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compare the executive compensation provided by other companies
they selected to the situation presented in the instant case.
Consequently, we give petitioner's experts' above opinions little
weight.
Respondent's expert Clausen examined other companies in the
printing industry. Clausen selected three public companies to
compare to petitioner. Two of these companies were much larger
than petitioner, particularly in terms of their respective 1990
annual sales and number of employees. The third company (whose
1990 annual sales were somewhat closer to petitioner's) was far
less profitable than petitioner, and was acknowledged by Clausen
as not being reasonably comparable to petitioner. In determining
Mr. Martin's reasonable compensation, Clausen further considered
two 1990 surveys of executive compensation in the printing
industry. However, he acknowledged these surveys to be only of
limited use in determining what might be reasonable compensation
in a particular company's case.
Clausen opined that reasonable compensation to Mr. Martin
for the 1990 fiscal year would be $230,000, consisting of a
$120,000 salary and a $110,000 bonus. He noted that Mr. Martin's
$878,913 in salary and bonus exceeded the 1990 total cash
compensation of each chief executive officer of the two large
public printing companies he examined.
None of the three public printing companies Clausen selected
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