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Medicare paid the client. During the years 1986 through 1990,
Rogers attended all of petitioner's clients' Medicare preexit and
exit conferences and vigorously defended their positions.
Usually a second employee of petitioner attended the conferences
with Rogers.
E. Petitioner's Key Employees' Compensation
Petitioner awards bonuses to almost all of its employees,
both management and nonmanagement. Bonuses are based upon
contributions to petitioner's overall profit and employee
performance. For the years 1988, 1989, and 1990, petitioner paid
its key employees (other than Rogers) the following compensation
amounts:
1988 1989 1990
Employee Salary Bonus Total Salary Bonus Total Salary Bonus
Total Worley $36,838 $32,500 $69,338 $36,838 $90,000 $126,838 $36,838
$190,000 $226,838 Tankersly 10,417 2,500 12,917 50,000 57,500 107,500
50,000 165,000 215,000
Walker 36,838 23,000 59,838 36,900 46,500 83,400 35,000 50,000
85,000
Frazier 35,006 7,500 42,506 35,000 22,500 57,500 35,000 32,500
67,500
Goodwin --- --- --- 17,500 10,000 27,500 35,000 31,500
66,500
Stees --- --- --- 12,250 10,000 22,250 42,000 20,000
62,000
In 1990, Rogers determined the amounts of the bonuses.
F. Rogers' Compensation
During the years 1986 through 1990, Rogers determined how
much petitioner paid him. For those years, Rogers gave himself a
base salary, plus a bonus based on a percentage of petitioner's
pretax profit as follows:
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Last modified: May 25, 2011