kind of cost cutting companies that aren’t Google have endured for decades Some cuts are relatively minor: Employees are encouraged to use video conferencing instead of traveling to meetings, for example But others have deeper strategic implications One source close to the company says it’s now difficult for Other Bets to get new hires approved The Bets are also being told to be self-sufficient administratively: They can rely on Alphabet for functions like legal counsel, human resources, and public relations, but only if they pay Alphabet for the services (One Other Bets subsidiary was billed $500,000 for a year’s worth of PR help.) If these units were independent companies, of course, they’d be shouldering these costs on their own But within Alphabet, they represent unfamiliar constraints, and for some, a signal that the culture Google was built on—focusing on innovation over profits—is dissipating Google executives reject that assertion Schmidt, the chairman, acknowledges that the focus is new but says it allows Alphabet to invest more efficiently in its winners Alphabet has been aggressively hiring engineers for cloud-computing and artificial-intelligence projects, for example September 15, 2016 THE BIG TWO OF INTERNET 1.0 Porat (right) with famed tech-stock analyst Mary Meeker in 1999, when Porat headed Morgan Stanley’s technology banking team The duo helped the bank become a dominant force in tech IPOs FOR T UNE COM 137 MOST POWERFUL WOMEN 2016 l l“The cost cutting is real, and it’s the right thing to be done, and it’s driven by [Porat],” Schmidt says “Before she was there, we had lost discipline.” But is discipline really the problem? In the most recent quarter, Other Bets lost an ugly $859 million on $185 million in revenue Still, when you consider that Alphabet generated $7 billion in free cash that quarter, the losses seem like something the company could easily absorb Cost cutting, says Enderle, the analyst, “is like taking painkillers when you are sick At some point you are going to have to address what is making you sick.” The real issue at Alphabet, he adds, is that “what they are vspending money on isn’t successful.” M 138 FOR T UNE COM September 15, 2016 The Alphabet reorganization essentially separated Google’s core moneymaking operations from its researchoriented and experimental “moonshot” divisions Now those companies, known as Other Bets, are under pressure to be more financially self-sufficient Here’s a guide to what they’re doing and how they’re faring NEST sells “smart home” features like smartphonecontrolled thermostats, alarms, and cameras It’s bringing in revenue (reportedly $360 million in 2015), but tensions have mounted over slow product development and sales targets FIBER aims to offer gigabitspeed Internet and TV service via fiber-optic connections Earlier plans called for Fiber to serve million users by 2016, but that figure has reached only several hundred thousand, and layoffs have been reported VERILY, Alphabet’s lifesciences unit, has projects that include a huge genetic data-collecting initiative The unit has performed well financially, thanks to deals with medical and pharmaceutical companies, but has struggled to retain talent SELF-DRIVING CARS from Google are now being tested on California roads The tech hasn’t been commercialized yet, but the team, a unit of X, is seeking partners among automakers and recently signed a collaboration with Fiat Chrysler Automobiles X, formerly known as Google X, is the starting point for many of the search giant’s moonshot ideas, including Project Loon (above), which brings Internet connectivity to rural areas using massive balloons Cost controls have reportedly slowed down hiring at X, and an executive shake-up has been reported CALICO, led by former Genentech CEO Arthur Levinson, is devoted to antiaging research, with a focus on the biological and genetic factors that determine human life spans Google has invested $240 million in Calico, but little is known about its current commercial prospects COUR T ESY OF GOOGLE ERITED OR NOT, Alphabet’s reforms have pushed some managers toward the exits Nest founder Tony