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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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