- 38 -
addition, we found his analyses to be flawed in certain respects.
By way of illustration, like Mr. Brennan, Dr. Vinso used statis-
tical analyses of the ratios of officer compensation to sales
based on survey data to compute the amount of compensation to
which Mr. Ruf was entitled. Rather than utilizing the ECS survey
data on which Mr. Brennan relied, Dr. Vinso relied on survey data
collected by Robert Morris Associates (RMA). As was true of the
ECS survey data Mr. Brennan used, the RMA survey data Dr. Vinso
used appears to have been obtained from companies that were not
comparable to petitioner. At trial, Dr. Vinso admitted that,
because no information was provided in the RMA survey data for
the asset range that included petitioner (i.e., $10 million to
$50 million), he used the ratios that were derived from companies
with assets ranging from $1 million to $10 million.23
In summary, we have not found the analyses performed or the
opinions expressed by any of the experts upon whom the parties
rely to be persuasive or reliable. We are unwilling to accept
their respective opinions regarding Mr. Ruf's compensation during
the years at issue.
Character and Condition of the Company
The third category of factors identified by the Court of
23 We also note that some of the criticisms that Dr. Barren
expressed during his testimony concerning Mr. Brennan's use of
survey data to calculate reasonable compensation apply equally to
Dr. Vinso's use of survey data for that purpose.
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