Labelgraphics, Inc. - Page 25

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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           
               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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