Ownership Structure and CEO Compensation in North America: A Combined Study Approach of NYSE and TSX/S&P Index Companies

Abstract

This research had investigated ownership structure and its impact on CEO compensation system in TSX/S&P and NYSE indexes companies from the period 2005 to 2010. The totaled of two hundred and forty companies were selected through random sample method. The research question for this study was: is there a relationship between CEO compensation, firm size, accounting firm performance, and corporate governance, among owner-managed and management-controlled companies? To answer this question, thirty six statistical models were created. It was found that, there was a relationship between CEO compensation, firm size, accounting performance, and corporate governance, both in the owner-managed and management-controlled companies, except for the relationship between CEO bonus and firm size of owner-managed companies.

Keywords: Accounting Performance, Corporate Governance, Corporate Ownership, Accounting Earnings, TSX/S&P CEO compensation, and NYSE CEO compensation