An increasing number of companies are appointing co-CEOs to replace longstanding bosses in a trend that could trickle down to startups and SMEs.
In recent years, big names including Spotify, Netflix, Oracle and Comcast have all opted to adopt a co-CEO leadership structure.
The model has huge benefits, especially when it comes to winning funding, as responsibility is shared therefore potentially mitigating the burnout that founders report.
However, while many startups have co-founders from the beginning, is this a model that SMEs should be looking at?
What is the co-CEO trend?
The trend, which has been picked up by Reuters and Quartz, among others, has seen companies either replace a solo CEO with two co-CEOs like Spotify, or bring in a new CEO to join an existing leader.
Spotify’s CEO, Daniel Ek, has held his role for nearly two decades but is now handing over to co-presidents Alex Norström and Gustav Söderström, who will work together from January 1 2026.
The duo had already been serving as co-presidents, but each had a different focus. Söderström was Chief Product and Technology Officer, while Norström was Chief Business Officer.
In the announcement, Spotify singled out the pair’s differing focusses as a strength; but also the fact that they have worked together for more than 15 years.
The two said in a joint statement: “We’ve worked together a very long time and have seen Spotify through many different chapters…While we bring different experiences and perspectives to the CEO role, we both have a strong bias to action and can’t wait to get started knowing that we will have Daniel’s full partnership and ongoing support.”
Comcast has taken a different approach. Brian L. Roberts has held the role of CEO since 2002, but announced last month that the company’s president, Mike Cavanagh, will be joining him as co-CEO. While news reports suggest that this is succession planning, Roberts stated that the two CEOs are looking forward to working together “for years to come”.
Why are companies appointing co-CEOs?
A study quoted by the Harvard Business Review showed that the co-CEO structure often translates into better results.
The team studied 87 public companies between 1996 and 2020, which were being led by co-CEOs, and found that “they generated average annual shareholder returns of 9.5% while the duo was in charge, better than the 6.9% average for each firm’s relevant index”. This equated to nearly 60% outperforming ventures with a single CEO.
The study also recorded that the average tenure was around five years, which was “on par with solo CEOs”. Success seems to pivot on bringing two people together who have complementary abilities and clearly defined roles; and if this works, the model can last.
Another clear advantage is that co-CEOs can support each other, especially when it comes to seeking funding. Investors recognise this. As one blogger wrote on Medium: “Solo founders make investors nervous. Startups are lonely and exhausting, and a single founder is more likely to burn out or slow down without a strong support network.”
However, the success of a co-CEO relationship is dependent on both individuals working well together; and being able to deal with any friction, especially in high stress situations.
Can co-leading work for SMEs?
It is important to point out that while there is an upwards trend – the majority of companies still operate with one leader who is supported by a C-Suite. Executive search firm Heidrick & Struggles reports that of the Fortune 1000 companies, 14 have co-CEOs in place in 2025.
Also, for some SMEs, the model is irrelevant. According to government statistics, just over four million small to medium businesses have no employees on their books. Bringing in a partner in this situation would be a huge financial decision.
For larger ventures, bringing on board a co-CEO would mean the founder (who usually holds the role of CEO) delineating what responsibilities they would like to hand over. This delineation of roles is essential.
There would also need to be decisions made on the equity share in the company – namely whether this should be a 50/50 split; as well as if equity should dictate voting rights.
However, the key deciding factor for whether this model can work will be financial. Bringing a CEO into a venture – whether as a co-CEO or sole leader – is expensive. Their salary and equity must be weighed up with the growth that their appointment is hoped will bring.
