This article explores how military-experienced directors can enhance CEO accountability on corporate boards. Based on an analysis of 865 US-listed manufacturing firms, the authors found that boards with military veterans are more decisive in addressing CEO underperformance. They identify three key accountability principles from the military and explain how any board can implement them to effectively oversee their CEO.
CEOs are seldom dismissed when the company they lead underperforms, in part because they wield considerable power over the board. So how can boards more effectively enforce CEO accountability in the face of poor performance? The authors recently analyzed boards of 865 U.S.-listed manufacturing firms between 2010 and 2020 and identified an often-overlooked source of accountability principles: the military.
Stevo Pavićević is an associate professor of strategy at the Frankfurt School of Finance and Management. His work has been published in top strategy and management journals, among them theis a professor and the chair in international management at the University of Zurich, Switzerland. He is a partner at the Next Advisors and the coauthor, with Marianna Zangrillo, of
CEO Accountability Board Governance Military Experience Corporate Performance Leadership
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Research: How Boards Can Increase CEO AccountabilityCEOs are seldom dismissed when the company they lead underperforms, in part because they wield considerable power over the board. So how can boards more effectively enforce CEO accountability in the face of poor performance? The authors recently analyzed boards of 865 U.S.
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