A Combined Study of Canada's Top CEO Compensation Sectors - Energy, Metal, & Mining - An Empirical Study

Abstract

This study investigated CEO compensation system of Canada’s top CEO compensation sectors, energy, metal, and mining. It tested the relationship between CEO cash compensation, firm size, accounting firm performance, and corporate governance in TSX/S&P index companies from 2005 to 2010. The totaled of fifty one Canadian energy, metal, and mining companies were selected through random sample method from TSX/S&P index companies list. The research question for this study was - is there a relationship between CEO cash compensation, firm size, accounting performance, and corporate governance in energy, metal, and mining industries? To answer this question, nine statistical models were created. It was found that there was a relationship between CEO salary, CEO bonus, total compensation, firm size, accounting performance, and corporate governance in energy, metal, and mining. The correlations between CEO cash salary, firm size, and accounting performance were good to strong positive ratios; the correlation between CEO salary and corporate governance had weak mixed ratios; the correlations between CEO bonus, total compensation, and firm size had strong positive ratios; the correlations between CEO bonus, total compensation, firm performance, and corporate governance were ranged from weak negative to strong positive ratios.

Keywords: CEO Compensation, Accounting Performance, Firm Size, Corporate Governance, CEO Power, Energy and Mining Compensation, and CEO Bonus