Succession planning

Is It Time to Consider Co-CEOs?

The model is more viable than you might think.

by

and

Anton Warendh

by

and

Anton Warendh

From the Magazine (July–August 2022) · Long read

Chad Hagen

The C-Suite Skills That Matter Most

Is It Time to Consider Co-CEOs?

When Hiring CEOs, Focus on Character

As the World Shifts, So Should Leaders

Summary.

“Two heads are better than one.” It’s a familiar expression—and one that businesses might want to heed. The authors’ study of 87 companies led by co-CEOs showed that those firms tended to generate better returns than did peer companies with a sole CEO.

Successful power sharing at the top depends on multiple factors: strong commitment to the partnership by both leaders, complementary skill sets, clear responsibilities and decision rights, mechanisms for conflict resolution, the projection of unity, shared accountability, board support, and an exit strategy. The authors caution that the co-CEO model won’t work everywhere. But for large, multifaceted firms, those with agile-based management, and those engaged in technology transformations, it’s a promising option.

For a long time the prevailing wisdom has been that companies need to be led by a single strong leader. Over the years some companies have put co-CEOs in charge, but not often. Of the 2,200 companies that were listed in the S&P 1200 and the Russell 1000 from 1996 to 2020, fewer than 100 were led by co–chief executives. Moreover, during that period, especially in times of stress, some of those jointly led companies performed notably poorly—among them Chipotle Mexican Grill, the software company SAP, and the mobile phone pioneer Research In Motion (which became BlackBerry in 2013).

A version of this article appeared in the July–August 2022 issue of Harvard Business Review.

When Hiring CEOs, Focus on Character

Personal behavior can predict which leaders might go astray.

Marc A. Feigen is the founder of Feigen Advisors LLC, a firm serving CEOs of leading global enterprises.
Michael Jenkins is a partner at Kearney, a global management-consulting firm, where he leads the strategy and transformation practices in the Americas.
Anton Warendh is the director of client service and operations at Feigen Advisors LLC, a firm serving CEOs of leading global enterprises.

The C-Suite Skills That Matter Most

Is It Time to Consider Co-CEOs?

When Hiring CEOs, Focus on Character

As the World Shifts, So Should Leaders

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