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case is appealable, has divided these factors into five
categories: (1) The employee's role in the company; (2) an
external comparison of the employee's salary with salaries paid
by similar companies for similar services; (3) the character and
condition of the company; (4) the conflict of interest between
the company and the employee; and (5) the internal consistency in
the company's treatment of payments to employees. Elliotts, Inc.
v. Commissioner, supra at 1245-1248.
A. Role in the Company
The first category of factors identified by the Court of
Appeals concerns the employee's role in the company. Relevant
factors include the employee's qualifications, position and
duties, hours worked, and the general importance of the employee
to the success of the company. Elliotts, Inc. v. Commissioner,
supra at 1245; American Foundry v. Commissioner, 536 F.2d 289,
291-292 (9th Cir. 1976), affg. in part and revg. in part 59 T.C.
231 (1972). An employee's superior qualifications and
substantial contribution to the employer's extraordinary success
may justify a high level of compensation. Home Interiors &
Gifts, Inc. v. Commissioner, 73 T.C. 1142, 1146 (1980).
Petitioner maintains that Kleindienst is the primary reason for
petitioner's success while respondent contends that, although she
had the skill and experience to successfully manage petitioner,
neither her academic achievements nor experience was
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