Review of Contemporary Business Research, 2(1), pp. 20-29.
Abstract
This study investigated the relationship between CEO cash compensation, earnings per share (EPS), and cash flow per share (CFPS) of TSX/S&P and NYSE indexes companies from 2005 to 2010. The totaled of two hundred and forty companies were chosen through stratified sample method from TSX/S&P and NYSE indexes. The research question for this study was: among TSX/S&P and NYSE indexes companies, is there a relationship between CEO cash compensation, earnings per share (EPS), and cash flow per share (CFPS)?. To answer this question, sixteen statistical models were created. Overall, all the test results were found to have a relationship between CEO cash compensation, earnings per share (EPS), and cash flow per share (CFPS). The correlations between CEO salary, bonus, and earnings per share (EPS), and cash flow per share (CFPS) were found to have weak mixed ratios. Similarly, group firm sized effect on the relationships between CEO cash compensation, earnings per share (EPS), and cash flow per share (CFPS) were also found to have weak mixed ratios among TSX/S&P and NYSE companies.
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Nulla, Mohammed Dr. Yusuf. (2013). The Effect of Earnings Per Share and Cash Flow Per Share on CEO Cash Compensation: An Empirical Study of TSX/S&P And NYSE Indexes Companies. Review of Contemporary Business Research, 2(1), pp. 20-29.
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Dr. Yusuf Mohammed Nulla currently associated with Ile a la Crosse School Board Division as Chief Financial Officer, and provide consulting on management and strategic projects. Have completed D.Phil. & Ph.D. with UGSM-Monarch Business School Switzerland and Univerisdad Azteca Mexico in 2013. Have obtained MSc (strategic management) in 2010 and MBA (business administration) from Heriot-Watt University, UK in 2007. My areas of expertise are in accounting and strategic management. Have over six years of college education experience in teaching and tutoring, financial and management accounting, and computerized accounting software courses. Have written twenty articles in the area of CEO compensation, firm performance, firm size, and corporate governance. In addition, have written a chapter for the book entitled “Theory and Practice of Directors’ Remuneration: New Fundamentals and Challenges”. Currently doing a research in the area of: i) the impact of International Financial Reporting Standards (IFRS) on Canadian public companies; and ii) corporate social responsibility and financial performance. My future research areas are: i) firm’s strategy and performance; ii) corporate strategy and CEO compensation; and iii) Chinese public company corporate strategic trends and performance.
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