E.J. Harrison and Sons, Inc. - Page 39

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          similarity of such duties (which, in pertinent part, include                
          participation “in outside activities which will enhance corporate           
          prestige and fulfill the corporation’s public obligations as a              
          member of industry and the community”, conducting regular and               
          special board meetings, and carrying out “special assignments”)             
          to the principal duties discharged by Mrs. Harrison:  Her                   
          community activities as a representative of petitioner and her              
          presiding over (1) petitioner’s weekly and annual board meetings            
          and (2) the ad hoc meetings with employees arranged by her sons.            
          Moreover, because very few companies pay fees to inside directors           
          and board chairs, but almost all companies pay fees to outside              
          directors and board chairs, the vast majority of the survey data            
          must relate to outside directors.  Lastly, although it is true              
          that the survey data do not identify the number of responding               
          companies, Mr. Carey describes the ERI surveys as “broadly                  
          based”, and he bases his conclusions as to board chair                      
          compensation on what he describes as a “large-sample survey”.               
          Moreover, he specifically declines to rely upon the results of a            
          narrower survey involving only five board chairs.   We give Mr.             
          Carey the benefit of the doubt and assume that, as an                       
          acknowledged expert in the area of executive compensation, he has           
          relied upon survey data that are representative of a critical               
          mass of respondents.                                                        
               Mrs. Harrison’s personal guaranties of petitioner’s debt               
          were not typical of an outside board chair.  But, for the reasons           




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