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When the CEO Job Is Split in Two
Dividing the post often leads to grief. But Aéropostale's new bosses know how to work together. Management pundits have long warned about the perils of appointing co-CEOs. Attempts to split the CEO role over the years have led to clashing egos and crippling power struggles at such companies as Goldman Sachs (GS), Citigroup (C), Martha Stewart Living Omnimedia (MSO), Charles Schwab (SCHW), Unilever (UL), and Kraft Foods (KFT). The record is so bad, in fact, that many wonder why any board would split the role, particularly in a recession when decisiveness is key. "It's a marriage of convenience," says Michael Useem, a management professor at the Wharton School. "But like all marriages of convenience, it tends to lead to divorce pretty quickly." So some might wonder whether teen apparel retailer Aéropostale (ARO) is sabotaging its success with its Sept. 24 announcement that CEO Julian R. Geiger would step down at the end of the year, to be succeeded by President Mindy C. Meads and Chief Operating Officer Thomas P. Johnson. But analysts took the news in stride, citing the retailer's "team-oriented culture" as a reason why the board paired Meads, who handles merchandising, with Johnson, who heads store operations. "They work very well together," says UBS (UBS) analyst Roxanne Meyer. "That's unique, especially given the egos in retail." (Aéropostale declined to comment.) When the CEO Job Is Split in Two - BusinessWeek
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Its quite an interesting issue.
Personally, I'm believer that most serious decisions are done with the backing of your team. If your idea and argument is sound enough, then you can sell it to your management team. If you cant, 9 times out of 10 someones spotted something that needs addressing. But occassionally you may have to railroad something, normally when the gut instict kicks in, and times like that you cant vote by committee, you need a single "buck stops here" decision maker. I cant imagine splitting that authority.
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