PMT, INC. - Page 17

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          financial executive should be used to compare with Mrs. Penalba's           
          salary.  Mr. Brennan described the CEO as "the highest paid                 
          position found among survey data", while the top financial                  
          executive was the officer "responsible for the organization's               
          overall financial plans and policies, along with its accounting             
          activities and the conduct of its relationship with lending                 
          institutions, shareholders, and the financial community".                   
               Mr. Brennan's calculations were based primarily on data from           
          the Executive Compensation Service (ECS).  Mr. Brennan's report             
          stated that the total compensation figures were based on the                
          highest amounts from the non-manufacturing and wholesale                    
          categories, and included both salary and bonus amounts.  If the             
          survey for non-manufacturing companies yielded a higher pay                 
          amount than the survey for the wholesale industry, Mr. Brennan              
          used the higher number.  Mr. Brennan determined what the average            
          compensation for each job was from the ECS survey and then took             
          two standard deviations to arrive at his highest maximum amounts.           
               We find no evidence that Mr. Brennan's conclusions are based           
          on companies comparable to petitioner.  Mr. Brennan's figures,              
          taken from ECS statistics, are based on broad, general categories           
          of industries, and not on businesses that are similar to the                
          business of petitioner in this case.  Mr. Brennan based his                 
          calculations on the wholesale industry and used the ECS                     
          statistics for companies with a Standard Industrial                         
          Classification (SIC) code for a trader in "nondurables, apparel,            




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