B & D Foundations, Inc. - Page 36




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          remedy that undercompensation.  As noted by respondent’s expert,            
          Mr. Myers and Mrs. Myers were extremely well compensated                    
          commencing with petitioner’s 1993 fiscal year.  We thus give                
          little weight to petitioner’s and Mr. Gelfond’s unsupported                 
          contention that petitioner’s prior undercompensation of Mr. Myers           
          and Mrs. Myers still remained largely unremedied when the                   
          deferred compensation agreements were entered into.21                       
               We also reject Mr. Gelfond’s suggestion that Mr. Myers and             
          Mrs. Myers are entitled to the compensation that would be                   
          provided to six full-time executives/employees serving as                   
          petitioner’s chief executive officer, chief financial officer,              
          chief operating officer, bookkeeper, personnel manager, and                 
          office manager.  Although Mr. Myers and Mrs. Myers may have                 
          performed some of the duties of six such executives/employees,              
          they did not perform work equal to the full-time services of six            
          such executives/employees.22                                                

               21Petitioner also asserts that the amounts it treated as               
          constructive dividends under its settlement with respondent for             
          its 1993 and 1994 fiscal years, still represented reasonable                
          compensation to Mr. Myers and Mrs. Myers for purposes of the                
          case.  We draw no adverse inference from petitioner’s subsequent            
          treatment as dividends under that settlement of part of its 1993            
          and 1994 fiscal year compensation to Mr. Myers and Mrs. Myers.              
          See also Fed. R. Evid. 408.                                                 
               22This Court and other courts in numerous reasonable                   
          compensation cases have considered the employee-recipient’s                 
          performance of more than one function for the employer but have             
          concluded that the recipient’s reasonable compensation should be            
          less than the sum of the amounts paid to full-time employees each           
          of whom occupied one such position.  See, e.g., Labelgraphics,              
                                                              (continued...)          




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