Business Insider·2025-09-30 19:49Core Insights - The trend of companies adopting co-CEO structures is increasing, with recent examples including Oracle, Comcast, and Spotify [1][2] - Organizations with dual CEOs have shown better performance, with an average annual shareholder return of 9.5% from 1996 to 2020, compared to 6.9% for single-leader companies [3] - The co-CEO model presents both advantages and challenges, particularly in defining roles and responsibilities [4][12] Group 1: Co-CEO Structure - The percentage of companies with co-CEOs remains around 1.2% of the Russell 3000 index, indicating a stable but niche adoption of this model [1] - Companies like Spotify and Comcast are exploring this structure, with Comcast's co-CEO arrangement seen as a potential succession strategy [5][14] - Netflix has implemented a long-term co-CEO model, while other companies like Chipotle reverted to a single CEO after challenges [6][16] Group 2: Performance and Governance - A study by Harvard Business Review indicates that dual-CEO companies outperform their single-leader counterparts in shareholder returns [3] - Effective governance in a co-CEO setup requires clear delineation of roles to avoid power struggles and ambiguity [12][15] - Leadership experts emphasize the importance of communication and alignment between co-CEOs to ensure stability and success [13][19] Group 3: Challenges and Considerations - The co-CEO model can lead to confusion regarding authority and decision-making, which may deter boards from adopting it [4][18] - Companies must carefully manage the dynamics between co-CEOs to prevent imbalances of power and ensure effective collaboration [16][20] - The financial implications of having two CEOs, including dual compensation packages, are a consideration for companies evaluating this structure [18]