Are Two C.E.O.s Better Than One? (Update) - Freakonomics Radio Recap

Podcast: Freakonomics Radio

Published: 2025-10-29

Duration: 48 min

Summary

The episode explores the growing trend of companies adopting co-CEO structures and examines whether this model can lead to better performance compared to traditional single-CEO setups.

What Happened

In this episode, Stephen Dubner revisits the concept of co-CEOs, a trend gaining traction among major companies like Spotify and Oracle. The discussion is sparked by a question from a tech entrepreneur who wonders if having two CEOs might enhance company performance. Dubner introduces us to Mark Feigen, a CEO advisor who initially approached the idea with skepticism but later found compelling data supporting the co-CEO model.

Feigen's research examined 2,200 publicly traded companies over more than 20 years and revealed only 95 instances of co-CEOs. Despite their rarity, those companies with dual leadership exhibited nearly 40% higher annual shareholder returns than their single-CEO counterparts. This finding prompts a deeper conversation about the complexities of modern business management and the shifting dynamics of leadership. Dubner and Feigen ponder the historical context of leadership structures, noting that while many organizations still favor a single leader, the increasing complexity of running a company may warrant a reevaluation of this approach.

Key Insights

Key Questions Answered

What benefits do co-CEOs provide?

Mark Feigen highlights that having co-CEOs can enhance productivity and happiness within the company. His research suggests that the dual leadership model allows for a division of responsibilities, enabling each CEO to shine in their areas of expertise. This partnership can lead to better decision-making and innovation, as the combined knowledge and skills of two leaders can address the complexities of modern business more effectively.

Why are co-CEOs still rare in public companies?

Despite the advantages, co-CEOs remain uncommon, particularly in publicly traded companies. Feigen's study found only 95 instances of co-CEOs among 2,200 companies surveyed over two decades. This rarity may stem from historical tendencies towards single leadership in corporate structures, which are often seen as more straightforward and easier to manage.

What did Feigen discover about co-CEO performance?

Feigen's analysis revealed that companies with co-CEOs had nearly 40% higher annual shareholder returns compared to those led by a single CEO. While this finding is compelling, he acknowledges that the study lacked the robustness of peer-reviewed research, as it did not control for various external factors that might influence performance. Nevertheless, the results have led him to advocate for a closer examination of the co-CEO model.

How do historical leadership models influence current practices?

Feigen discusses the evolution of leadership structures, noting that many organizations have traditionally favored a single, top-down leader model. This historical context reflects a militaristic approach to management, where command and control were paramount. However, as businesses become more complex, the need for collaborative leadership, like co-CEOs, is gaining traction, suggesting a shift in how organizations may operate in the future.

Are there examples of successful co-CEO partnerships?

The episode hints at successful examples of co-CEOs, such as those at companies like Chipotle and SAP. These partnerships illustrate that when co-CEOs work well together, they can leverage their combined skills to enhance company performance. However, the episode also acknowledges that not all attempts at co-leadership have been successful, emphasizing the importance of compatibility and clear roles in such arrangements.