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The flag was taken from the insignia created in 1966 to distinguish the SMA rank.

The flag of the Sergeant Major of the Army incorporates a silver five-pointed star surmounted by the Coat of Arms of the United States between two white five-pointed stars at the top and two red five-pointed stars at bottom.

The historical rank of Sergeant Major General (which eventually became the current rank of Major General) was a 2 star position. Also - the standard insignia for a sergeant major (E-9) is three chevrons above three arcs with a (single) five pointed star between the chevrons and arcs. Sergeant Major of the Army (who is the senior representative of all enlisted soldiers) is also an E-9 but gets his own special insignia - with two stars. Originally it was just the two stars but in 1994 the insignia for Sergeant Major of the Army was changed to add the Coat of Arms of the United States between the two stars in the center of the insignia. There are thus two precedents for the use of a pair of stars for the Sergeant Major of the Army.

Note that the Office of the Chief of Staff, United States Army and Office of the Vice Chief of Staff, United States Army also use star pairs on their Positional colors. Both of these have the insignia of the General Staff, a five-pointed white star, surmounted by the Coat of Arms of the United States.

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Q: What do the stars on the Sergeant Major of the Army Flag represent?
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