Max Burton Enterprises, Inc. - Page 15

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          Brennan then attempted to justify the undercompensation by                  
          referring to Ms. Burton’s limited relevant experience and lack of           
          formal credentials.  He opined:                                             
               If Petitioner’s top financial and sales executives (who                
               worked only part-time * * *) were similarly credited                   
               with half the highest average rates for experienced                    
               full-time executives in same-size enterprises, that                    
               would create approximately $45K in undercompensation in                
               FY88, and approximately $40K in FY89.  Such amounts are                
               more than made up by granting them the highest averages                
               in FY90, when they were still part-time executives with                
               minimal objective credentials.                                         
               We agree that the executives’ limited experience and lack of           
          formal credentials could be factors to be taken into account.               
          There is, however, no evidence in the record of the experience or           
          credentials of those persons earning the salaries that the                  
          experts used for comparison, and petitioner’s business is not of            
          the character requiring formal education.  Thus perceived                   
          deficiencies in formal training of the employees should not be              
          used as a direct offset from compensation determined by the use             
          of comparables.                                                             
               Petitioner’s expert, Tracy A. Bean (Bean) of Arthur Andersen           
          LLP, did not address the limited experience and credentials of              
          the executives.  Nor did she consider the lack of complexity of             
          the business operations of petitioner.  She added $257,665 for              
          long-term incentives and $16,623 for retirement benefits to the             
          cash compensation averages of the comparable companies.  We                 
          believe that these additions are unwarranted without proof that             

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