Abstract

This research study investigated the effect of CEO age on CEO compensation using accounting performance as an independent variable or benchmark on TSX/S&P companies from 2005 to 2010. The quantitative research and stratified sample methods were selected for this research. The research question for this study was: is there a relationship between CEO compensation and CEO age using accounting performance as a benchmark. It was found that there was a relationship between CEO salary, CEO bonus, CEO total compensation, CEO age, and accounting performance among all CEO age groups. The correlations between CEO salary, CEO bonus, CEO total compensation, CEO age, return on assets, return on equity, earnings per share, cash flow per share, net profit margin, common stocks outstanding, book and market values of common stocks outstanding were ranged from moderate negative to strong positive ratios.

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