What: The HBR shows that companies with a co-CEO structure have consistently overperformed in the past 25 years in the US.

Why it is important: The IADS welcomed the former co-CEO of Whole Foods Market in 2021, who stated that this structure allowed to have right and left brain, fully working together. The FT makes a parallel with some rumours regarding Goldman Sachs.

Rumors suggest that Goldman Sachs is considering a co-CEO leadership structure in the wake of challenges faced by its current CEO, David Solomon. Unverified reports indicate that Jim Esposito and Marc Nachmann might be the potential candidates for these roles. This discussion has gained traction especially after Swiss group Vontobel recently announced a similar co-CEO leadership structure.

Historically, the dual CEO approach has yielded mixed results. For instance, First Republic had adopted the co-CEO model but faced leadership issues, which might have contributed to a crisis later resulting in a rescue by JPMorgan Chase. Deutsche Bank, under the co-leadership of Anshu Jain and Jürgen Fitschen, faced challenges due to internal conflicts and external pressures, which left the bank in a weakened position.

Tech companies like Netflix, Salesforce, Oracle, SAP, and BlackBerry have experimented with this leadership model, but not all sustained it. BlackBerry, for instance, faced significant market challenges under its co-CEOs.

Despite some of the negative outcomes, a Harvard Business Review study found that on average, companies with co-CEOs significantly outperformed their counterparts. The success of such a structure appears to be more pronounced in the tech sector and where there's a clear division of tasks and responsibilities, often leveraging complementary skills.

Historically, Goldman Sachs, when unlisted, had often been successfully led by co-heads. John Whitehead, a former co-head of Goldman, believed that dual leadership could lead to better decision-making. Considering the bank's multifaceted operations, reintroducing a co-CEO model might be a valid consideration for its future.

Is co-CEOs a viable structure?