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Research Institute (ERI). ERI compiles data from 2,400 surveys
taken by associations, governmental organization, and reports
submitted to the Government. Mr. Katz analyzed the data for
CEO's7 and COO's8 of construction companies with revenues of
approximately $6 million and doing business within 200 miles of
International Falls, Minnesota (but excluding the Minneapolis
area).
Using the ERI data, Mr. Katz calculated that the median
comparable compensation (including bonuses but excluding
benefits) for CEO's and COO's for 1995 and 1996 was as follows:
Position 1995 1996
CEO
Base $142,800 $152,400
Bonus 19,200 20,100
Total 162,000 1172,500
COO
Base 99,700 106,400
Bonus 28,600 28,500
Total 128,300 134,900
1Mr. Katz incorrectly indicated a total of $172,400 in his
report.
Mr. Katz opined that compensation for comparable positions
can vary as much as 50 percent above or below the median and that
variances greater than 50 percent are generally not considered
7The ERI survey defines the CEO as the highest ranking and
paid officer in the company with overall responsibility for
directing the running and planning of the company's business
activities.
8The ERI survey defines the COO as the second highest
ranking and paid officer in the company with subordinate
responsibility to manage costs and achieve goals.
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