Abstract/Summary

Abstract Purpose: Engaging a former dual CEO-chair as chairperson while appointing a new CEO retains the expertise of the incumbent and minimizes disruptions during leadership transitions. Although existing research has examined various aspects of separating the CEO and chair roles—such as power dynamics, succession patterns, and leadership during crises—significant gaps remain in understanding how organizations can effectively harness the collaborative potential of the two most senior organizational leaders while refining their distinct roles. Design: This study leverages qualitative data from an emerging market context where the statutory separation of chair and CEO roles has been implemented. We obtained rare and revelatory access to 22 in-depth interviews in total with the chair, CEO, and senior executives. Findings: The findings reveal that successful role separation requires deliberate and ongoing co-creation and negotiation of the chair and CEO roles. Mutual adaptation over time is crucial to navigating power dynamics and potential relational tensions between the two incumbents. Additionally, the effectiveness of the transition significantly hinges on establishing clear role boundaries and proactive relational management among top executives Originality: We explore how senior leaders who previously held the dual CEO-chair role collaborate with the CEO successor after mandated CEO and chair role separation. We focus on what is involved in that separation and on the transition phase, which has received limited research attention to date. Additionally, we examine the broader implications for organizational functioning, offering strategic insights for organizations globally as they adapt to the growing trend of separating the two top roles in leadership and governance.