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was reasonably comparable to petitioner. The largest company had
sales for 1990 of $191 million and a pretax profit of $26
million, and employed a total of 1,884 employees. The next
largest company had sales for 1990 of $65 million and a pretax
profit of $3 million, and employed a total of 450 employees.
Respondent argues that Mr. Martin's reasonable compensation
cannot exceed the cash compensation received by these two chief
executive officers of much larger printing companies.
However, as petitioner points out, Clausen failed to take
into account the stock options the chief executive officers of
the two larger printing companies previously were granted. The
compensation they earned from these stock options appears to have
been substantial. In any event, the two larger printing
companies Clausen chose are not reasonably comparable to
petitioner. Moreover, as Clausen acknowledged, the two industry
surveys he consulted are of only limited use in determining Mr.
Martin's reasonable compensation. Accordingly, the Court does
not accept Clausen's opinion concerning Mr. Martin's reasonable
compensation for the 1990 fiscal year.
C. Character and Condition of Company
This third factor considers the company's character and
condition. Relevant considerations are the company's size as
measured by its sales, net income, or capital value; the
complexities of the business; and general economic conditions.
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