Cooperatives are democratic organizations with some core principles guiding their functioning. We argue that larger and more complex co-ops risk experiencing ‘elite capture’ in governance. This induces self-interested behaviors on the part of such directors rather than working in the interest of members. Consequently, ‘value congruence’ likely diminishes with adverse performance consequences. Where CEOs adopt stewardship roles, with their expertise and relationship building skills, they can forge value congruence and enhance co-op performance. This paper encourages research exploring the mitigation of elite capture and the nuances of board of directors and CEO interactions in the context of cooperatives.
