Why Extra Corporations Are Turning To Co-CEOs 

Lately, huge 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 successful funding, as accountability is shared subsequently doubtlessly 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 taking a look at?

What’s the co-CEO pattern?

The pattern, which has been picked up by Reuters and Quartz, amongst others, has seen firms both exchange a solo CEO with two co-CEOs like Spotify, or herald a brand new CEO to affix an current 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 power; but additionally the truth that they’ve labored collectively for greater than 15 years.

The 2 stated in a joint assertion: “We’ve labored collectively a really very long time and have seen Spotify via many various chapters…Whereas we carry completely different experiences and views to the CEO function, we each have a powerful bias to motion and might’t wait to get began understanding that we’ll have Daniel’s full partnership and ongoing help.”

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

Why are firms appointing co-CEOs?

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

The crew studied 87 public firms 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 common tenure was round 5 years, which was “on par with solo CEOs”. Success appears to pivot on bringing two individuals collectively who’ve complementary talents and clearly outlined roles; and if this works, the mannequin can final.

One other clear benefit is that co-CEOs can help one another, particularly on the subject of looking for funding. Traders recognise this. As one blogger wrote on Medium: “Solo founders make traders nervous. Startups are lonely and exhausting, and a single founder is extra more likely to burn out or decelerate with out a sturdy help 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 – the vast majority of firms nonetheless function with one chief who’s supported by a C-Suite. Govt search agency Heidrick & Struggles stories that of the Fortune 1000 firms, 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 workers on their books. Bringing in a associate 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 tasks they wish to hand over. This delineation of roles is important.

There would additionally should be choices 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 can be monetary. Bringing a CEO right into a enterprise – whether or not as a co-CEO or sole chief – is pricey. Their wage and fairness have to be weighed up with the expansion that their appointment is hoped will carry.