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We disagree with the various contentions of both parties.
However, we believe that petitioner's positions regarding the
fiscal years for which it paid the compensation accrued under the
1987 deferred compensation arrangement and for which it paid the
compensation during its fiscal year ended February 28, 1990, are
more consistent with the record herein than are respondent's
positions concerning those matters.
Specifically, based on our examination of the entire record
before us, we find that petitioner awarded most of the $933,333
it paid to Mr. Ruf pursuant to the 1987 deferred compensation
arrangement as compensation for services he performed during its
fiscal year ended February 28, 1987, and the balance of that
amount as compensation for services he provided during its fiscal
years ended February 29, 1988, and February 28, 1989. The 1987
deferred compensation arrangement provided in pertinent part that
Mr. Ruf "has been required and continues to be required to render
services substantially in excess of those which would ordinarily
be required" and "has, in his capacity as president and chief
operating officer, provided extraordinary leadership and ability
as evidenced by the Corporation's [petitioner's] current operat-
ing profits and steadily improving financial position". That
petitioner awarded substantial additional compensation to Mr. Ruf
for services he provided during its fiscal year ended February
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