Disney has considered a co-CEO structure to replace Bob Iger. Its history may make that a bad idea

Core Insights - The article discusses the potential co-CEO model for Disney, drawing comparisons to Netflix's successful dual leadership structure, which has led to a significant increase in Netflix's stock value since the appointment of co-CEO Peters in January 2023, with shares gaining about 275% [3] Group 1: Netflix's Co-CEO Model - Netflix's co-CEO model, featuring Sarandos and Peters, allows for effective decision-making by leveraging their distinct areas of expertise, with Sarandos focusing on content and Peters on technology [2] - The dual leadership structure at Netflix has been facilitated by a non-hierarchical corporate culture and the presence of co-founder Hastings, who can act as a tiebreaker when necessary [3][14] - The success of Netflix's co-CEO arrangement is attributed to the long-standing working relationship between Sarandos and Peters, which contrasts with the relatively shorter collaboration between potential Disney co-CEOs Walden and D'Amaro [9] Group 2: Disney's Leadership Challenges - Disney's potential co-CEO arrangement may risk losing a top executive if the board favors one candidate over the other, as seen in the past with the departure of streaming chief Kevin Mayer [5] - The presence of Iger on the board could undermine the power-sharing structure of a co-CEO model, as employees may still view him as the primary leader [6][7] - Disney's corporate culture is described as politically charged, which may complicate the implementation of a co-CEO structure, as historical succession processes have been fraught with challenges [11][12] Group 3: Governance Perspectives - Traditional corporate governance experts generally view co-CEO structures as suboptimal, with only about 1.2% of companies in the Russell 3000 employing such a model [13] - Experts argue that having two sources of authority can lead to confusion and instability within an organization, suggesting that a single CEO may be a more effective approach for Disney [14][16] - While Iger could serve as a tie-breaking figure, his lack of significant ownership in Disney diminishes his influence compared to founders or controlling shareholders in other companies [16]