While the CEO position is already recognized as a highly demanding role, multi-CEOs lead not one, but several different companies. As such, this ability to reconcile seemingly incompatible roles presents an intriguing research case.
Recently, the Academy of Management Discoveries published a paper examining this phenomenon. The paper, available without a paywall here, co-authored by Lorenz Graf-Vlachy, Simon Hensellek and Patrick Haack, answers the following research questions: “How do executives come to hold multiple CEO positions?” and “How do they legitimize these unorthodox arrangements in the face of investor and stakeholder concerns?”.
The paper used publicly available archival data concerning four prominent multi-CEOs, Elon Musk (Tesla and SpaceX), Carlos Ghosn (Renault and Nissan), Jack Dorsey (Twitter and Square), and Steve Jobs (Apple and Pixar). The main contribution of this paper is a process model of the legitimation of multi-CEO arrangements. By developing the model, this paper bridges the gap between upper echelons theory and legitimacy theory. Specifically, this paper shows that “the lack of pragmatic and cognitive legitimacy of multi-CEO arrangements can be compensated by the personal and relation legitimacy of the CEO” and provides empirical evidence of compensatory effects across legitimacy dimensions.
While multi-CEOs are not the norm, studying their unique situations offers interesting theoretical and practical implications, as evidenced by the media attention this research article received. Its conclusions were featured in AOM insights as well as mainstream media worldwide such as Forbes and Financial Times.
Reference
Graf-Vlachy, L., Hensellek, S., & Haack, P. (in-press). Multi-CEOs: A legitimacy perspective on executives leading multiple firms. Academy of Management Discoveries. https://doi.org/10.5465/amd.2023.0090
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