Why Are More Bosses Sharing the Top Job?
In recent years, a significant shift in corporate leadership has emerged: the rise of co-CEOs. This model, where two individuals share the responsibilities of a chief executive role, is gaining traction across various industries.
The Rise of Co-CEO Leadership
– Board Intelligence Example: For nearly 16 years, Pippa Begg and Jennifer Sundberg co-led Board Intelligence, a firm specializing in analysis and services for company boards. Under their joint leadership, the business expanded to 200 employees and attracted high-profile clients, including Nationwide and Rolls-Royce.
– Begg’s Insight: We are quite different people—very much yin and yang—but I believe decisions are better made with two brains rather than one to avoid hubris, reflects Begg.
This partnership reflects a growing trend where companies adopt co-CEO structures. According to an analysis by MyLogIQ, the number of companies with co-CEOs in the Russell 3000 index has more than doubled from 11 in 2015 to 24 in 2024. Major players like Oracle, Comcast, and Spotify have joined Netflix, which has utilized this model since 2020.
Advantages of Co-CEO Partnerships
While CEO roles typically come with lucrative compensation—averaging 122 times that of the average UK worker in 2022—there are inherent challenges. A survey by ICEO revealed that 56% of top executives felt burnt out in 2024. The co-CEO model can alleviate some of this pressure by:
– Dividing Responsibilities: Co-CEOs can share the workload, which helps in managing stress and preventing burnout. Leadership coach Audrey Hametner notes that this structure allows leaders to balance their responsibilities and take necessary breaks.
– Playing to Strengths: Co-CEOs often complement each other’s skills. One may focus on marketing while the other handles finances, allowing for a well-rounded approach to management.
– Family Time: Sharing responsibilities can also offer co-CEOs more time with their families. A Russell Reynolds survey found that 60% of CEOs feel they spend too little time with family. Begg herself managed to take three maternity leaves, a rarity among CEOs, with the co-CEO model supporting her need for work-life balance.
Real-Life Examples of Co-CEOs
– Anything’s Co-CEOs: Dhruv Amin and Marcus Lowe, co-founders of the startup Anything, which specializes in vibe coding, found that their partnership allowed them to share paternity leave, stabilizing their personal lives alongside their professional duties.
– Payment Platform Enfuce: Denise Johansson and Monika Liikamaa, co-founders of Enfuce, have demonstrated how co-CEO arrangements can provide essential support during personal crises, like Johansson’s recent bereavement.
Challenges to the Co-CEO Model
Despite its benefits, the co-CEO structure isn’t without challenges. High-profile examples like Salesforce, SAP, and Marks and Spencer demonstrate that such arrangements often last only a couple of years before reverting to a single-CEO model. Tierney Remick of Korn Ferry highlights that co-CEO arrangements thrive in less complex environments where both leaders are already familiar with each other. This familiarity can minimize power struggles and ensure alignment in vision.
Additionally, co-CEO structures can serve as a form of succession planning, especially as the pool of ready-now CEOs becomes scarcer. Organizations are increasingly seeking innovative ways to develop potential leaders amid ongoing market changes.
Conclusion
The trend of co-CEOs is redefining leadership in the corporate world. It allows for better decision-making, improves work-life balance, and enables a more flexible approach to responsibilities. However, it remains a nuanced model that requires careful selection of leadership pairs to avoid common pitfalls. As businesses evolve, the co-CEO model may pave the way for a more collaborative and balanced leadership landscape, where the burdens of responsibility are shared, and personal lives are prioritized alongside corporate goals.