Executives at poorly performing companies are more likely to get the boot if one of the company’s board members has a military background, The Wall Street Journal reports.
The odds of being removed from office rise if multiple board members are former military, according to a recently published study that analyzed nearly 900 American publicly listed companies between 2010 and 2020. A little more than one-quarter of the companies in the sample had a board member that served in either the U.S. Army, Navy, Marine Corps, Air Force, National Guard or a foreign equivalent.
The researchers measured company performance by looking at return on assets, a metric often used to determine how efficiently organizations are using their assets to generate profits.
