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in Ms. Meyer’s opening report suggests how much compensation, of
the total amount calculated as reasonable for the 1992-94 period,
was reasonable for the services rendered in 1992. Accordingly,
the 4-year aggregate approach utilized by Ms. Meyer and urged by
petitioner is not persuasive in showing that the Retention
Payments and disputed 1991 SRP Benefits that petitioner treated
as earned in 1992 constituted reasonable compensation for
services rendered in that year--certainly not where petitioner
has the burden of demonstrating the foregoing by clear and
convincing evidence.
Perhaps sensing the flaw in her 4-year aggregate approach,
Ms. Meyer in her rebuttal report confined her analysis to 1992
alone. Because we reject the 4-year aggregate approach, we draw
heavily on Ms. Meyer’s rebuttal report in evaluating her opinions
in this case.
b. Aggregate Versus Individual Compensation
A second threshold methodological dispute concerns whether
the reasonableness of compensation for purposes of section
280G(b)(4) may be assessed on the basis of the Retained
Executives as a group or individually. Ms. Meyer and petitioner
take the position that the reasonableness of the Retained
Executives’ compensation need only be demonstrated in the
aggregate. That is, so long as the total aggregate compensation
of the 11 Retained Executives is reasonable in comparison to the
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