The joint leadership system is taking hold of businesses to a surprising degree, with Spotify’s co-CEO model the latest to show us how it’s done. Spotify founder and CEO Daniel Ek has agreed to step down from his position into the role of executive chairman next year in January. Current executives Gustav Soderstrom and Alex Norstrom are set to take on the CEO role together, collaborating to help the business navigate the chaotic market landscape.
Spotify’s CEO transition should allow fresh talent to lead the organization out of the slump the business has found itself in, but there is some doubt about the effectiveness of this updated approach. Does the dual CEO model have many benefits to offer? That is the question of the hour.
Along with Comcast and Oracle, Spotify has also switched to a co-CEO structure that puts two leaders in charge of the organization. (Image: Freepik)
Understanding Spotify’s Co-CEO Model and What It Means for the Organization
The Swedish music streaming company is arguably one of the biggest platforms for accessing music in 2025, and it has long been a leader of the industry, offering its customers access to one of the largest collections of music around. While the business has gradually drifted away from its free services, which has been upsetting for customers, it recently revived some of the faith in its operations with lossless streaming. For employees as well, the company’s remote work policy has been a welcome offering.
All things considered, Spotify’s leadership change doesn’t come as a complete surprise. Ek’s decision to step down has been appreciated by investors, and the change should allow for a more updated approach to organizational operations.
Spotify’s Leadership Change Introduces Executives Soderstrom and Norstrom to the Helm
Spotify’s co-CEO model is expected to be led by Gustav Soderstrom and Alex Norstrom, both of whom have spent many fruitful years at the organization. Soderstrom joined Spotify in 2009, and he has since taken on many roles at the company. His latest position was that of Chief Product and Technology Officer, where he oversaw the company’s global tech strategy and progress on product development.
Alongside him we have Norstrom, who joined Spotify in 2011. His 14 years at the organization have also allowed him to take up an array of leadership roles in the past. From Chief Business Officer, he will now turn CEO.
Why Are Co-CEOs Trending in 2025?
Co-CEOs are not a novel concept, as the practice has been implemented many times in the past, but the abrupt rise of the joint leadership model recently has brought up many questions. Data from a 2022 Harvard Business Review study showed that businesses with two CEOs saw annual shareholder returns of 9.5% between 1996-2020. In comparison, those with a solo CEO saw smaller gains of 6.9%.
The difference isn’t groundbreaking and the data is a little outdated, but it’s possible than in the chaotic, AI-driven market today, two heads might be better than one. In many situations, co-CEOs have served as temporary leaders during a period of change, managing different aspects of operations until the single-leader system made a return. Whether Spotify’s co-CEO model and the general trend we’ve seen at companies like Comcast and Oracle will last remains to be seen.
Does the CO-CEO Setup Work?
The co-CEO model isn’t a good or bad one by design. Depending on the needs of the organization, the planning done to enforce the system, and the specific leaders who are selected for the roles, the results of the change can vary. Netflix is a prime example of a company that has effectively managed a joint leadership model.
The company switched to this model back in 2020, with Ted Sarandos and Reed Hastings donning the co-CEO roles. Since then, Hastings has stepped down from the position, but Greg Peters rose to the occasion in 2023 and has been a part of the CEO segment ever since.
Oracle recently announced its own co-CEO set-up, allowing Clay Magouyrk and Mike Sicilia to jointly lead the organization. Both leaders have experience with AI and in managing business operations, and the idea is to allow their expertise to combine forces to settle on the ideal path forward for the business. It is too soon to speculate on just how successful their united effort will be, but the two may find a way to lead without getting in the other’s way.
What Are the Benefits of the Dual CEO Setup?
There are a considerable number of pros and cons to the joint leadership model. The matter of fair division of pay and benefits may not seem like a challenging problem for the organization, but considering the rising pay scale proffered to CEOs, it is a problem that falls to HR and the board. The considerations don’t stop there.
On one hand, having two CEOs complicates the division of responsibility between the two, as both are likely to have a separate vision for the overall business, and most internal operations are finely interconnected, making it hard to draw the line. On the other hand, this division of responsibility also allows major segments of the business to get the full dedication of the leader minding the helm.
Despite the many benefits of the dual CEO model, it’s also important to consider who takes the fall for the underperformance of the organization. If tasks are not divided clearly, the fallout from a poor fiscal phase can become very messy. Switching to a two-CEO set-up takes considerable planning that is only possible after understanding the business goals and the company culture. It isn’t a decision that can be made just to keep up with the trends.
Leadership Training and Succession Planning Is Now More Important than Ever
Spotify’s leadership changes and the rise of the co-CEO model are a good reminder that leadership training and succession planning are of utmost importance in 2025. Whether your business decides to stick to a single CEO set-up or explore the benefits of a dual CEO model, it is best to train executives and other key members of the team to be prepared for leadership roles.
Not only does this make the transition to CEO easier, but it also allows the business to elevate other members of the organization to leadership roles when a position is vacated at the top. When an existing executive is promoted to the CEO position, their previous role is left empty. Such a space cannot be left unmonitored for long. Having a clear idea of who can take over is essential for any organization, even those that aren’t planning to change their hierarchical structure radically just yet.
What do you think about Spotify’s decision to adopt a co-CEO model rather than assign a single leader to the role? Let us know what you think. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.