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The world’s 500 largest household enterprises grew their income by 10% amidst the continued international financial slowdown

  • The five hundred largest household companies generate $8.02t and make use of 24.5m folks throughout 47 jurisdictions

  • Practically half of the featured firms are situated in Europe

  • Extra must be carried out to shut the gender hole with ladies holding solely 23% of board seats

LONDON, Jan 16, 2023 /PRNewswire/ — The five hundred largest household companies on the planet are very important to the well being of and are rising sooner than the worldwide economic system. Collectively, they generate $8.02t in revenues and employment 24.5m folks worldwide throughout 47 jurisdictions, excessive sufficient to be the third largest nationwide economic system by income, behind solely the US and China. These and different findings have been revealed at present within the 2023 EY and College of St.Gallen Household Enterprise Indexwhich is a rating of the five hundred largest household companies on the planet by income, and issued each two years.

EY – Constructing a greater working world (PRNewsFoto/EY) (PRNewsfoto/EY) (PRNewsfoto/EY)

Longevity and stability proceed to be a staple among the many firms listed on the 2023 index, as greater than three-quarters (76%) have been round for greater than 50 years, and almost one-third (31%) are greater than a century outdated. That is additional strengthened by their board buildings, with nearly one-quarter of all board seats (23%) being held by members of the family and almost half (45%) having members of the family as CEOs.

Whereas most firms within the index are based mostly on Europe (46%), the US is the main particular person jurisdiction (24%). Total, precisely half of all the companies within the index are situated in Europe, Center East, India and Africa (EMEIA), with the Americas house to 34% and Asia-Pacific housing 16% of firms within the index. The contribution of Asia-Pacific has been constantly rising ever because the first version of the index in 2015, from 12% to 16% this yr. In the meantime, concerning trade sectors, consumer-based household enterprises lead the index (37%) because of their dominant share within the Americas. Corporations in Superior Manufacturing and Mobility comply with (29%) as this sector is within the lead in EMEIA and Asia-Pacific.

Although profitable household enterprises are acknowledged for being agile, modern and purposeful, there may be nonetheless a technique to go along with gender parity. Globally, round 6% have a feminine CEO, and girls maintain solely 23% of all board seats. North America and Europe stand out on the index with feminine CEOs however nonetheless solely round 7%. In terms of the distribution of board seats amongst members of the family, Europe leads the way in which with ladies occupying 25% of family-held board seats, significantly above the worldwide common of 20%.

Helena Robertsson, EY World Household Enterprise Chief, says:

“Household-owned enterprises proceed to indicate a powerful means to adapt rapidly and I applaud them for his or her steady transformation and innovation. As we anticipate a possible slowdown in international financial progress for the yr forward, the long-term perspective of those firms and the need to additional a legacy might be crucial drivers for sustaining resilience and making certain a robust succession plan is in place.I particularly sit up for seeing how the following technology will additional give attention to investing in know-how and diversifying the face of boards whereas sustaining important contributions to the worldwide economic system.”

thomas zellwegerProfessor from the Middle for Household Enterprise on the College of St.Gallen, says:

“The general composition Index is steady, with solely 7% new entrants this yr, proving the resilience of household companies. The rising prominence of Asia-Pacific Corporations can be putting and an indication of the financial energy these family-owned enterprises wield within the area. It is going to be attention-grabbing to watch how these lengthy established companies proceed to adapt and prosper in gentle of social, environmental, financial and technological change. The position of the following technology in tackling these challenges might be completely crucial.”

Notes to editors

About EY

EY exists to construct a greater working world, serving to to create long-term worth for shoppers, folks and society and construct belief within the capital markets.

Enabled by information and know-how, numerous EY groups in over 150 international locations present belief by way of assurance and assist shoppers develop, remodel and function.

Working throughout assurance, consulting, legislation, technique, tax and transactions, EY groups ask higher questions to search out new solutions for the complicated points dealing with our world at present.

EY refers back to the international group, and will check with a number of, of the member companies of Ernst & Younger World Restricted, every of which is a separate authorized entity. Ernst & Younger World Restricted, a UK firm restricted by assure, doesn’t present companies to shoppers. Details about how EY collects and makes use of private information and an outline of the rights people have underneath information safety laws can be found by way of ey.com/privateness. EY member companies don’t observe legislation the place prohibited by native legal guidelines. For extra details about our group, please go to ey.com.

This information launch has been issued by EYGM Restricted, a member of the worldwide EY group that additionally doesn’t present any companies to shoppers.

About EY Household Enterprise

As trusted advisors to formidable business-owning households, together with greater than 92% of the world’s high 500 household enterprises, EY groups have the expertise and know-how to assist all the household enterprise — households, their household enterprise and their household workplace — pursue progress alternatives whereas preserving values ​​and constructing the household legacy. Drawing from greater than 100 years of expertise supporting the world’s most entrepreneurial households, EY Household Enterprise professionals are skilled in pinpointing and serving to to optimize the drivers that influence household companies’ progress and longevity, protect wealth and tradition, and solidify multigenerational legacies. Go to ey.com/familyenterprise.

About EY Non-public

As Advisors to the formidable™, EY Non-public professionals possess the expertise and fervour to assist personal companies and their house owners in unlocking the total potential of their ambitions. EY Non-public groups supply distinct insights born from the lengthy EY historical past of working with enterprise house owners and entrepreneurs. These groups assist the total spectrum of personal enterprises together with personal capital managers and buyers and the portfolio companies they fund, enterprise house owners, household companies, household places of work and entrepreneurs. Go to ey.com/personal.

Lauren Mosery
EY World Media Relations
+1 732 977 2063
lauren.mosery@ey.com

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