Multiple CEOs Can Create Strategic Advantage

Multiple CEOs Can Create Strategic Advantage

This week’s move by Samsung to name two more individuals to the post of chief executive officer — giving the company three CEOs — is making news on MarketWatch, which reports, “And experts say there’s good reason to be optimistic about such moves.”Steve Langerud, director of professional opportunities at DePauw University, says, “I see co-CEOs as a viable and strategic advantage to both employees and shareholders.” Quentin Fottrell writes, “But (Langerud) says it’s ‘critical’ to develop a structure for implementing the company’s strategy, and to craft distinct agendas for each CEO.”

The piece notes, “Research suggests shareholders tend to like joint CEOs — at least at first. In a study of over 100 public companies with co-CEOs published last year, the stock rose a cumulative average of 6% in the day before and after the announcement of a dual leadership. But the survey, by Stephen P. Ferris, a professor at the University of Missouri business school, found that only 45% of these joint company CEOs had complimentary educations and job responsibilities.”

Read Quentin’s story.