"The percentage of companies led by co-CEOs hasn't changed much over the past five years, data firm Equilar found. It hovers around 1.2% of the Russell 3000 index, a broad measure of the US stock market. Yet more companies could adopt this structure, even temporarily, as forces like AI create a dizzying pace of change for leaders and prompt companies to rethink operations."
"There is evidence that organizations with two leads perform better. Companies with two CEOs posted an average annual shareholder return of 9.5% from 1996 to 2020, a 2022 study by Harvard Business Review found. That was better than the 6.9% gain by single-leader companies in the S&P 1200 and the Russell 1000 in the same period. Although the divide-and-conquer approach offers benefits, it also presents unique challenges."
Co-CEO arrangements have appeared at firms including Oracle, Comcast, and Spotify, with multiple companies naming two CEOs in quick succession. The prevalence of co-CEOs has remained around 1.2% of the Russell 3000 over the past five years, according to Equilar. Drivers for the structure include rapid technological change, especially from AI, and the need to rethink operations. Historical data show companies with two CEOs achieved average annual shareholder returns of 9.5% from 1996 to 2020, outperforming single-leader peers. The model offers divide-and-conquer benefits but raises challenges around clear accountability, role definition, and board reluctance, and is used both temporarily during transitions and longer term.
Read at Business Insider
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