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Wechsler substantially undercompensates him for his contributions
to petitioner.
We now consider in more detail the testimony of the parties’
experts.
B. Petitioners’ Experts
Petitioner offered Gilbert E. Matthews and Paul R. Dorf as
experts in compensation practices in the securities industry, and
they were accepted as such by the Court.
1. Gilbert E. Matthews
Mr. Matthews is chairman of the board and senior managing
director of Sutter Securities, Inc. He has more than 40 years of
experience working in investment banking. He was asked to
testify with respect to compensation practices in the securities
industry and the return on petitioner’s common stock.
In attempting to determine customary compensation in the
securities industry, Mr. Matthews examined 27 broker-dealers
whose stock was publicly traded and their financial statements
covering all or a significant portion of the years in issue. He
obtained their financial information from either their annual
reports or their registration statements filed with the SEC.
Those 27 broker-dealers had average annual net revenues for the
periods being examined ranging from $21 million to approximately
$3.79 billion. Of the 27 broker-dealers, the four largest--
Lehman Brothers, Paine Webber, Bear Stearns & Co., and A.G.
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