- -26 to the business, and that they did not need an incentive plan to perform well. Mr. Penalba testified that he assisted in development of the plan and thought that it was adequate to maintain the performance of the company. Mr. Penalba did not know how it was calculated, nor did he know the specifics of the plan. Based on the record in this case, it is clear that the plan was not the major incentive for the work output of either Mr. or Mrs. Penalba during the year at issue. It is also clear from the record that petitioner paid its other employees at least on par with, if not slightly better than, other companies in the industry. Mr. Rubino, the production manager for petitioner during the year at issue, and a salesman for petitioner at the time of trial, and the only employee of petitioner other than the Penalbas to testify in this case, received a salary of $58,175, along with a company car, certain other bonuses, and health care for his family. Mr. Rubino testified that he was better paid than others at the same level in the industry. The record also indicates that petitioner paid its salesmen, who served as either independent contractors or employees, well, during the year at issue. The only evidence as to the compensation of the other employees of petitioner is their respective salaries. Petitioner did not provide a pension plan for its employees during the year at issue, but the evidence indicates that it was other employees of petitioner and not thePage: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Next
Last modified: May 25, 2011