Fast Company Names Code and Theory One of the World's Most Innovative Companies
The creative and technology network was honored twice based upon its transformational work for NBC, NFL, Minnesota Star Tribune and other top clients.
NEW YORK, March 18, 2025 /PRNewswire/ -- Code and Theory, part of Stagwell (NASDAQ: STGW), has been named to Fast Company's prestigious list of the World's Most Innovative Companies for 2025, twice. The only technology and creative network with a balance of 50% creative and 50% engineers, Code and Theory partners with its clients to redefine what is possible to create lasting impact and drive long-term growth.
Code and Theory was honored within both Fast Company's Design and Teamwork categories. Fast Company created the special Teamwork list this year to honor the most innovative companies that demonstrated a high degree of collaboration in developing new products, ideas and strategies, either by bringing together internal teams or partnering with outside organizations to realize their innovations. Code and Theory was recognized for its partnership with The Minnesota Star Tribune for transforming the news experience.
This recognition places Code and Theory among industry giants like Waymo, Nvidia, Duolingo — companies that are driving innovation, redefining industry standards and reaching remarkable milestones.
Code and Theory is reshaping industries, including finance, publishing, sports and government, setting new standards for innovation. In 2024 alone, the network's creative work drove bold, measurable results for its clients. For example, Code and Theory:
Amid widespread misinformation, cyber threats and political polarization, Code and Theory rebuilt NBC's Big Board from the ground up, ensuring it delivered meticulously verified, real-time election data and transformed complex statistics into clear, engaging narratives. The Big Board (and on-air data analyst Steve Kornacki) propelled MSNBC to its most viewers in network history surpassing rival CNN. See the case study.
Transformed the NFL app from a static tool into a dynamic, fan-first experience that reflects the league's energy and boldness. The relaunched app drives over 5 million weekly users, and fans streamed more than 2.3 billion minutes worth of games last year (that's more than 10x the Netflix catalog). Explore the case study.
In less than six months, Code and Theory delivered a comprehensive transformation for the Minnesota Star Tribune: a modern digital experience that's more accessible for younger readers, created new premium opportunities for advertisers, and leveraged best-in-class technology to build the system so it can all flex for the future. Less than 24 hours after launch, The Minnesota Star Tribune hit 32% of its monthly subscriber goal. Read all about it here.
Built, designed and launched YETI's newest brand experience, Plan Your Wildest Year Yet. This interactive platform empowers adventure seekers everywhere to generate their very own custom calendar of global outdoor events to kick off 2025 right. The 28% "Add to Calendar" rate was 25% over the industry benchmark for campaign website engagement and made for hundreds of thousands of events added, proving YETI tapped into real outdoor demand. See the award-winning work.
Code and Theory continues to drive impact with the launch of its new Enterprise Experience Transformation (EXT) practice. Debuting at Adobe Summit today, this strategic initiative will solve a critically overlooked market challenge: the siloed consulting ecosystem, leaving businesses dangerously unprepared for AI disruption. Adriana Rubio, who built the world's largest Adobe practice during her tenure at Accenture, joined Code and Theory as managing director of the EXT practice earlier this month.
Code and Theory Co-Founder and Executive Chairman Dan Gardner says, "Being recognized for our teamwork with the Minnesota Star Tribune is a particular honor. We've built Code and Theory around talent with different skill sets from Deloitte to Cosmopolitan to the White House. Our leaders thrive at bringing our clients' entire C-suite together. This is the secret to our innovative culture, which is obsessively focused on solving for tomorrow's opportunities."
Code and Theory was named Ad Age's B2B Agency of the Year last week and has also been named Digiday's Most Innovative Company among other honors.
Code and Theory CEO Michael Treff says, "Innovation isn't just about the big ideas. It's about executing them in ways that drive measurable impact. Our ability to merge design and technology has delivered tangible outcomes for our clients, helping them solve complex challenges and achieve long-term growth. By always focusing on the customer experience first, we can unlock innovation that drives business results."
Fast Company Editor-in-Chief Brendan Vaughan says, "Our list of the Most Innovative Companies offers both a comprehensive look at innovation today and a playbook for the future. This year, we recognize companies that are harnessing AI in deep and meaningful ways, brands that are turning customers into superfans by overdelivering for them and challengers that are introducing bold ideas and vital competition to their industries. At a time when the world is rapidly shifting, these companies are charting the way forward."
About The Code and Theory NetworkThe Code and Theory Network is the only technology and creative network with a balance of 50% creative and 50% engineers. Our unique makeup makes us the place where CMOs, CTOs and CIOs come together to drive results for their businesses. We partner with our clients to redefine what is possible to create lasting impact and drive long-term growth. Part of Stagwell, Code and Theory offers a global footprint and the capabilities to work across the entirety of the customer-facing journey and implement the technology that powers it. The network includes the flagship agency Code and Theory as well as Kettle, Instrument, Left Field Labs, Truelogic, Create. Group, Rhythm and Mediacurrent. Code and Theory clients include Amazon, JPMorgan Chase, Microsoft, NBC, NFL and Yeti. For more, visit codeandtheory.com
About StagwellStagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 40+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.
