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    Home - Business & Entrepreneurship - Research: How Boards Can Increase CEO Accountability
    Business & Entrepreneurship

    Research: How Boards Can Increase CEO Accountability

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    Research: How Boards Can Increase CEO Accountability
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    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. Boards with directors who have military experience, they found, are more decisive in addressing CEO underperformance, often opting to dismiss the CEO when necessary. In this article, they discuss three key accountability principles that these directors have brought with them from the military — and explain how any board can make use of these principles in overseeing their company’s CEO.



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