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of the bonuses paid by the other companies. According to one
survey, CEO's in the construction industry earned median bonuses
equal to 100 percent of their base salaries, and COO's in the
construction industry earned median bonuses equal to 53 percent
of their base salaries. According to the other survey, CEO's
from all industries earned a median bonus equal to 90 percent of
their base salaries.
Dr. Lacey compared petitioner to the industry as a whole
using two financial ratios derived from the Robert Morris
Associates "RMA Annual Statement Studies". He calculated
officers', directors', and owners' compensation as a percentage
of sales for petitioner and compared the results with the median
for highway and heavy construction companies for which data was
available. Dr. Lacey calculated that petitioner's percentage of
sales ratio (on the basis of compensation paid to Dennis and
Curtis) was 24.4 percent in 1995 and 17.9 percent in 1996. He
calculated the median ratio for companies in each of the four
subcategories in the highway and heavy construction industry and
reported that the median ratio for companies doing highway and
heavy construction did not exceed 4 percent. The report does not
show the range of ratios for companies included in his
evaluation.
Dr. Lacey also calculated petitioner's pretax profit as a
percentage of tangible net worth and compared the results with
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