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2. The Foundation’s Compensation Committee
In 2001, the foundation’s compensation committee, which was
formed at the request of the attorney general of New York
pursuant to the attorney general’s supervisory authority over
charitable foundations in the State of New York,6 hired a
compensation consultant, Pearl Meyer & Co. (Pearl Meyer), to
evaluate reasonable compensation for Bergreen, Moody, and Davis
and six other executives of the foundation and its subsidiaries.
In October 2001, the compensation committee reviewed Pearl
Meyer’s report and recommended that the foundation pay Bergreen
$17 million as compensation for services he provided to HG under
article 10 and for selling Gilman Paper Co. under article 12.
Bergreen and Moody requested, and the compensation committee
recommended, that Davis receive $5 million for his return from
retirement and the successful turnaround and sale of Gilman Paper
Co. The foundation’s board of directors approved the committee’s
recommendation.
F. Administration of the Estate in 2000-03
1. Allocation of $1 Million in Expenses to Income
On November 6, 2001, the executors reported to respondent
that they had agreed to pay legal fees totaling $3.6 million,
6 See N.Y. Est. Powers & Trusts Law sec. 8-1.4 (McKinney
2003) (attorney general has enforcement and supervisory powers
over nonprofit entities); In re Estate of Shubert, 442 N.Y.S.2d
703, 712-713 (N.Y. Sur. 1981).
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Last modified: May 25, 2011