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- [00:01]
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Grainger knows when you're a procurement manager for an office park, you're not managing one building, you're managing all of them. And to stay ahead, you need to see through walls and around corners. Lights about to fail, filters ready to clog H Vac on its last leg. If you wait until something breaks, you're already behind. Count on Grainger for quality products, easy reordering and 24. 7 support. Call 1-800-GRAINGER click grainger.com or just stop by Granger for the ones who get it done.
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This is Scott Becker with the Becker Business and the Becker Private Equity Podcast. Today's discussion is CO CEOs, Lululemon and Oracle. So here's the deal. Each of Oracle and Lululemon are currently run by Co CEOs. The Co CEOs at Oracle, Clay Majorek and Mike Cecilia. One of the co CEOs at Lululemon, Megan Frank so so why do I bring this up? So here's a couple of the the the points recently Oracle got crushed on Friday, still up about 9% year to date. So even though they got crushed Friday, still in the black. This year in contrast is getting crushed today and is down more than 45% year to date, almost 65% over the last year. Wool Lemon obviously rudder West. You know, it's a store that most of us at some point used to shop at. Now it's hard to go in there. It's very unexciting. The merchandising is poor. Oracle has lost a little bit of their edge again. Although Larry Ellison is clearly a genius and still serves as chair of the board, I believe he founded the company. Larry Ellison both companies co CEOs about 5% of the top 2000 companies have co CEOs. So when I looked at this and saw both them really having challenges, I thought co CEO is a bad model. And again it's a small percentage of large companies that have co CEOs. The data on this is different that cosios can work that that in in in. There was one long term study done of co CEOs and at least on average the co CEO run companies had outperformed the non co CEO run companies which was surprising me. I did not expect to see that data. But but what was fascinating is it seems to work when there's sharp clarity about one really what one leads versus one what the other leads. And typically even when there's co CEOs you typically have some sort of alpha where one is really, you know, slightly more the leader than the other. And there's some clarity about really where that power lies. In any event, I thought it was fascinating and just using these examples of Lululemon and Oracle, Lulu's getting crushed. It's been struggling for a long time time now it seems Oracle was so hot about a year ago then has gone in the wrong direction. But it's fascinating for me to watch this in the context of CO CEOs and what that means. We hope you find this interesting. Thank you for listening to the Becker Business and the Becker Private Equity Podcast. We'll be back with you again on Wednesday with a story about how great CEOs and founders evolve. The three stages of a CEO and a founder. Thank you for listening to the Becker Business and the Becker Private Equity Podcast. Thank you very, very much.
- [03:10]
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