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good compensation practice. On that basis, Mr. Katz opined that
Dennis and Curtis were overpaid by an almost unprecedented
amount. On the basis of Mr. Katz' opinion, respondent contends
on brief that compensation petitioner paid to Dennis and Curtis
in excess of the following amounts for 1995 and 1996 was
unreasonable:
Position 1995 1996
Dennis (CEO) $243,000 $258,600
Curtis (COO) 192,450 202,350
Mr. Katz based his analysis of compensation paid to Dennis
on the duties performed as the CEO and his analysis of
compensation paid to Curtis on the duties performed as the COO.
Mr. Katz did not consider any other functions performed by Dennis
and Curtis or the number of hours they worked.
We find the report of Mr. Katz to be unreliable. The report
contains several typographical and mathematical errors. Although
some errors were corrected by Mr. Katz' testimony at trial,
others were not. Except for a statement in his report that the
median salaries were based on ERI data, the report does not
include the ERI data used by Mr. Katz to determine the median
salaries and does not indicate the number of corporations, CEO's,
or COO's included in the data. Additionally, although Mr. Katz
testified that he looked at the range of compensation to evaluate
the quality of the data, the report does not provide a range of
compensation amounts from the ERI data.
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