Dual Leadership Shake-Up: Indian Companies Eye Co-CEO Model Amid Global Trend?

The concept of two leaders sharing the top executive role, known as the co-CEO model, is gaining traction globally, with companies like Comcast, Oracle, and Spotify transitioning to this structure. This trend is now sparking discussions in India, with some companies, particularly in technology-enabled services, diversified groups, consulting, private equity, and investment banking, exploring shared leadership.

Recent examples in India include L Catterton appointing Vikram Kumarswamy as India co-head alongside Anjana Sasidharan, Synergy Marine Group naming Vikas Trivedi to jointly lead with Ajay Chaudhry, and Innotera elevating Avinash Kasinathan as group co-chief.

Experts like Ronesh Puri, MD, Executive Access India, believe this trend will grow significantly, potentially fivefold in five years. He argues that the CEO role has become too complex for one person to manage effectively in today's unpredictable world, leading to shorter tenures and increased burnout. Co-leadership can distribute the load, enhance resilience, and create a natural system of checks and balances.

However, Priyanka Gulati of Grant Thornton Bharat notes a shortage of CEO-ready leaders in India, with less than 10% of senior executives considered succession-ready. Harsh Goenka, chairman of RPG Enterprises, voices skepticism, stating that India's corporate culture is personality-driven, favoring a single decisive leader. He believes shared leadership can blur accountability, slow decisions, and create divided direction, hindering decisive success.

Impact This trend could reshape corporate governance and leadership structures in India, potentially leading to more resilient companies but also raising questions about decision-making efficiency and accountability. For investors, it introduces a new factor to consider when evaluating management quality and corporate strategy. Rating: 5/10

Difficult Terms: Co-CEO structure: A leadership model where two individuals share the responsibilities and authority typically held by a single Chief Executive Officer.

Diversified groups: Companies operating in multiple, unrelated industries.

Private equity: Investment funds that buy and manage companies not listed on public stock exchanges.

Investment banking: Financial services firms that help individuals, corporations, and governments raise capital and provide strategic advice.

Burnout: A state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress.

Checks and balances: A system that limits the power of one person or group by distributing authority and requiring mutual oversight.

Succession ready: Prepared to take on a senior leadership role, such as CEO, when a vacancy arises.