Financial Institution Services: Management and Sale of Securities, Advisory Services, and Capital Raising
It's becoming common for investment banks to bring in big-name dealmakers and make them co-heads - but it's not always a breeze.
Inside the Power Struggles and EgosPaul Clarke, Sunday 27 April 2025
Investment banks are giving star players a shot at the top job and sharing the role with another heavyweight – not always an easy feat. Here's the inside scoop on those politically charged co-head positions.
Juggling Expertise: Successes in Shared Leadership
Collaboration between co-heads can pay off, as it allows for a blend of specialized knowledge across various sectors or functions. For example, the harnessing of John E. Mack III's Security & Safety sector expertise and Alper Cetingok's broad leadership in Diversified Industrials at Raymond James has boosted their standing in a fast-growing market [3]. And letting two heads lead results in deeper advisory capabilities and personalized solutions for clients. Mack's long-time experience in Security & Safety, along with advisory work, complements Cetingok's practice leadership, offering a more comprehensive approach to client care [3].
Dealing with Differences: Avoiding the Pitfalls in Shared Leadership
Despite its advantages, shared leadership has its challenges. Differences in leadership styles, decision-making approaches, or strategic visions can cause strain, especially in cross-practice teams. Operational tasks such as preparing materials for co-head groups can be tricky, too, as they require scrupulous coordination to avoid overlaps or gaps [2]. Plus, properly defining roles and responsibilities is crucial to prevent conflicts and ensure smooth collaboration.
Here's a side-by-side comparison:
Success Factors in Co-head Structures
- Diversified leadership with complementary skill sets
- Enhanced client focus through dual perspectives and expertise
- Scalability to manage large-scale operations
Risk Mitigation Needs
- Clear division between advisory and operational roles for role clarity
- Unified communication protocols for client service
- Transparent progress tracking systems to foster operational efficiency
The key to a successful co-head team lies in aligning their strengths with a supportive organizational structure that facilitates role delineation and collaboration mechanisms. Banks like Raymond James and Barclays show us how strategic pairing can capitalize on sectoral growth while addressing leadership complexities [3][4].
- Amid the growth in the finance sector, investment banks like Raymond James and Barclays are experimenting with co-head roles, giving two star players the opportunity to lead together in areas like Security & Safety and Diversified Industrials.
- While sharing leadership can bring benefits, such as a blend of specialized knowledge and deeper client advisory capabilities, it can also present challenges, like differences in leadership styles, decision-making approaches, or strategic visions.
- To make co-head structures successful, banks must implement clear role divisions, unified communication protocols, and transparent progress tracking systems. This will help manage large-scale operations effectively while mitigating potential conflicts.
- In the high-stakes world of banking and trading, co-heads can face a power struggle and ego clashes, but their shared role can work to their advantage if they focus on their complementary skill sets and collaborate efficiently.
- Looking forward to 2025, the co-head trend in investment banking is poised to continue, with more banks likely to tap into the strengths of multiple star players, fostering a new form of leadership dynamism in the industry.
