Normandie Metal Fabricators, Inc. - Page 31

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          years, (3) overstated Isidore Klein’s contributions to petitioner           
          in 1993 and 1994, (4) gave too little weight to data from surveys           
          he cited in his report which suggest that Isidore and Steven                
          Klein were overpaid, (5) used as comparables corporations that              
          were more than four times larger than petitioner, (6) analyzed              
          the reasonableness of Steven Klein’s compensation based in part             
          on data for which he provided no source and using a method that             
          in effect assumed that Steven Klein’s compensation was                      
          reasonable, and (7) incorrectly assumed that petitioner’s                   
          compensation practices were similarly generous to all of                    
          petitioner’s employees.                                                     
               The companies which Dorf compared to petitioner had annual             
          revenues averaging $17 million, more than four times those of               
          petitioner.  He estimated that Isidore Klein was paid about                 
          $66,000 more in 1993 and about $82,000 more in 1994 than the                
          average compensation paid to the CEO’s of those companies.                  
          Isidore Klein was paid $116,000 to $178,000 more in 1993 and                
          $68,000 to $244,000 more in 1994 than CEO’s whose compensation              
          ranked in the third quartile of companies that responded to 1993            
          and 1994 National Executive Compensation and Panel Publication              
          surveys (i.e., CEO’s whose pay ranked from the 50th percentile to           
          the 75th percentile).  Despite the data from these surveys, Dorf            
          concluded that Isidore Klein was not overpaid.                              








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