Fadell left in June, not long after telling tech website the Information that “the fiscal-discipline era has now descended upon everything.” (He remains lan Alphabet adviser.) Three executives from Google’s self-driving-car unit left in August, as did Bill Maris, founder and head of Google’s venture arm And there have been reports of an executive shakeup at X, Alphabet’s research lab The departures have prompted plentiful chatter around Palo Alto But having navigated the battles of the financial crisis, Porat knows how to tune out noise She also has the kind of personal experience that keeps corporate infighting in perspective: She has beaten breast cancer twice and has been in remission since 2003 As Meeker, now a partner at venture capital firm Kleiner Perkins, puts it, “Don’t underestimate the leadership talent that develops from crisis management.” That talent has made Porat an important voice for Google, inside the company and out, at a time of momentous change This past January, at the World Economic Forum summit in Davos, Switzerland, Porat and Schmidt hosted a dinner for European leaders They decided that Porat would make introductory remarks and then yield the floor to Schmidt But as Porat began talking, Schmidt realized she was giving a far better speech than he could “The way she spoke showed she knew Google so well,” he recalls v For a moment, Schmidt wasn’t sure what to But he quickly arrived at an answer: “Just shut up and listen to Ruth.” LONG-SHOT BETS FEEDBACK: LE T T ERS@FOR T UNE.COM At Ally, we don’t care just about your finances We care about you And nothing stops us from doing right by both See? We told you it wasn’t creepy         ©2016 Ally Financial Inc MOST POWERFUL WOMEN INTERNATIONAL FOR THE PAST TWO YEARS, Fortune has ranked the most powerful businesswomen in two global regions—Europe, Middle East, and Africa (EMEA) and Asia-Pacific This year we have returned to a single list of 50 women based outside the U.S At the top: Banco Santander group executive chairman Ana Botín, whose company was rocked by volatility but maintains an unmatched level of global power The 2016 list is a diverse one, with members from 19 countries (though almost half reside in China or England) and many industries (finance leads, with 17) Sixteen percent are new, including two CEOs in the U.K (Alison Brittain of Whitbread and Anne Richards of M&G Investments) and tech stars Jennifer Li, CFO of search engine Baidu, and Jean Liu, president of ride-sharing giant Didi Chuxing The biggest mover is our new No 3, Isabelle Kocher, now in her fifth month helming French energy giant Engie, up from No 19 on last year’s EMEA ranking None of these leaders had it easy; sluggish growth, China’s slowdown, geopolitical uncertainty, and the strong U.S dollar all took a toll on performance —Erika Fry By RUPALI ARORA, ERIKA FRY, AUDREY SHI, AND CLAIRE ZILLMAN September 15, 2016 FOR T UNE.COM 141 THE INTERNATIONAL 01 02 ANA BOTÍN ARUNDHATI ISABELLE BHATTACHARYA KOCHER 55, Group Executive Chairman Banco Santander SPAIN ¬ 2015 RANK: (EME A) 03 60, Chairperson State Bank of India 49, CEO Engie INDIA ¬ (ASIA) FR ANCE ¬ 19 (EME A) BOTÍN 14 MARTELLO 05 CHUA SOCK KOONG CHANDA KOCHHAR 58, Group CEO Singapore Telecommunications 54, Managing Director and CEO ICICI Bank SINGAPORE ¬ (ASIA) INDIA ¬ (ASIA) 06 07 08 09 10 ALISON COOPER GÜLER SABANCI HO CHING ANNIKA FALKENGREN ORNELLA BARRA 50, CEO Imperial Brands 61, Chairman and Managing Director Sabanci Holding 63, Executive Director and CEO Temasek 54, CEO and President SEB Group 62, Co-COO Walgreens Boots Alliance U.K ¬ (EME A) T URKE Y ¬ (EME A) SINGAPORE ¬ 10 (ASIA) SWEDEN ¬ (EME A) U.K ¬ (EME A) 11 12 13 14 15 DONG MINGZHU WANG FENGYING LI DANG WAN LING MARTELLO PATRICIA BARBIZET 62, CEO Gree Electric Appliances 46, CEO and Executive Director Great Wall Motor 59, President and Director China General Technology 58, Head of Asia, Oceania, and SubSaharan Africa Nestlé CHINA ¬ (ASIA) CHINA ¬ (ASIA) CHINA ¬ (ASIA) SWIT ZERL AND ¬ (NEW ) 61, CEO, Artémis, and CEO and Chairman, Christie’s International Groupe Artémis FR ANCE ¬ (EME A) 16 17 18 19 20 LUCY PENG ROSE LEE