Max Burton Enterprises, Inc. - Page 17

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               Mr. Burton’s compensation should take into account Brennan’s           
          “highest average” ($73,540) and Bean’s median ($68,741) for chief           
          financial officers as well as the undercompensation acknowledged            
          by Brennan for 2 years.  Denovan’s compensation should take into            
          account Brennan’s “highest average” ($89,430) and Bean’s median             
          ($81,937) for top sales executives and undercompensation                    
          acknowledged by Brennan for 2 years.  Petitioner has not                    
          persuaded us that the undercompensation levels exceeded those               
          acknowledged by Brennan and thus has failed to meet its burden of           
          proving greater entitlements.                                               
               Using our best judgment on the entire record, we conclude              
          that, for the fiscal year ended June 30, 1990, reasonable                   
          compensation, including compensation for earlier years, is                  
          $525,000 for Ms. Burton and $160,000 for Mr. Burton.  The amount            
          determined in the same manner for Denovan would exceed the amount           
          paid to him during that year, and petitioner’s deduction is                 
          limited to the amount actually paid.  To take account of these              
          conclusions,                                                                
                                                  Decision will be entered            
                                             under Rule 155.                          












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