An Empirical Study between CEO Cash Compensation and CEO Power in TSX/S&P Index Companies

This study investigates the relationship between the Chief Executive Officer (CEO) Cash Compensation and the CEO Power of the companies in the TSX/S&P index from the period 2005 to the period 2010. The totaled of the one hundred and twenty companies were selected through the stratified sampling method from the TSX/S&P index. The total sampling population was divided into three groups: the “Small”, the “Medium”, and the “Large”. The research question for this study was - Is there a positive relationship between the CEO Cash Compensation and the CEO Power? To answer this question, the sixteen statistical models were created and accordingly sixteen attestations were performed. Overall, most of the attestations results were found to have a positive relationship between the CEO Cash Compensation and the CEO Power as such, the null hypotheses were rejected. The correlation among the sub-variables of the CEO Cash Compensation - the Salary and the Bonus, and the sub-variables of the CEO Power - CEO Age; the CEO Shares Outstanding; the CEO Shares Value; the CEO Tenure; the CEO Turnover; the 5 percent Management Ownership; and the 5 percent Individuals/ Institutions, were found to be ranged from the weak negative to the weak positive ratios