CEOs with Military Experience Outperform Those Without

Our analysis shows that service in the military affects executive decisions and corporate policies and outcomes. More precisely, we find that CEOs who serve in the military tend to invest less, have lower expenditures on research and development, and their firms seem to perform better in times of industry distress.

To the extent that growth of firms through excessive investment can be inefficient, our results provide suggestive evidence that the shift away from military service to business MBA programs can pose an important challenge to corporations


Consider this when hiring a future employee or when applying to work for a company.

My worst boss was an Navy nuc, sorry to say.

Right out of college, 2005 I got a job with a conveyor company. The CEO's (2 guys) had recently held high positions in another conveyor company, but sold their shares and started their own operation in in 2001.
I left that company in 2009.
in 2010 the company I left bought the company they used to work for (the one they left in 2001 to go do it their way. In 10 years they had built a $200M+ (sales per year) company.

It was a great company to work for- good people, good benefits, I'd regret leaving if it wasnt a travelling position.

One of those CEO's was an Ex-Marine - consider this andecodtal evidence in support of the linked article.

-John

__________________
2009 Kia Sedona
2009 Honda Odyssey EX-L
12006 Jetta Pumpe Duse
(insert Mercedes here)

Husband, Father, sometimes friend =)

There was a very large company in the Dallas area that had a policy of only hiring management with Military experience. If you were not at least a Captain then you did not need to apply.

Over a few years things started going downhill. Quality dropped off, turnover increased, costs went up..... So they started looking for the problem. They even hired a private investigation firm to put employees on the floor so they could get some first hand information about working there.

It turns out that the ER person in charge of finding managers was not really doing their job. If you had military experience that was enough for them, and if you were otherwise unqualified for the position then they just fell back on the 'meets requirements' thing.

So they continued to hire ex-military offices, but they made sure they did not hire the ones that were Jerks. Everything smoothed out.

I hope it is not a surprise to anyone, but the military personnel system weeds people out at certain leve;ls.
On the enlisted side: E-5, E-7, E-8 for various levels of skill and thinking capability.
Ditto with the officer and warrant officer corps:

Many captains never make major, many majors never make lieutenant colonel, many LTCs NEVER make O-6 bird colonel.

It's for a reason: they are not up to the task.

Many warrants never make CW3 for that reason.
CW5 is a different story: some senior CW4s don't participate for CW5, because it means leaving the technical specialty you have done all your life to become a full-time paper-stamper for very little money and less respect.

__________________
Strelnik
Invest in America: Buy a Congressman!

1950 170SD
1951 Citroen 11BN
1953 Citroen 11BNF limo
1953 220a project
1959 180D
1960 190D
1960 Borgward Isabella TS 2dr
1983 240D daily driver
1983 380SL
1990 350SDL daily driver alt
3 x Citroen DS21M, down from 5
3 x Citroen 2CV, down from 6

MY BIL was kicked out of the Navy after 20 years because he couldn't get past E-6.

__________________
For the Saved, this world is the worst it will ever get.
For the unSaved, this world is the best it will ever get.

Clk's Ebay Stuff BUY SOMETHING NOW!!!

My attorney is a LT Colonial, but he is in the reserves now, can they make you 0-6 in the reserves?

__________________
2016 Corvette Stingray 2LT
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Of course! As long as there is a slot and as long as he has the right skill set. If he did NOT make Colonel, it doesn't mean he's incompetent. There are different jobs in the military just like in the civilian world. If there were an open slot for a JAG Colonel and he has no experience in JAG, then how could he be considered.

__________________
2001 SLK 320 six speed manual
2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

This is all absolutely true, but could be misleading to some.

Yes, if a perrson in the military is passed over for promotion too many times, ESPECIALLY if commissioned, they will be out. That said, this does NOT mean that in all cases that someone is passed over, does it mean that they are incompetent.

In the military, there are different jobs, just like in civilian life. People have to have the correct skill set for the job they are filling. Some job specialties are more competitive than others.

Example, a pilot! There are a limited number of slots for pilots and there is no shortage of people who want to filll those slots. A fellow I worked with, flew several different fighters in Vietnam with success. He was a mild mannered guy, at least for a fighter jock. He was not really the competitive type. He was bounced out after being passed over for Major a few times.


As far as military people being successful on the outside, there are lots of things learned and experience gained in the military that transfer very well to the outside.

There aren't very many places to work as a very young person, where you can gain such a high level of responsibilty at a young age. Having experience while at the same time having LOTS of responsibility, will temper a persons work performance and work ethic pretty quickly.


Maybe it's coincidental, but my very best bosses, who also were the ones I connected with have ALL been ex military. Maybe part of the reason for this is that I am also ex Military and this helped me to connect with them.

__________________
2001 SLK 320 six speed manual
2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution