The traditional corporate structure places a single chief executive officer at the top, serving as the ultimate decision-maker. This model concentrates authority and accountability in one individual, a concept long considered standard business practice. However, an alternative approach challenges this convention: appointing two individuals to share the role of CEO. This unconventional structure is gaining attention as businesses navigate increasingly complex and dynamic environments.
The Co-CEO Leadership Model
The co-CEO model is a leadership structure where two individuals jointly hold the chief executive officer position, sharing the duties and responsibilities that traditionally belong to one person. Corporate law does not prohibit such a structure; the board of directors holds the authority to establish the company’s executive framework. This model is a distinct departure from the common CEO and chief operating officer (COO) hierarchy, as it positions both leaders as equals.
This arrangement allows two executives to share the ultimate responsibility for the company’s performance and strategic direction. The specific implementation can vary, with some pairs dividing responsibilities based on functional expertise, while others might split duties geographically or by business division. The core principle is that two people share a single, top-tier executive office.
Why Companies Adopt This Structure
Companies turn to a co-CEO model for several strategic reasons, often tied to navigating complexity and fostering growth. A primary driver is the opportunity to combine complementary skill sets. For instance, a visionary leader can be paired with an executive who excels at operations, creating a balanced leadership team. This structure allows each leader to focus on their strengths, providing more in-depth management.
The model is also valuable for companies experiencing rapid growth or significant disruption. In these demanding environments, dividing the workload between two leaders can lead to more effective management and prevent executive burnout. Furthermore, the structure can be an effective tool for succession planning, where an incoming leader serves alongside a seasoned CEO to ensure a smoother leadership transition.
Potential Challenges and Risks
Despite its potential benefits, the co-CEO structure presents challenges that can lead to organizational friction. A primary risk is the dilution of accountability. When two people are in charge, it can become difficult for the board and external stakeholders to determine who is ultimately responsible for specific outcomes, potentially leading to a blame game.
Decision-making can also be slower, as the need for both leaders to consult and reach a consensus on major strategic issues can create bottlenecks. This is especially problematic if the co-CEOs have differing visions for the company’s future, which can lead to internal power struggles. These conflicts can create confusion throughout the organization, as employees may receive conflicting directives.
Famous Examples of Co-CEO Structures
- Atlassian: The software company represents a long-running and successful implementation of the model. Founders Mike Cannon-Brookes and Scott Farquhar have shared the top job since 2002, a success attributed to a partnership built on shared vision and complementary skills.
- Netflix: From 2020 to 2023, Ted Sarandos was elevated to co-CEO alongside Reed Hastings. This arrangement was part of a long-term succession plan, successfully positioning Sarandos to take over when Hastings transitioned to executive chairman.
- Research in Motion (Blackberry): The case of RIM is often cited as a cautionary tale. Critics argue the shared structure under co-CEOs Jim Balsillie and Mike Lazaridis led to a lack of clear direction and an inability to respond decisively to competitive threats, contributing to the company’s decline.
- Chipotle: Founder Steve Ells shared the role with Monty Moran, a structure initially credited with helping the company expand rapidly. Following a series of food safety crises, the board abandoned the model to simplify decision-making and create clearer lines of accountability.
- Oracle: The tech giant appointed Mark Hurd and Safra Catz as co-CEOs in 2014. Their roles were clearly delineated: Catz managed financial and legal operations, while Hurd was responsible for sales and marketing. This structure remained in place until Hurd’s death in 2019.
Key Factors for Success
The success of a co-CEO leadership model hinges on several factors that mitigate its inherent risks. A clear and explicit division of responsibilities is a primary factor. Without clearly defined roles, ambiguity and conflict are almost inevitable. Each leader must have a distinct domain of authority, whether divided by function or geography, to ensure accountability.
A deep sense of mutual respect and a shared vision for the company are also foundational. The two leaders must be able to work as partners, prioritizing the company’s success over personal ego or ambition. This requires transparent communication and the ability to debate to reach a consensus. A supportive board of directors is another component, acting as a mediating body if disputes arise and ensuring the structure serves the company’s interests.