Square D Company and Subsidiaries - Page 103

                                       - 82 -                                         
          not shown that any comparable executives, outside an acquisition            
          context, received similar increases in their compensation over              
          this period.                                                                
                    3.  Analysis of Comparables                                       
               As noted previously, the two experts’ use of compensation of           
          purportedly comparable executives disclosed in SEC proxy filings            
          to test the reasonableness of the Retained Executives’                      
          compensation was a principal basis for their conclusions and, of            
          Ms. Meyer’s various “external” analyses, the only one we have not           
          rejected.  However, the approach used by Ms. Meyer raises two               
          threshold methodological issues that must be resolved.                      
                    a.   Relevant Period for Reasonable Compensation                  
                         Comparison                                                   
               In developing her comparables analysis, Ms. Meyer generally            
          considered compensation data for the aggregate period of 1992               
          through 1995 in her opening report; in her rebuttal report she              
          considered data for 1992 only.  Mr. Rosenbloom generally                    
          considered such data for 1992 only.  Ms. Meyer’s use of 4-year              
          aggregate figures in her analysis presents a threshold                      
          methodological issue.  Ms. Meyer and petitioner, on brief, take             
          the position that the reasonableness of the Retained Executives’            
          compensation under the 1991 Employment Agreements (as amended)              
          should be assessed on the basis of the total compensation paid to           
          the Retained Executives over the approximately 4-year period                







Page:  Previous  72  73  74  75  76  77  78  79  80  81  82  83  84  85  86  87  88  89  90  91  Next

Last modified: May 25, 2011