- 37 -
In sum, Mr. Gelfond failed to compare the executive
compensation provided by other companies he surveyed with the
situation presented in the case at hand. Consequently, we give
his opinion little weight on the issue of comparability of
compensation paid by similar companies.
Respondent’s Expert
Respondent’s expert Stuart J. Packard is employed as a
general engineer and valuation and compensation specialist with
the Internal Revenue Service. He has a bachelor of science
degree in mechanical and civil engineering and also has been a
licensed professional builder in the State of Michigan.
Mr. Packard opined that reasonable compensation to Mr. Myers
for petitioner’s year ended July 31, 1996, would be $300,000, and
that reasonable compensation to Mrs. Myers for that year would be
$200,000.23
In arriving at those reasonable compensation amounts for Mr.
Myers and Mrs. Myers, Mr. Packard relied heavily on three
22(...continued)
Inc. v. Commissioner, T.C. Memo. 1998-343 n.6, affd. 221 F.3d
1091 (9th Cir. 2000).
23This $500,000 in total combined compensation to Mr. Myers
and Mrs. Myers for the 1996 fiscal year that respondent’s expert
Mr. Packard opined was reasonable is less than the amount
respondent determined in the notice of deficiency. However,
respondent has not sought to amend his answer to assert an
increased deficiency.
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