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concrete contracting companies covered in the survey upon which
he based his opinion. He also offered no information on the
particular qualifications, skills, services, or compensation of
the executives of those companies. We thus are unable to
determine: (1) How similar these other unidentified companies
and their businesses are to petitioner; and (2) how similar the
services their officers performed are to the services performed
by Mr. Myers and Mrs. Myers.
Furthermore, although Mr. Gelfond opined that the $1,113,800
in compensation paid to Mr. Myers and Mrs. Myers that year was
reasonable, he failed to address the contribution for their
benefit to petitioner’s qualified retirement plan. This
retirement plan contribution represented significant additional
compensation to Mr. Myers and Mrs. Myers and was part of their
total compensation package during petitioner’s fiscal year ended
July 31, 1996.
The Memorandum of Board Action authorizing petitioner’s
entry into the deferred compensation agreements, asserts that the
additional future payments of $488,000 were to remedy
petitioner’s past substantial undercompensation of Mr. Myers and
Mrs. Myers. However, as discussed more fully infra pp. 45-47,
petitioner and Mr. Gelfond presented no further analysis or
explanation of (1) the amount of Mr. Myers’ and Mrs. Myers’ prior
undercompensation during petitioner’s earlier years of operation,
or (2) the additional compensation needed in later years to
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