Sharing the Thrown: Co-CEO and Co-Chairman Leadership Structure, Firm Performances and Risk Level

Abstract

This investigation is among the first to analyse the impact of Co-Leadership structures on firm performances and risk level, considering not only companies with two or more CEOs at the same time but also with two or more Chairmen of the Board or, even more unusual, with two or more CEOs and Chairman of the Board at the same time.

The results describe something quite new in the area: in companies with Co-CEOs the return to shareholders is higher than in companies with solitary CEOs however, only in the long term. This would appear to be one of the most important reasons why the shareholders of these companies agree to maintain this leadership structure over several years.

The results also suggest that in companies with two or more CEOs, firm performances are greater than in solitary CEO firms. However, in companies with a Co-Chairman or with a Co-CEO and Co-Chairman at the same time, firm performances are not statically different from those in companies with a solitary CEO and Chairman. It is also possible to conclude that a Co-CEO leadership has no impact on firm performance, nonetheless, companies with a Co-CEO or Co-CEO and Co-Chairman at the same time are riskier than companies with solitary leaders.

Keywords: Co-CEO, Co-Chairman, performances, Return to Shareholders, firm risk

JEL Classification: G30, G32, J31, J33