- 31 -
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.
Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 NextLast modified: May 25, 2011