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ECS reports included all cash compensation paid to the CEO's. If
some fringe benefits or contributions to a retirement plan were
cash payments, this amount was included. Mr. Schoenecker had
some fringe benefits. BI had a section 401(k) plan in which Mr.
Schoenecker was entitled to participate, and Mr. Schoenecker had
his life insurance premiums paid for him by BI, and a portion of
his medical insurance premiums, just as other BI employees.
However, we do agree with petitioner that while the
categories of business services and wholesale trade might include
the type of business engaged in by petitioner, they are far too
broad to be representative of petitioner's business.
While Mr. Brennan did not know the exact amount of the salary
of the CEO of petitioner's main competitor, Maritz, he did have
information from the company that it was less than the maximum
range of companies its size in the ECS survey. Maritz was a much
larger company than BI.
As petitioner points out, there is no way of knowing from the
record the reason the CEO of Maritz had the salary he had without
knowing more facts about how the salary was determined than this
record shows. However, that is true of any determination based
on statistics. The burden here is on petitioner to show error in
respondent's determination. Petitioner has produced little
evidence to show what a reasonable salary would be for Mr.
Schoenecker in the years here in issue.
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