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.Bebchuketal.(2011)have argued that the fraction of the aggregate compensation of the top-five executive team captured by the CEOis reflective of and can be use dasaready stand-infortheCEO’spowerwithinafirm.Thispaperinvestigatestherelationshipbetween CEO power and employee welfare and whether powerful CEOs utilize their power and influence to create positive employee relations.