CONTACT:Kenneth Heinkenneth.hein@codeandtheory.com
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Forbes
26 minutes ago
- Forbes
Have Reporting Burdens Led To More Firms Staying Private?
The best evidence for this hypothesis comes from micro-caps. Confounding trends and offsetting benefits of being public are often ignored by advocates for reducing reporting rules. The number of US public firms has fallen in recent times. Prof. Jay Ritter, who tracks these numbers, documents that we had 3,804 US listed firms at the end of 2024 relative to the peak of around 8000 in 1996. Remarkably we had 1,384 foreign firms listed at the end of 2024. Many blame higher costs reporting and auditing for the smaller number of US listed firms. They point to the cumulative onslaught of Sarbanes Oxley 2022, the 2003 Global Settlement that alleged made it harder for analysts to cover small firms, Dodd-Frank 2010, and the supposedly relentless pace of accounting and auditing regulation pushed by Congress, the SEC and the FASB. The question I want to address is whether there is any evidence for that claim. Trend depends on benchmark period In a research note, Vanguard points out that if we go back to 1972, the decline shrinks to a third. On top of that, 1972 was the year NASDAQ was set up and 3,000 odd new companies entered the public arena. Why the fall? Doidge, Karolyi, Shen and Stulz (2025) list two potential underlying reasons: (i) it is easier to stay private because restrictions on staying private have softened and it has become easier to raise funds for private firms, perhaps due to the low interest rate environment; and (ii) antitrust enforcement over the last decade has been relatively lax and product market competition has heated up leading to a greater number of mergers. They don't seem to devote much space to reporting cost burden. Acquisitions drive most of the decline A McKinsey piece shows that 95% of the exits from our markets are driven by acquisitions. Thus, the so-called missing companies have not left the investible universe for the US investor as the investor gets indirect exposure to the target via the acquirer's stock. Espen Eckbo makes the acquisition point more rigorously. However, the rate of entry and exit into public markets is not uniform across industries. We had more IPOs, relative to exits, in pharmaceutical and biotech industries. The number of IPOs, relative to exits, are more or less the same in retail, materials, consumer apparel and durables. Exits far exceed IPOs in banking, software, technology hardware, media and telecom. Any theory that argues reporting burdens are a first order problem needs to explain why such burden has massively increased for banking, software, tech hardware, media and telecom relative to pharma. Smaller IPOs, mostly micro-caps, gone The McKinsey piece also makes the interesting point that we have far fewer smaller IPOs now relative to the past. This suggests that more of the earlier value is captured by private investors, as private equity firms seem to take longer to exit their positions now relative to before (3 years in 2007 relative to 6 years in 2015). One could argue that the costs of reporting, auditing and compliance have become too large for smaller IPOs to even think about going public. Vanguard points out that the missing IPOs are micro-caps. Is the loss of micro-caps a policy concern? Moreover, Mauboussin, Callahan, and Majd (2017) and Doidge, Karolyi, and Stulz (2017) note that half of what can be referred to as the 'listing gap' (exits more than IPOs) occurred before Sarbanes Oxley became law. Start-ups have declined too Somewhat intriguing, the number of start-ups appears to display mixed patterns since 1996. The Kaufmann index of startup activity falls from 1996 to its nadir in 2013, after which it picks up till 2017, when the index was last published but the 2017 number was still lower than the 1996 number. This suggests that there may be fewer businesses even available to go public. International exchanges I am in the UK as I write this and an institutional investor I know here suggested that the London stock exchange has suffered a similar decline in IPOs. In fact, there is some angst in the UK that they are losing listings to the US. The loss in listings applies to other advanced economies as well, as Espen Eckbo points out. The theory pushing for reporting burdens as the primary explanation will have to explain why UK reporting and reporting in other advanced economies has also become onerously burdensome. Burgeoning private equity (PE) A senior executive tells me,' the payouts achieved by management and their VCs by arranging acquisitions to PE firms, as well as PE to PE sales have been, in recent times, just as compelling as anything other than a truly dramatic IPO. Smaller companies, companies with significant internal ownership, companies without strong growth or high investment opportunities (that is to say not pharma or biotech who absolutely need risk capital), companies where management would like to stay involved but are not keen on public company visibility. These are all great reasons to be acquired by PE rather than either IPO or even getting acquired by a public company rapidly, with certainty, without much publicity. PE is incredibly well equipped at maximizing ongoing cashflows, and growth, while still maintaining: (i) particularly attractive incentives for management in the transaction, (ii) management that stays post transaction with significant incentive retentions and milestones -- all without pesky proxy announcements about executive compensation; and (iii) objectively great returns to those equity holders that are just selling.' The role of