The relative importance of the CEO to the firm has grown noticeably over the last several years as the amount of resources allocated by firms towards CEO compensation has climbed steeply.Bebchuk et al.(2011)have argued that the fraction of the aggregate compensation of the top-five executive team captured by the CEO is reflective of and can be used as aready stand-in for the CEO’s power with in a firm.This paper investigates the relationship between CEO power and employee welfare and whether powerful CEOs utilize their power and influence to create positive employee relations.