Co-CEOs: Can Shared Power Boost Profits or Breed Conflict?

The co-CEO model is gaining traction as corporations increasingly adopt shared leadership to navigate complex business environments. Companies such as Spotify, Oracle, and AlixPartners have recently appointed co-CEOs, reflecting a broader trend in corporate governance. According to Boardroom Alpha, fewer than 40 public companies in the U.S. currently operate with dual CEOs, but recent announcements suggest a shift toward this structure. The model emphasizes specialization, with leaders dividing responsibilities based on expertise, and aims to address the unsustainable demands of modern CEO rolesBusiness Insider, (https://www.businessinsider.com/co-ceos-on-benefits-having-shared-responsibilities-2025-10)^[1].

Research from Harvard Business Review underscores the potential benefits of co-CEOs. A study of 87 public companies with shared leadership found that these firms achieved an average annual shareholder return of 9.5%, outperforming the 6.9% benchmark for companies with sole CEOs. Nearly 60% of co-CEO-led firms outperformed their peers, with leadership stints averaging five years-comparable to solo CEOs. The study highlights the model's ability to leverage complementary skills, reduce blind spots, and accelerate decision-making in areas like AI innovation and risk managementHarvard Business Review, (https://hbr.org/2025/09/when-two-leaders-are-better-than-one)^[2].

Practical examples illustrate the model's implementation. At fintech firm Trumid, co-CEOs Mike Sobel and Ronnie Mateo have divided responsibilities to streamline operations and strategic vision. Sobel oversees day-to-day operations, while Mateo focuses on sales and company culture. Their approach includes clear accountability and a "disagree and commit" philosophy, where conflicts are resolved through shared goals rather than power struggles. Similarly, Merit America's co-CEOs, Connor Diemand-Yauman and Rebecca Taber Staehelin, attribute their success to mutual trust and a willingness to challenge each other's decisionsBusiness Insider, (https://www.businessinsider.com/co-ceos-on-benefits-having-shared-responsibilities-2025-10)^[1].

The model's adoption is not without challenges. Critics note that co-CEOs can face communication hurdles, overlapping responsibilities, and personality clashes. For instance, Marks & Spencer returned to a single-CEO structure after a brief experiment with co-leadership, citing the need for unified decision-making. Netflix's co-CEOs, however, have navigated transitions smoothly, with Reed Hastings and Ted Sarandos gradually shifting roles to ensure continuity. Success often hinges on clearly defined roles, cultural alignment, and a commitment to collaborationConsulting News, (https://www.consulting.us/news/11268/alixpartners-announces-david-garfield-and-rob-hornby-as-co-ceos)^[4].

Recent appointments highlight the model's growing appeal. Spotify will transition to co-CEOs in 2026, with Gustav Söderström and Alex Norström leading operations and business strategy, respectively. Oracle's new co-CEOs, Clay Magouyrk and Mike Sicilia, aim to drive AI integration, while AlixPartners promoted David Garfield and Rob Hornby to co-CEOs in 2025. These moves reflect a strategic response to market demands, with leaders emphasizing agility and shared accountabilityForbes, (https://www.forbes.com/sites/deandebiase/2024/03/02/why-your-organization-may-need-co-ceos-now/)^[6].

Despite its advantages, the co-CEO model requires careful implementation. Harvard Business Review warns that without mutual respect and clear boundaries, co-leaders may face conflicts or inefficiencies. Companies like SAP and BlackBerry have abandoned the structure due to poor execution, underscoring the importance of cultural fit and leadership compatibility. For the model to succeed, organizations must prioritize transparency, trust, and a unified vision.

The co-CEO model is reshaping corporate leadership, offering a framework to address the multifaceted challenges of modern business. While data suggests its potential to enhance performance, its success depends on deliberate role design and cultural alignment. As companies like Spotify and AlixPartners embrace this structure, the business world continues to evaluate whether shared leadership can become the new norm.