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each employee's skill and experience and, particularly due to the
fierce competition in petitioner's industry, what the Officers
believed it would take to hire and retain the employee.
Petitioner's compensation package differed depending upon whether
the employee was a member of petitioner's sales and purchasing
staff or its administrative or support staff. Petitioner, unlike
Components, did not have a pension plan. The only benefits that
petitioner provided to its employees were paid vacations and,
beginning in the year in issue, medical insurance.
Petitioner's sales and purchasing staff received a base
salary plus commissions for sales greater than monthly sales
quotas. They did not receive any other bonuses. Their
commissions ranged from 2 to 15 percent, and the average
commission was 10 percent of the gross profits from the
transactions consummated by the employee. Commissions were the
bulk of the annual compensation received by sales or purchasing
agents.5 During the 1984 and 1985 calendar years, petitioner
paid its sales and purchasing employees the following amounts:
5 Consequently, such employees' annual compensation varied
greatly depending on the economic conditions in petitioner's
industry. In periods of high profitability, many of petitioner's
sales personnel were highly compensated, earning in excess of
$100,000. In more fallow periods, petitioner's sales personnel
earned only a fraction of that amount.
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