WAI MUN VÉRONIQUE LAURY SHIKHA SHARMA MARIA RAMOS 43, CEO Ant Financial 63, Vice Chair, CEO Hang Seng Bank 51, CEO Kingfisher 57, CEO and Managing Director Axis Bank 57, Group CEO Barclays Africa Group CHINA ¬ 11 (ASIA) CHINA (HK ) ¬ (ASIA) U.K ¬ (EME A) INDIA ¬ (ASIA) SOU TH AFRIC A ¬ 11 (EME A) 21 22 23 24 25 DOMINIQUE SENEQUIER CAROLYN MCCALL SERPIL TIMURAY LUBNA OLAYAN 19 SHARMA 22 MCCALL 14 NANCY MCKINSTRY 63, President Ardian 54, CEO EasyJet 47, Regional CEO, AMAP Vodafone 61, CEO and Deputy Chairperson Olayan Financing 57, CEO and Chairman Wolters Kluwer FR ANCE ¬ 10 (EME A) U.K ¬ (EME A) U.K ¬ 15 (EME A) SAUDI AR ABIA ¬ 16 (EME A) NE THERL ANDS ¬ 13 (EME A) FOR T UNE COM September 15, 2016 BOTİN: SHAUN CURRY—FINANCIAL TIMES-RE A /REDUX; CHING: AL DR AGO—THE NE W YORK TIMES/REDUX; MARTELLO: GIANLUCA COLL A—BLOOMBERG VIA GE T T Y IMAGES; SHARMA: SONU MEHTA—HINDUS TA N T IMES VIA GE T T Y IM AGES; MCC A LL : M AT T HE W LLOY D—BLOOMBERG VI A GE T T Y IM AGES CHING 04 MOS T POWERFUL WOMEN INTERNATIONAL 2016 POWER 50 26 27 28 29 30 WU YAJUN MOYA GREENE KWON SEON-JOO ISABELLE EALET DOMINIQUE LEROY 52, Chairman Longfor Properties 62, CEO Royal Mail CHINA ¬ 13 (ASIA) U.K ¬ (EME A) 59, CEO and Chairman Industrial Bank of Korea 53, Global Co-Head of Securities Goldman Sachs SOU TH KORE A ¬ 12 (ASIA) U.K ¬ 18 (EME A) BELGIUM ¬ 12 (EME A) 29 E ALET 31 32 33 34 35 WEI SUN CHRISTIANSON MAGGIE WEI WU EMMA WALMSLEY JENNIFER LI RACHEL DUAN 60, Co-CEO AsiaPacific, CEO China Morgan Stanley 48, CFO Alibaba 47, CEO GSK Consumer Healthcare GSK 49, CFO Baidu CHINA ¬ 15 (ASIA) U.K ¬ 24 (EME A] CHINA ¬ (NEW ) 46, SVP, GE, and CEO and President, GE China General Electric CHINA ¬ 17 (ASIA) E A LE T: COUR T ESY OF GOLDM A N SACHS; WA LMSLE Y: COUR T ESY OF GSK; YA FA NG: DENIS BA LIBOUSE—REU T ERS; RUSSA K-AMINOACH: A RIEL JEROZOLIMSK I—BLOOMBERG VIA GE T T Y IM AGES; WAT K INS: DA N HIMBRECH T S—EPA 51, CEO Proximus CHINA ¬ 19 (ASIA) 36 37 38 39 40 JEAN LIU TSAI (PATTY) PEI-CHUN SUN YAFANG ALISON BRITTAIN ERICA MANN 37, President Didi Chuxing 36, CEO Pou Chen Group 60, Chairman Huawei Technologies 51, CEO Whitbread CHINA ¬ (NEW ) TAIWAN ¬ (NEW ) CHINA ¬ 21 (ASIA) U.K ¬ (NEW ) 33 WALMSLEY 57, Head of Consumer Health Division Bayer SWIT ZERL AND ¬ (NEW ) 41 42 MARGARITA BOO-JIN LOUIS-DREYFUS LEE 43 44 45 RAKEFET RUSSAKAMINOACH ANN CAIRNS ANNE RICHARDS 54, Chairperson of Supervisory Board Louis Dreyfus Holding 46, CEO Hotel Shilla SWIT ZERL AND ¬ 21 (EME A) SOU TH KORE A ¬ 20 (ASIA) 46 47 NANCY SOUTHERN ALISON WATKINS ZHOU 53, Group Managing QUNFEI Director Coca-Cola Amatil C ANADA ¬ (NEW ) AUS TR ALIA ¬ 22 [ASIA) 59, CEO, Chairman, and President ATCO 50, CEO and President Leumi Group ISR AEL ¬ 23 (EME A) 48 59, President, International Markets MasterCard 52, CEO M&G Investments U.K ¬ 25 (EME A] U.K ¬ (NEW ) 49 50 MARINABERLUSCONI LINDA HASENFRATZ 46, CEO and Founder Lens Technology 50, Exec Chairman, Fininvest Group, and Chairman, Mondadori Group Fininvest 50, CEO Linamar CHINA ¬ 18 (ASIA) ITALY ¬ 22 (EME A) C ANADA ¬ (NEW ) September 15, 2016 38 YAFANG 43 RUSSAKAMINOACH 47 WATKINS FOR T UNE COM 14 NO 07 GÜLER SABANCI LEADING IN TIMES OF CHAOS 14 FOR T UNE COM September 15, 2016 Chairman, Managing Director, Sabanci Holding TURKEY’S ABORTED COUP IS THE LATEST CHALLENGE FOR GÜLERSABANCI BY ERIKA FRY COUR T ESY OF S A B A NCI HOLDING NEVER DULL Gűler Sabanci has run Turkish conglomerate Sabanci Holding since 2004— through good times and bad MOS T POWERFUL WOMEN INTERNATIONAL N HER ANNUAL letter to shareholders earlier this year, Güler Sabanci, chairman and managing director of Sabanci Holding, one of Turkey’s largest conglomerates, offered a couple of reasons for optimism in 2016: “the favorable turn in Turkey’s relations with the EU” and “the immense opportunities in store” for her country in the coming year Just six months later, it’s a radically different picture Turkey is currently under a state of emergency, as it has been since a failed coup attempt in July The resulting purge, which has removed more than 80,000 people from public duty—including thousands of academics and the chief financial officer