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those performed by Rose. Dorf identified eight companies for
purposes of his analysis. In his analysis, Dorf also considered
data published in at least five different executive compensation
surveys. Based upon the entirety of his analysis, Dorf concluded
that reasonable compensation amounts for the services that Rose
performed for PK Ventures and its subsidiaries during 1992 and
1993 were $383,104 and $362,356, respectively.
Petitioners contend that the compensation that Rose received
from PK Ventures and its subsidiaries during 1992 and 1993 was
reasonable based on an analysis of the following factors:
(1) Dividend history; (2) past and present financial conditions;
(3) nature, extent, and scope of employee’s work; (4) complexity
of employer’s business; (5) risk assumed by the employee; and
(6) employee’s qualifications and training. Petitioners attempt
to discount the determinations of reasonable compensation made by
their own expert by arguing that his determinations reflect a
conservative approach. Petitioners also attempt to discredit the
determinations of reasonable compensation made by respondent’s
expert by calling his determinations “facially suspect”.
Furthermore, petitioners argue that there is no consensus in the
determinations made by Ugone and Dorf. Conversely, respondent
contends that “there is an expert consensus as to reasonable
compensation for the duties that Rose performed on behalf of
PK Ventures during 1992 and 1993.” Respondent concludes that
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