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Leonard was undercompensated during prior years; (2) Mr. Leonard
received no prior reward for his personal efforts in obtaining the
All American Pipeline contract; and (3) Mr. Leonard received no
prior reward for development of the new insulation process.
Both petitioner's and respondent's experts agreed that Mr.
Leonard was undercompensated in 1985 and 1986. Yet, despite that
conclusion, respondent's expert, Mr. Brennan, made no adjustments
to Mr. Leonard's 1987 base salary figure. Rather, Mr. Brennan
opined that Mr. Leonard was entitled to $160,710 in 1987, even
though he received only $162,252 in 1985 and $142,748 in 1986 from
joint ventures involving petitioner. Thus, Mr. Brennan's 1987
figure failed to reflect the fact that Mr. Leonard was entitled to
a greater base salary.
Petitioner's expert Mr. Wagner adjusted his 1987 base salary
upward to a $180,000 to $200,000 range to reflect the fact that Mr.
Leonard was entitled to a greater base salary than he had
previously received. We believed an adjustment for the 1987 base
salary to $200,000 was appropriate and reasonable. Further, we
believed Mr. Leonard should have been given credit for the
difference between the amount of his 1985 and 1986 base salaries
and $200,000, reflecting Mr. Leonard's undercompensation for those
years. (The 1985 and 1986 base salaries were short by $37,748
($200,000 - $162,252) and $57,252 ($200,000 - $142,748),
respectively.) Thus, Mr. Leonard was entitled to $95,000 to
reflect his undercompensation for 1985 and 1986. Finally, we
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