USAA recently announced a new CEO, Juan Andrade, replacing Wayne Peacock, who is set to retire this year.
Here’s part of the announcement:
"Juan is a member of the association and has served on USAA’s Board of Directors for four years, including on key committees focused on members, risk, financials, and technology. He was Vice Chairman of USAA’s Advisory Panel, a forum established for board directors and employees to interact with members and learn how we can serve you better. This has given him a front-row seat to who and how we serve. He understands the unique needs of military families and, coupled with his nearly 40 years of leadership experience as a public servant and in the financial services industry, is well suited to ensure you continue to receive the exceptional service you expect and deserve from USAA.
He joins us from Everest Group, Ltd., a global insurance and reinsurance company, where he was president and CEO since January 2020. Prior to Everest, Juan was president of Chubb’s international business in over 50 countries, president and chief operating officer at The Hartford, and a general manager at Progressive. Earlier in his career, he worked in national security, international affairs, and drug policy within the U.S. Federal Government’s Executive Branch and The Executive Office of the President. He held roles in various areas, including the Office of the Secretary of Defense, the Drug Enforcement Administration, and the White House Office of National Drug Control Policy. Juan was awarded the Secretary of Defense Medal for Meritorious Civilian Service, the second-highest honor for civilian employees, for his work countering international drug trafficking."
Despite Andrade’s extensive experience in leadership and insurance, there’s no mention of military service in his background.
Discussion:
Why isn’t military service a requirement for a CEO at a company like USAA that prides itself on serving the military community? Wouldn’t a military veteran be more attuned to the needs of the membership and the organization’s core mission?
Wayne and Juan were on CNBC this morning, and I wasn’t impressed. They dodged specifics about financial impacts from recent fires and challenges in the California insurance market.
Tyler said:
Wayne and Juan were on CNBC this morning, and I wasn’t impressed. They dodged specifics about financial impacts from recent fires and challenges in the California insurance market.
It’s not surprising they didn’t dive into specifics. This was likely meant to introduce the new CEO, not discuss California’s insurance challenges, which are widely known.
Being a veteran doesn’t automatically make someone qualified to run a Fortune 100 company. What matters is their ability to lead, improve customer service, and ensure competitive rates for members. Andrade’s track record in global insurance is impressive and may benefit USAA.
@Asa
I understand your point, but veterans often have firsthand experience with military life, which could help align decisions with the organization’s core mission. Wouldn’t a veteran bring unique insight into serving this community?
@Juneta
Insight is valuable, but so is expertise in leading a large, complex organization. As long as the CEO listens to the Board (which includes veterans) and delivers results, their military background may be less critical than their business acumen.
It’s disappointing they didn’t select a retired senior military officer. A veteran CEO could better represent the values and sacrifices of USAA’s core membership. This feels like a missed opportunity to reconnect with their roots.
Keep in mind, USAA’s Board of Directors is filled with military retirees and veterans. The CEO’s job is to lead the company, and with input from the Board, ensure the mission stays intact. Military experience isn’t a necessity for that role.
The new CEO will send a nice Veterans Day email, but don’t expect much beyond that. It’s about maximizing profits, raising rates, and ensuring bonuses for the top brass.
With a Board of Directors full of military experience, does it really matter if the CEO isn’t a veteran? The Board guides strategy and ensures the mission remains true to military families.