B & D Foundations, Inc. - Page 40




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               Although statistical surveys analyzing the top executive               
          compensation paid by other construction companies can sometimes             
          be useful for comparison purposes in examining the reasonableness           
          of compensation, such statistical surveys are not dispositive.              
          More importantly, the companies covered in the Watson Wyatt and             
          Conference Board surveys were not reasonably comparable to                  
          petitioner.  Mr. Packard acknowledged that the Watson Wyatt                 
          survey was “normally more appropriate for companies with [annual]           
          sales in excess of $100 million.”  Similarly, the Conference                
          Board survey also covered construction companies that were                  
          generally many times the size of petitioner.                                
               With respect to his own survey of seven other residential              
          homebuilding companies, Mr. Packard provided few specifics                  
          regarding these companies he selected, omitting, among other                
          things, their number of employees, the business conditions in the           
          area in which they operated, and how similar their businesses               
          were to petitioner’s business.  It appears that those seven                 
          residential homebuilding companies had annual sales ranging from            
          $5.938 million to $55.628 million, and that their shares were               
          publicly traded.  Of those seven companies, the company having              
          the second lowest annual sales had sales of $17.678 million.  In            
          addition, Mr. Packard failed to elaborate on the particular                 
          skills and qualifications of the individual executives in those             
          companies, and the similarities or dissimilarities of their                 
          services to those performed by Mr. Myers and Mrs. Myers.                    



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