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Generally, petitioner’s officers other than Mr. Wechsler did
not make bonus recommendations for themselves or petitioner’s
other employees. While the proposed bonuses would be discussed
at a meeting of petitioner’s board of directors, Mr. Wechsler
made the final decisions regarding the salary and bonuses that
petitioner paid to each of its employees and officers, including
himself. At no time did petitioner’s board of directors reject
the compensation that Mr. Wechsler proposed for himself, nor did
the board ever authorize him to receive more or less than the
amount of compensation that he proposed for himself.
During its 1992 through 1999 fiscal years, petitioner paid
Mr. Wechsler a base salary, a December bonus, and a May bonus as
follows:
December Total
FYE May 31 Base Salary Bonus May Bonus Annual Comp.
1992 $390,000 $750,000 $3,250,000 $4,390,000
1993 390,000 2,000,000 2,500,000 4,890,000
1994 390,000 3,000,000 3,700,000 7,090,000
1995 405,000 30,000 5,425,000 5,860,000
1996 390,000 -- 5,000,000 5,390,000
1997 390,000 -- 1,000,000 1,390,000
1998 415,000 32,000 7,040,000 7,487,000
1999 571,694 23,076 900,000 1,494,770
Petitioner paid and deducted $80,359 as compensation to
Gilbert for its 1992 fiscal year. It paid and deducted $108,097
as compensation to him for its 1993 fiscal year.
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