Guy Schoenecker, Inc., Business Incentives, Inc., and Carousel By Guy, Inc. - Page 31

                                                 - 31 -                                                    

            on the statistics from the advertising field, is of little value.                              
            If any consideration were warranted of the salaries paid by                                    
            advertising agencies, the payments by Grey Advertising, Inc.,                                  
            Interpublic Group of Companies, and the Omnicom Group, one of                                  
            which had revenues of about three times that of BI, another of                                 
            which had revenues of almost 10 times BI's, and the third about                                
            six times BI's revenues would have to be eliminated.  The                                      
            salaries paid to CEO's by the other advertising firms as shown in                              
            the proxies ranged from $250,000 to $715,000.  None approached                                 
            the salary including bonuses paid to Mr. Schoenecker by BI for                                 
            any year here in issue.                                                                        
                 The clear indication from the testimony of Mr. Locke is that                              
            he was aware of salaries paid by BI's direct competitors, Maritz                               
            and MacDonald, but would not disclose them.                                                    
                 Respondent's expert, Mr. Brennan, used the ECS statistics                                 
            along with other information in his reports.  Mr. Brennan's                                    
            report was received in evidence as his opinion, and petitioners'                               
            counsel did not cross-examine him on the report.                                               
                 Petitioner argues that the business services and wholesale                                
            trade from the ECS statistics primarily relied on by Mr. Brennan                               
            are not comparable to BI: (1) Because the area of business                                     
            services and wholesale trade are not comparable to petitioner's                                
            business, and (2) because the officers in these companies may                                  
            have received pensions and other benefits that Mr. Schoenecker                                 
            did not get.  It is reasonably clear that the compensation in the                              



Page:  Previous  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  Next

Last modified: May 25, 2011