Co-CEO model: The leadership model behind the success of some tech companies

There’s no question that technology companies have been impactful in society. What’s interesting is that their success and impact can be attributed to more than just technology but also their management and leadership approaches. The leadership model applied in some tech companies is becoming a subject worthy of attention.

Recently, Yoco announced a leadership transition that also highlighted a move towards a co-CEO model. Two of the company co-founders were appointed as co-CEOs. Both Lungisa Matshoba and Bradley Wattrus while the former CEO, Katlego Maphai, will also remain in some way. It’s an interesting move by one of the most successful technology startups in South Africa. It’s a move that will be studied for many years as this company grows. Yoco is not alone in adopting the co-CEO model. 

Spotify founder and CEO Daniel Ek also recently announced that he will step down from his leadership role after nearly two decades. Ek will serve as the company’s executive chairman, and two former co-presidents—Gustav Söderström and Alex Norström—will share the role as co-CEOs. Sharing the top position at a major company is still a relatively uncommon practice. But more technology companies are testing the arrangement.

Recently, Comcast announced that a second CEO, Mike Cavanagh, will be stepping in come January to share the role with Brian Roberts. Oracle also recently made a similar announcement. Meanwhile, Netflix has been led by two CEOs for more than five years, the current partnership being Ted Sarandos and Greg Peters.

The co-CEO trend hasn’t been studied extensively. But a 2022 Harvard Business Review (HBR) report found that from 1996 to 2020, out of 2 200 companies listed in the S&P Global 1200 and the Russell 1000, fewer than 100 had dual leaders. 

Some say the arrangement is a surefire way to stay focused on the company’s mission rather than on personal accolades. Chip Kaye, a former co-CEO of Warburg Pincus, told HBR that it forces leaders to “keep their egos in check.”

Likewise, the research pointed to some promising findings, like a greater annual shareholder return. Companies led by joint CEOs generated 9.5% compared with 6.9% for solo-led companies. In fact, around 60% of the joint-CEO-led companies outperformed the ones with solo leaders. But some co-leaders argue it’s a positive arrangement. 

Netflix’s Sarandos told Fast Company’s Amy Wallace last September: “Having someone to talk to who is not an employee or a board member—who is your peer—is so helpful.” He also said having a partner to share authority with is a relief. “It is that lonely-at-the-top thing. The saying came from somewhere.”

Still, the offbeat arrangement requires careful consideration.

Partnerships like these need to be executed carefully, as sole CEOs tend to remain in power longer than co-CEO partnerships do, an analysis from The Wall Street Journal found.

Don Yaeger, executive coach, author, and host of the Corporate Competitor Podcast, tells Fast Company that co-CEOs have to put their egos aside for the setup to work—and, ideally, have “opposing skill sets” in order to best serve the company. 

“You need two people who do not feel ‘less than’ when someone else is the focal point of interviews or stage time,” Yaeger explains. “The second that one starts resenting the other, the wall comes crumbling down.”

Likewise, Yaeger says that companies need to have a “clear delineation” of the responsibilities of each CEO. He cites the Netflix example as one company that is paving the way for how to put that into practice. “Sarandos is outward-facing with marketing, while Greg Peters is more inwardly focused on product and operations.” 

Oracle also recently appointed co-CEOs to lead the company into the AI age: Clay Magouyrk, who’d most recently led cloud infrastructure and AI training operations, and Mike Sicilia, who’d been overseeing industry application suites, including AI agents. (They replaced Safra Katz, who was herself a co-CEO with Mark Hurd until he resigned for health reasons before succumbing to cancer.) The rationale for the new dual leadership structure is complementary business expertise and shared commitment to AI. But it will take more than that for Magouyrk and Sicilia to work well together.

While some organisations have flourished with co-CEOs — think of Netflix under Ted Sarandos and Reed Hastings and now Sarandos and Greg Peters — others have struggled.  In 2020, for example, SAP dismantled its dual CEO structure after just six months, citing the need for “clearer accountability and faster decision-making“ during the turbulent times of the pandemic. So why do some co-leadership arrangements thrive while others collapse under pressure? The answer lies in attitudes and execution, not concept. Co-leadership isn’t inherently good or bad. It’s a tool that amplifies whatever design choices, intent, and discipline you bring to it. Next time you study technology companies and the reasons behind their success, pay attention to their leadership and management and not just technologies.

Wesley Diphoko is the Editor-In-Chief of FastCompany (SA)

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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