- -25 to the direct terms of the bonus plan. The bonus plan provided that the officers were to be paid a bonus equal to 10 percent of the gross increase in sales of petitioner for the fiscal year 1990 over its gross sales for its fiscal year 1989. Under the bonus plan, the total bonuses paid to all officers from the bonus pool would have been $1,068,858. The bonus plan clearly provided that the bonuses were to be paid in an amount equal to the ratio of an officer's annual compensation to that of all officers applied to the gross bonus pool. The record is unclear as to the amount the Penalbas received in base salary for petitioner's fiscal year 1990. However, the evidence indicates that the Penalbas' base salaries were approximately equal if not identical. Mrs. Penalba testified that her salary, which was the same as Mr. Penalba's for the year here in issue, was approximately $125,000. Mr. Blumberg implied that the Penalbas' base compensation in petitioner's fiscal year 1990 was $682,000. Since under the bonus plan Mr. and Mrs. Penalba were to have been paid in the same proportion as their base salary, we conclude that the bonuses paid for the year at issue were not paid pursuant to a structured, formal, and consistently applied program. Also, the total amount of the bonuses appears to have been improperly computed. Respondent contends that neither Mr. nor Mrs. Penalba needed an incentive to work harder since they owned the business. Both Mr. and Mrs. Penalba testified that they gave their full effortsPage: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
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