reporting for intangibles Rene Stulz (2018) has suggested that new firms heavily invest in intangibles and forced disclosure of intangibles by securities laws, all else constant, encourage firms to stay private. I am not sure of this argument as US public firms barely tell us anything about their intangible investments, especially home grown ones. Papers suggesting that SOX increased regulatory burdens Zhang (2007) finds negative returns of around -15% to -13% around the events surrounding the passage of SOX. I find these returns too large to be credible. Engel, Hayes, and Wang (2007) observed an increase in decisions to go private after SOX. But this evidence is mixed. Bartlett (2008) of the Stanford Law School re-examines this question and concludes, 'non-SOX factors were the primary impetus for the "name brand" buyouts commonly evoked as evidence that SOX has harmed the competitiveness of U.S. capital markets.' Iliev (2010) is perhaps the best cited paper in the area. Using careful research designs, Iliev documents that section 404 of the SOX, which mandates that the auditor attest the internal controls of the firm for the absence of a material weakness, led to conservative reported earnings but also imposed real costs. Iliev compares audit fees and earnings quality for firms with float of $50-75 million to those just above at $75 million-$100 million. The idea is that firms in these two partitions are mostly similar except that Section 404 applies only to firms with float greater than $75 million. He concludes, 'on net, SOX compliance reduced the market value of small firms' and increases audit fees by 167%. Atanasov and Black (2020) replicate Iliev (2010) and conclude that not controlling for firm growth led Iliev (2010) to overestimate SOX compliance costs in his analysis. However, the increase in audit fees suffered by the small firms is real, by about 80%. The dollar numbers underlying these estimates are worth reiterating. The average firm in Iliev's affected firm sample pays more than $0.7 million in greater audit fees. The mean and median earnings of sample firms is -$4.8 million and -$1.4 million respectively. Iliev uses this comparison to argue that the compliance costs of section 404 were substantial. Were they? Would these firms have survived had section 404 not been enacted? Is it obvious that investors would have wanted to invest in such firms? And, how much of the audit fee hike is temporary for a year or two. Even more noteworthy, this evidence relates to micro caps (defined as stocks with market capitalizations of between $50 million and $250 million in 2024). These numbers would be smaller if we went back in time as stock markets have gone up quite a bit in the last 20 years or so. The bigger question is how can we possibly generalize evidence reliant on a sample of microcaps to the entire corporate ecosystem? Ewens, Xiao and Xu (2024), in a new paper, move this literature forward and consider three such natural breakpoints to estimate costs of mandatory reporting: (i) firms below $25 million in float in 1992 were designated as 'small businesses' and escaped a few disclosure requirements; (ii) the $75 million float threshold that Iliev looked for section 404 of SOX; and (iii) the $700 million float threshold used in the 2012 JOBS Act. The 2012 JOBS Act is interesting because the point of that legislation was to exempt smaller firms from a few reporting requirements. So, the JOBS Act presents a bit of a counterfactual to the usual setting whereby regulation increased. Based on these events, they claim that the median firm spends 4.3% of its market capitalization on compliance costs. I find the 4.3% number somewhat big. Moreover, even with the clever econometrics used in the paper, can one really generalize estimates from SOX and JOBS Act to the universe of firms? I don't know. 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One must wonder whether 20 odd IPOs per year are worth the potential collateral damage to the credibility of US reporting and compliance systems, if the PCAOB were to be dismantled or SOX were to be repealed. Incidentally, many other advanced economies passed regulation, modeled on SOX, in their own countries. Did they not conduct a careful assessment of costs of such regulation on their IPO activity? Or did they recognize the need to tighten up reporting and audit rules after the tech bubble burst in 2001? IPO Tax Robert Jackson's, the ex-SEC commissioner, analysis highlights the 7% tax that middle market IPOs must pay even before they go public, to investment bankers, lawyers and the like. Surely, the IPO tax, which has little to do per se with the reporting and compliance costs of 4.3% highlighted by Ewens et al, deserves more attention. The advocates of cutting reporting burdens are somewhat silent about reducing the 7% middle market IPO tax. And I am aware of startups that are working on software that can write an S1 in minutes with AI. Shouldn't the 4.3% reporting costs, estimated by Ewens et al., fall? Benefits of staying public are often ignored Owners, VCs, and capital providers get liquidity. Public firms can potentially pay labor mostly via stock and hence attract higher quality talent. Stock can be used as a means of payment to buy another company and hence take out a rival or to buy a complementary firm. If you get acquired, the acquirer is usually expected to pay a 25% control premium over the prevailing stock price. In sum, the case for reporting burdens forcing companies to stay private is far from clear. The best evidence relates to micro-caps and generalizing from that set to other companies is not straightforward. 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