of Turkish Airlines—has drawn international condemnation Meanwhile, the country continues to grapple with the region’s refugee crisis and the wave of deadly terrorist attacks that have hit its major cities and southern border region, as well as the Turkish lira’s 21% decline in value since January 2015 With the broader global volatility out there, it’s hard to imagine a more challenging environment in which to lead the Istanbul-based Sabanci—a $17.6 billion portfolio of businesses that spans the financial, industrial, retail, and energy sectors So far Sabanci, which operates in 16 countries, is holding its own In the first half of 2016 the group’s sales rose 22% in local currency, and profits were up 11% The family business’s third-generation leader and a fixture on Fortune’s Most Powerful Women international list (No in 2016), Sabanci is confident the country will rebound as well “Turkey has an incredible stamina to come back,” she told Fortune in mid-August A cordial but hard-charging 61-year-old with owlish glasses and a booming voice, Sabanci is no stranger to turmoil She joined the family company, which was run by her five uncles (her father died when she was young), straight out of college 38 years ago Though the group was known for textiles, Sabanci shrewdly opted for a job in its fledgling tire company, Lassa “I had wanted to grow with a business,” she explains “I loved the smell of rubber!” A 1980 coup nearly derailed her plans The putsch, which ushered in a period of fluctuating exchange rates and import restrictions, drastically disrupted operating conditions and brought Lassa to the brink of bankruptcy Sabanci’s job import- I FEEDBACK: LE T T ERS@FOR T UNE.COM 2016 ing raw materials from abroad was especially tough It took three years to recover, but she now considers the experience one of her most valuable “I learned crisis management firsthand And being part of that team has helped me all my life.” Sabanci continued to gravitate toward challenges, forging the company’s first-ever joint venture in 1987, to build a steel-cord factory in Turkey The effort altered the family business “We were used to having control,” she says “My uncle asked me, ‘Who will be boss then?’ I said the project itself will be the boss.” As Turkey emerged on the world stage in the 1990s, she played a pivotal role in globalizing the company Then, in 2004, she became Sabanci’s chairman, elected by the majority of family members—and over many male relatives—following the death of her uncle Sakip It was a startling development at the time, an unprecedented position for a woman in Turkey That’s not her only “first:” A leading Turkish philanthropist who founded a university in 1994, she has also proved savvy at navigating her nation’s complicated politics—steering clear of sensitive sectors while acting as a strong economic ambassador for Turkey Fadi Hakura, who runs the Turkey Project at think tank Chatham House, notes that this fits the Sabanci tradition: “They’ve been able to manage the gyrations of the last five decades They know how to manage the volatility governing Turkish politics.” At this particularly fraught moment, that means doubling down on the home country “We are still investing,” Sabanci says “We strongly believe in the future prospects of our country, and we put our money where our mouth is.” The previous weekend she had joined the Turkish Prime Minister to open a Composite Technologies Center of Excellence—an academic-industry collaboration intended to develop a more innovative R&D ecosystem in the country Sabanci also sees a silver lining in the national unity that has come out of the summer’s failed coup, calling it an important opportunity to implement reforms But she is guarded when it comes to criticism of her country’s current direction She wouldn’t comment on Turkey’s postcoup purge, other than to accuse the Western media of bias Of the attempted takeover itself, though, she is unequivocally opposed “It is a very bad memory for Turkey, and hopefully it will always stay a bad memory only.” Now she must use her crisis-management skills—once again September 15, 2016 FOR T UNE.COM 14