- 47 - that the company's stock price rises greatly. In at least one other case, the Commissioner conceded that the value of stock options granted to employees in public companies should be considered in determining what like enterprises paid for like services. See Owensby & Kritikos, Inc. v. Commissioner, 819 F.2d 1315, 1330 n.60 (5th Cir. 1987) (experts calculated the average amounts the top three executives could expect to earn in cash and stock options for an outstanding performance), affg. T.C. Memo. 1985-267. When the compensation paid to Dennis and Curtis is compared with that of other CEO's who did receive options, the options must be considered as part of the compensation packages being used for comparison. See Labelgraphics, Inc. v. Commissioner, T.C. Memo. 1998-343, affd. 221 F.3d 1091 (9th Cir. 2000). Accordingly, we reject Dr. Lacey's opinion. 3. Paul A. Katz Respondent offered the report and testimony of Paul A. Katz (Mr. Katz) for purposes of establishing whether the compensation petitioner paid to Dennis and Curtis in 1995 and 1996 was comparable to that paid for similar positions in the industry. Mr. Katz is a compensation consultant certified by the American Compensation Association. Mr. Katz compared the compensation paid to Dennis and Curtis in 1995 and 1996 to the median compensation paid in those years to CEO's, and COO's, respectively, as reported by the EconomicPage: Previous 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Next
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