This is according to a survey done by Korn/Ferry International, released on Monday, which said the appointment of former US Marine John Vitalo to head up Absa's investment bank is proof thereof.

René van Wyk, partner in charge of Financial Services Practice at executive recruitment firm Leaders Unlimited Korn/Ferry International, said skilled military leaders have long been in demand in the United States and Europe.

Some SA examples

Vitalo and Roy Andersen, former CEO of Liberty Group and now chairperson of Sanlam, are two examples of senior executives in South Africa with military experience.

"The latest study from our alliance partner Korn/Ferry International — that military experience translates into good corporate management — shows conclusively that companies led by CEOs with military experience have outperformed the S&P 500 index over the past three, five and ten-year periods by as much as 20 percentage points," Van Wyk said.

Published by Korn/Ferry in cooperation with the Economist Intelligence Unit, "Military Experience & CEOs: Is There a Link?" also found that CEOs with military experience tend to last longer in the job.

CEOs with military experience have an average tenure of 7.2 years, while CEOs without military experience have an average tenure of 4.6 years, the study found

Attractive military attributes

The study noted that the 59 companies on the S&P 500 headed by CEOs with military experience provided an average annual shareholder return of 21.3 percent over the three-year period ending September 2005, versus 11.0 percent for the S&P 500 index during the same time.

For a five-year period, the ex-military CEOs provided a 9.5 percent return while the index provided a return of minus 10.7 percent, and for a ten-year period, the ex- military CEOs provided a 12.2 percent return versus a 9.4 percent return for the S&P 500 index.

"There are a number of attributes of military training that makes former officers desirable: the fact that they lead from the front, the fact that they accept responsibility for their actions and the fact that they are accustomed to the delegation of tasks to their support staff."

The study suggests that deft management of stressful situations during real-world military operations may well enhance performance in a corporate environment.

"There are clearly certain traits CEOs possess that drive their approaches to leadership, communication and, perhaps most importantly, the ability to translate company vision into tangible results," said Van Wyk.

"While we don't necessarily believe that one must obtain military experience to become a successful CEO later in life, it is evident that the leadership skills acquired during military training can absolutely enhance one's chances for success in corporate life."

I-Net Bridge

The Competition Commission has referred its findings of price fixing against 28 bicycle wholesalers and retailers to the Tribunal for adjudication.

The firms face the allegation that they colluded to set the wholesale and retail prices of cycles and accessories. In addition, they are alleged to have excluded competitors from the market.

Wholesalers sent retailers a price list with the wholesale price and the recommended retail price on a regular basis. The recommended retail price includes a mark-up of 35 percent for bicycles and 50 percent for accessories. In turn, the ceiling on mark-ups also determined the profit/margin that retailers could make on cycles and accessories.

Bicycle retailers colluded to exclude competitors like internet retailers from the market. The stratagem employed was to ask the wholesaler to sell to independent retailers at a higher price. The Competition Commission believes this conduct is likely to harm competitors and consumers.

The Commission has asked the Tribunal to levy an administrative penalty of 10 percent on the annual turnover of each of the firms involved.

The firms facing these allegations include retailers Fritz Pienaar Cycles, Cycle Lab, Hotspot Cycles, Maverick Cycles, Dunkeld Cycles, Summit Cycles, Bester Cycles, Johnson Cycle Works, Salojee's Cycles, West Rand Cycles, Bowman Cycles, Winners Cycles.

Will you purchase a bicycle or parts from the retailers allegedly involved in price-fixing? Vote in our poll