Why Extra Firms Are Turning To Co-CEOs

In recent times, large names together with Spotify, Netflix, Oracle and Comcast have all opted to undertake a co-CEO management construction.

The mannequin has big advantages, particularly on the subject of profitable funding, as accountability is shared subsequently probably mitigating the burnout that founders report.

Nonetheless, whereas many startups have co-founders from the start, is that this a mannequin that SMEs needs to be ?

What’s the co-CEO pattern?

The pattern, which has been picked up by Reuters and Quartz, amongst others, has seen corporations both change a solo CEO with two co-CEOs like Spotify, or herald a brand new CEO to hitch an present chief.

Spotify’s CEO, Daniel Ek, has held his function for practically twenty years however is now handing over to co-presidents Alex Norström and Gustav Söderström, who will work collectively from January 1 2026.

The duo had already been serving as co-presidents, however every had a unique focus. Söderström was Chief Product and Know-how Officer, whereas Norström was Chief Enterprise Officer.

In the announcement, Spotify singled out the pair’s differing focusses as a energy; but additionally the truth that they’ve labored collectively for greater than 15 years.

The 2 mentioned in a joint assertion: “We’ve labored collectively a really very long time and have seen Spotify by many various chapters…Whereas we deliver completely different experiences and views to the CEO function, we each have a powerful bias to motion and might’t wait to get began figuring out that we are going to have Daniel’s full partnership and ongoing assist.”

Comcast has taken a unique method. Brian L. Roberts has held the function of CEO since 2002, however introduced final month that the corporate’s president, Mike Cavanagh, shall be becoming a member of him as co-CEO. Whereas information experiences counsel that that is succession planning, Roberts said that the 2 CEOs are trying ahead to working collectively “for years to come back”.

Why are corporations appointing co-CEOs?

A examine quoted by the Harvard Enterprise Overview confirmed that the co-CEO construction usually interprets into higher outcomes.

The group studied 87 public corporations between 1996 and 2020, which had been being led by co-CEOs, and located that “they generated common annual shareholder returns of 9.5% whereas the duo was in cost, higher than the 6.9% common for every agency’s related index”. This equated to almost 60% outperforming ventures with a single CEO.

The examine additionally recorded that the typical tenure was round 5 years, which was “on par with solo CEOs”. Success appears to pivot on bringing two folks collectively who’ve complementary skills and clearly outlined roles; and if this works, the mannequin can final.

One other clear benefit is that co-CEOs can assist one another, particularly on the subject of in search of funding. Buyers recognise this. As one blogger wrote on Medium: “Solo founders make buyers nervous. Startups are lonely and exhausting, and a single founder is extra prone to burn out or decelerate with out a robust assist community.”

Nonetheless, the success of a co-CEO relationship depends on each people working effectively collectively; and having the ability to take care of any friction, particularly in excessive stress conditions.

Can co-leading work for SMEs?

It is very important level out that whereas there’s an upwards pattern – nearly all of corporations nonetheless function with one chief who’s supported by a C-Suite. Govt search agency Heidrick & Struggles experiences that of the Fortune 1000 corporations, 14 have co-CEOs in place in 2025.

Additionally, for some SMEs, the mannequin is irrelevant. In response to authorities statistics, simply over 4 million small to medium companies haven’t any staff on their books. Bringing in a accomplice on this scenario could be an enormous monetary resolution.

For bigger ventures, bringing on board a co-CEO would imply the founder (who normally holds the function of CEO) delineating what obligations they want to hand over. This delineation of roles is crucial.

There would additionally have to be selections made on the fairness share within the firm – particularly whether or not this needs to be a 50/50 cut up; in addition to if fairness ought to dictate voting rights.

Nonetheless, the important thing deciding issue for whether or not this mannequin can work shall be monetary. Bringing a CEO right into a enterprise – whether or not as a co-CEO or sole chief – is dear. Their wage and fairness have to be weighed up with the expansion that their appointment is hoped will deliver.