- 8 -8
One crucial role that Ferguson filled was keeping
petitioner's super salesmen together. These were petitioner's
top performing salesmen, and they were extremely valuable
employees. Ferguson personally supervised 10 of petitioner's top
performers. The top performers could call Ferguson with a
problem any time, 7 days a week. Ferguson, in his capacity as
sales manager, received a commission on the sales generated by
the 10 salesmen that he supervised.
6. Ferguson's Compensation
Petitioner's management team set salaries and bonuses after
consulting with Louis Paul Kassouf (Kassouf). Kassouf has been a
certified public accountant since 1954, and he served as
petitioner's accountant from 1970 through the years in issue.
Kassouf consulted with petitioner on audit issues, corporate tax
planning, compensation, and tax return preparation.
When Ferguson took over as petitioner's president after
Bell's death, initially his salary was 2.6 percent of net sales.
Ferguson then entered into the employment agreement with
petitioner which set Ferguson's salary at 2.4 percent of net
sales. Kassouf had recommended a salary for Ferguson in excess
of 2.4 percent of net sales. Kassouf reasoned that Ferguson, in
addition to his existing duties, would be adding the duties
previously handled by Bell. However, Ferguson did not perform
all of the duties previously handled by Bell.
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Last modified: May 25, 2011