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CEO Compensation vs Organizational Performance
Abstract
In today’s unstable economic atmosphere, where the gig economy has become the prevalent way of life, the fact that the compensation of CEOs of major Canadian companies remains noticeably high and immune to economic turmoil raises ire and condemnation. It has become the norm for CEOs to make many times more than their average employees, as much as 243 times as recently as 2021. This research will evaluate the Fairness of CEO compensation by seeking answers to the following questions: a) what set of metrics does the CEO compensation follow? b) What correlation, if any, is there between compensation metrics and performance KPI? Moreover, c) what role does culture, both regional and company, play in CEO compensation?