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payment treatment under Q&A-24(c) are parachute payments.58 The
total 1991 SRP Benefits paid to each Retained Executive,59 the
amount conceded by respondent as not contingent on a change in
control under Q&A-24(c) of the proposed regulations, and the
remainder that respondent contends is a parachute payment are as
follows:
1991 SRP Noncontingent
Benefit Amount Remainder
Denny $728,977 $728,977 0
Francis 358,854 118,422 $249,432
Free 804,477 596,260 208,217
Garrett 406,292 166,580 239,712
Hite 540,333 270,166 270,167
Kurczewski 367,304 143,249 224,055
Richardson 426,642 0 426,642
Williams 227,380 0 227,380
Because we conclude that the 1991 SRP Benefits should be
treated as compensation earned by the Retained Executives in
1992, those portions of the 1991 SRP Benefits conceded by
respondent as excluded from parachute payment treatment under
Q&A-24(c) are treated as part of the Retained Executives’ 1992
compensation for purposes of assessing whether petitioner has
shown that the Retention Payments and the disputed 1991 SRP
58 The parties have also stipulated that the amounts
denominated as “interest” paid with respect to the 1991 SRP
Benefits are deductible by petitioner in 1992 pursuant to sec.
163(a).
59 Messrs. Brink, Pugh, and Thompson did not receive any
1991 SRP Benefits.
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