Workday, a prominent cloud software company, has adopted a co-CEO model as part of its leadership transition strategy. Carl Eschenbach, formerly a partner at Sequoia Capital, assumed the role of sole CEO in February 2024 after jointly serving with Workday founder Aneel Bhusri for over a year. This innovative approach contrasts with the trend of companies like Salesforce and Oracle abandoning the co-CEO structure, or those like Netflix and KKR employing it sparingly, despite cautionary advice from corporate governance experts.
Eschenbach emphasizes the success of Workday's co-CEO model, attributing its effectiveness to careful planning and transparency throughout the transition process. Despite the potential pitfalls associated with dual leadership, including power struggles and mixed messaging, Eschenbach believes that a complementary skillset and a shared commitment to core values and the company's mission have facilitated a smooth transition. Workday's growth during this period, marked by surpassing 65 million users and bolstering its executive team, serves as a testament to the efficacy of the co-CEO mentorship approach. Eschenbach advises other companies considering similar transitions to prioritize rapport-building, humility, and mutual respect between leaders to ensure a successful outcome.
