Eberl's Claim Service, Inc. - Page 16




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               1.   Employee's Qualifications                                         
               An employee's superior qualifications for his or her                   
          position with the business may justify high compensation.  Home             
          Interiors & Gifts, Inc. v. Commissioner, 73 T.C. 1142, 1158                 
          (1980).  Eberl was highly qualified for his position with                   
          petitioner.  This factor favors petitioner.                                 
               2.   Nature and Scope of Employee's Work                               
               An employee's position, duties performed, hours worked, and            
          general importance to the success of the company may justify high           
          compensation.  Rutter v. Commissioner, supra; American Foundry v.           
          Commissioner, 536 F.2d 289, 291-292 (9th Cir. 1976), affg. in               
          part and revg. in part 59 T.C. 231 (1972); Mayson Manufacturing             
          Co. v. Commissioner, supra.                                                 
               Eberl was responsible for the rapid growth in petitioner's             
          gross receipts.  Gerald Underwood, a catastrophe operations                 
          supervisor for State Farm during the years at issue, testified              
          that State Farm would not have hired petitioner to adjust claims            
          resulting from Hurricane Andrew if not for Eberl.                           
               Eberl has at times performed or overseen virtually every               
          task for petitioner except accounting.  He made virtually every             
          important business decision for petitioner before and during the            
          years at issue.                                                             
               Respondent contends that it is common for a CEO to work long           
          hours, suggesting that Eberl's schedule was nothing out of the              






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