Square D Company and Subsidiaries - Page 119

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               Benefits constitute reasonable compensation for purposes of                                                       

               section 280G(b)(4).                                                                                               

                                     (iv)  Summary                                                                               

                      Applying the foregoing determinations regarding the                                                        

               appropriate measure of the Retained Executives’ 1992 compensation                                                 

               produces the amounts of 1992 compensation (excluding the                                                          

               Retention Payments and the disputed 1991 SRP Benefits) summarized                                                 

               in the following table:                                                                                           

               Retained                             Noncontingent                                                               
               Executive    Salary       STIP       LTIP1   1991 SRP Benefit  Perquisites     Total                              
               Brink       $216,720    $123,748   $197,400         0       $89,129       $626,997                                
               Denny        400,000    252,000     441,095    $728,977              0      1,822,072                             
               Francis      156,000     71,136     115,737     118,422         33,738        495,033                             
               Free         213,624     97,413     233,926     596,260              0      1,141,223                             
               Garrett      270,900    154,413           0     166,580              0        591,893                             
               Hite         245,100    139,953     220,030     270,166              0        875,249                             
               Kurczewski   210,000    119,910     188,278     143,249              0        661,437                             
               Pugh         207,174    118,090      95,388           0              0        420,652                             
               Richardson   159,833     72,884     120,629           0              0        353,346                             
               Thompson     236,844    135,001     205,127           0              0        576,972                             
               Williams     193,500     88,236     148,665           0              0        430,401                             
               1 Prorated (1/3) portion of LTIP paid in 1995 with respect to services rendered during 1992-94,                   
               except for Mr. Pugh, whose proration for 1992 is one-half, because he rendered services only in                   
               1992 and 1993.                                                                                                    
                              d.     Determination of Comparable Executives and Their                                            
                                     Compensation                                                                                

                      The experts differed regarding the choice of comparable                                                    

               executives and the determination of their compensation.  We next                                                  

               consider those differences in determining the extent to which                                                     

               petitioner has clearly and convincingly demonstrated the amount                                                   

               of compensation that was reasonable for the Retained Executives                                                   

               in 1992.                                                                                                          














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