Date of Conferral

2023

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Wen-wen Chien

Abstract

Without understanding the implications of chief executive officer (CEO) compensation packages and share price volatility (SPV), midstream oil and gas company boards of directors could make decisions that might not positively impact shareholders' wealth building. Underpinned by agency theory, the purpose of this quantitative correlational study was to examine the relationship between CEO compensation, SPV, and return on equity (ROE) in midstream oil and gas companies operating in the United States. Archival records and secondary data were collected from 64 midstream oil and gas companies operating in the United States using Security and Exchange Commission EDGAR, Standard and Poor’s 1500, NAICS, and Yahoo Finance databases. The multiple regression model results were significant, F(2, 61) = 9.162, p < 0.001, R2 =0.23. Share price volatility was the only statistically significant contributor to the model (ß = –.942, p = .001). A key recommendation for midstream oil and gas company leaders is to institute programs and policies to mitigate fluctuation in the organizations’ share prices. The implications for positive social change include the potential to increase property tax revenue used in local operations and capital projects.

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