The relative importance of the CEO to the firm has grown noticeably over the last several yearsastheamountofresourcesallocatedbyfirmstowardsCEOcompensationhasclimbed steeply.Bebchuketal.(2011)havearguedthatthefractionoftheaggregatecompensationof thetop-fiveexecutiveteamcapturedbytheCEOis reflectiveofandcanbeusedasaready stand-infortheCEO’spowerwithinafirm.Thispaperinvestigatestherelationshipbetween CEO power and employee welfare and whether powerful CEOs utilize their power and influence to create positive employee relations.