Are Co-CEOs the Future of Leadership?

The co-CEO model has gained traction as a leadership structure, with companies like Board Intelligence thriving under this arrangement. Co-CEOs, such as Pippa Begg and Jennifer Sundberg, illustrate how shared responsibilities can reduce burnout and enable work-life balance, especially for executives who are also parents. The trend has seen a significant rise in the number of co-CEO positions within major corporations, reflecting a shift towards collaborative leadership.

Last updated: 12 October 2023 (BST)

What’s happening now

The co-CEO model is increasingly being adopted by businesses in the UK and beyond, with notable examples including Board Intelligence, Oracle, and Spotify. This structure allows leaders to share the burdens of decision-making and operational responsibilities, potentially leading to better outcomes for both the company and its employees. As pressures mount on executives, the co-CEO model provides a viable alternative to traditional leadership structures, enabling a more balanced approach to management.

Key takeaways

The number of companies employing co-CEOs has significantly increased, with 24 firms in the Russell 3000 adopting this model by 2024.
Co-CEO structures allow for shared responsibilities, reducing individual burnout and enabling better work-life balance.
Many co-CEOs report improved collaboration, leveraging each partner's strengths to benefit the organisation.
Despite its advantages, the co-CEO model is not universally successful and can lead to power struggles if not managed correctly.
Co-CEO arrangements can also serve as a succession planning strategy within companies.

Timeline: how we got here

The adoption of the co-CEO model has grown over the past decade, with key milestones including:

2015: Only 11 companies within the Russell 3000 had co-CEOs.
2020: Netflix officially appoints co-CEOs, setting a precedent for tech companies.
2024: The number of co-CEO positions in the Russell 3000 rises to 24, showcasing a trend toward shared leadership.

What’s new vs what’s known

New today/this week

Recent discussions on the co-CEO model highlight its growing popularity among startups and established firms alike, with examples of successful partnerships emerging from various sectors. Companies are increasingly recognising the potential benefits of shared leadership, particularly in managing growth and enhancing employee engagement.

What was already established

The effectiveness of co-CEO partnerships has been previously documented, with examples such as the success of Netflix's co-CEOs. Observations have shown that when co-CEOs possess complementary skills and have a history of collaboration, they can lead their companies more effectively than traditional single-CEO structures.

Impact for the UK

Consumers and households

As more UK companies adopt the co-CEO model, consumers may benefit from improved services and innovation driven by diverse leadership styles. This shift could lead to better customer engagement and satisfaction as companies become more responsive to market demands.

Businesses and jobs

The co-CEO model can enhance workplace dynamics, allowing for improved employee morale as leaders model better work-life balance. With shared leadership, businesses can also attract talent seeking a more supportive corporate culture. However, companies must ensure that roles are clearly defined to avoid confusion and inefficiencies.

Policy and regulation

As the trend towards co-CEOs grows, regulators may need to consider how this impacts corporate governance. The implications for accountability and decision-making processes are significant, necessitating potential updates to existing corporate governance frameworks to support this evolving model.

Numbers that matter

122: The average multiple of CEO pay compared to the average full-time UK worker.
56%: The percentage of top executives feeling burnt out in 2024.
60%: The proportion of CEOs reporting they spend too little time with their families.
71%: The percentage of women in leadership who take less than six months of maternity leave.
32%: The drop in women at managerial levels after having children.

Definitions and jargon buster

Co-CEO: A leadership structure where two individuals share the role and responsibilities of Chief Executive Officer.
Burnout: A state of physical, emotional, and mental exhaustion caused by long-term involvement in emotionally demanding situations.
Succession planning: The process of identifying and developing new leaders to replace old leaders when they leave or retire.

How to think about the next steps

Near term (0–4 weeks)

Companies considering a co-CEO model should evaluate potential candidates for compatibility and complementary skills. Leadership teams should begin open dialogues about expectations and responsibilities to ensure a smooth transition.

Medium term (1–6 months)

As co-CEO structures mature, ongoing assessments of performance and team dynamics will be critical. Companies should establish metrics for success and regularly review the arrangement to ensure it meets organisational goals.

Signals to watch

Increased reports of employee satisfaction and engagement in companies adopting co-CEOs.
Changes in productivity metrics that may correlate with the implementation of shared leadership structures.
Trends in the number of co-CEO appointments within major industries.

Practical guidance

Do

Encourage transparent communication between co-CEOs to align on strategy and vision.
Leverage each leader's strengths to optimise decision-making and operational efficiency.
Regularly assess the impact of the co-CEO model on employee morale and company performance.

Don’t

Allow power struggles to develop; define clear roles and responsibilities from the outset.
Neglect the importance of team cohesion and shared goals.
Overlook the need for regular feedback and adjustments to the leadership model.

Checklist

Identify potential co-CEO candidates with complementary skills.
Establish clear communication protocols between co-CEOs.
Define roles and responsibilities for each leader.
Set goals and metrics to evaluate the effectiveness of the co-CEO model.
Monitor employee engagement and satisfaction levels throughout the transition.

Risks, caveats, and uncertainties

The co-CEO model, while beneficial in many contexts, is not without risks. Companies that lack clear communication and defined roles may face confusion and internal conflict. Additionally, the success of this model often depends on the prior working relationship between the co-CEOs. Without established trust and collaboration, the arrangement may lead to inefficiencies or misalignment in strategic vision.

Bottom line

The rise of the co-CEO model presents a promising alternative for businesses seeking to balance leadership responsibilities and enhance workplace culture. As companies navigate the complexities of modern business, embracing shared leadership could be a strategic advantage. However, careful consideration of roles, communication, and organisational dynamics is essential for success.

FAQs

What is a co-CEO model?

A co-CEO model involves two individuals sharing the role of Chief Executive Officer, allowing them to divide responsibilities and leverage each other's strengths.

What are the benefits of having co-CEOs?

Co-CEOs can reduce burnout, improve work-life balance, and enhance decision-making through collaboration, ultimately benefiting the organisation.

Are there any disadvantages to the co-CEO structure?

Yes, potential disadvantages include power struggles, misalignment in vision, and confusion among employees if roles are not clearly defined.