- 11 -
Mr. and Mrs. Walker's Lifestyle
From the early 1970's through 1981, Mr. and Mrs. Walker and their
family lived very well. Following West Jersey's incorporation in 1970,
Mr. Walker began to earn substantially more income than he had earned
in prior years.
During the early 1970's, Mr. Walker received an annual salary of
$200,000 from West Jersey. Prior to 1970, Mr. Walker had been employed
as a salesman at two steel companies. From 1963 through about 1968,
Mr. Walker worked at Bethlehem Steel. After 1968, he then worked for
about a year and a half as a salesman at Philadelphia Steel & Iron.
However, beginning in about 1974, Mr. Walker's annual salary from
West Jersey was reduced significantly, from $200,000 to $130,000, as
the result of an IRS examination that concluded that the prior annual
salary of $200,000 was not reasonable compensation. With respect to
the $200,000 annual salary received during one or more of the years
prior to 1974, the IRS required Mr. Walker to treat salary in excess
of $130,000 as constructive dividend income. During 1978 through 1981,
Mr. Walker received annual compensation from West Jersey as follows:
Year Compensation
1978 $130,000.00
1979 130,000.00
1980 145,937.50
1981 144,950.00
In 1969, Mr. and Mrs. Walker purchased for $72,000 a fivebedroom
home located in an affluent neighborhood in Cherry Hill,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011