A study of the relationship between organizational performance and executive compensation

This academic effort studies the relationship between the level of organizational performance and the level of senior executive compensation through the application of statistical correlational research methodologies. The formulated hypothesis studied in this study is that the level of organizational performance will increase as the level of executive compensation increases. The null hypothesis is that the level of senior executive compensation has no statistical relationship to organizational performance. For the purpose of this study senior executives are defined as the Chief Executive Officer (CEO), and the organization's top four highly compensated executives as defined by Security Exchange Commission regulations.