Research: How Boards Can Increase CEO Accountability

Harvard Business Review (Feb 4, 2025) by Stevo Pavićević of Frankfurt School of Finance and Management and Thomas Keil of the University of Zurich analyses boards of 865 U.S.-listed manufacturing firms across 2010-2020 and finds that boards with directors holding military experience are more decisive in addressing CEO underperformance — including dismissal when warranted. About one quarter of sampled firms had at least one military director. The authors distil three accountability principles: clear responsibilities, transparent performance evaluations, and decisive intervention. They cite Boeing's 2024 appointment of Admiral Kirkland Donald as special adviser to its aerospace-safety committee post Alaska Airlines flight 1282 door-plug incident.