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information concerning petitioner and Mr. Wechsler, and the facts
and circumstances of the situation presented.
Mr. Dorf examined the sources of petitioner’s income for the
years at issue and included the following chart in his expert
report:
FYE Principal Dividends/
May 31 Commissions Transactions Interest Other Total
1992 $24,567 $11,118,059 $3,203,830 $1,120,217 $15,466,673
1993 27,071 12,288,119 4,017,604 1,501,475 17,834,269
1994 67,964 8,356,715 3,042,308 271,309 11,738,296
1995 64,729 15,628,125 3,421,921 913,506 20,028,281
1996 70,912 21,843,852 3,641,947 1,211,716 26,768,427
1997 106,213 135,729 3,011,003 1,477,071 4,730,016
1998 24,066 14,243,962 1,111,818 1,463,678 16,843,524
1999 13,124 (8,942,848) 254,813 161,601 (8,513,310)
Total 398,646 74,671,713 21,705,244 8,120,573 104,896,176
Mr. Dorf examined and analyzed petitioner’s annual revenues
and retained earnings from 1991 through 2000 and Mr. Wechsler’s
compensation for the 1992 through 1999 years in issue, as
follows:
FYE Retained Percentage Percentage Mr. Wechsler’s Percentage
May 31 Earnings Change Revenue Change Total Comp. Change
1991 $18,043,103 -- $14,763,269 -- No data --
1992 21,336,807 18% 15,466,673 5% $4,390,000 --
1993 26,923,441 16 17,834,269 15 14,905,000 12%
1994 24,821,032 -8 11,738,296 -34 7,090,000 45
1995 31,870,981 28 20,028,281 71 15,875,000 -17
1996 44,546,634 40 26,768,427 34 5,390,000 -8
1997 40,248,943 -10 4,730,016 -82 1,390,000 -74
1998 42,859,076 6 16,843,524 256 7,487,000 439
1999 26,949,031 -37 (8,513,310) n/a 1,494,771 -80
2000 50,887,981 88 15,693,799 n/a No data No data
1 As determined in our findings, Mr. Wechsler’s actual total annual
compensation for 1993 was $4,890,000 and his actual total annual compensation for
1995 was $5,860,000.
Mr. Dorf concludes:
There appears to be a relationship between * * *
[petitioner’s] performance and Mr. Wechsler’s
compensation levels. While compensation levels in 1994
and 1998 were higher than expected in light of the
decrease in Fiscal Year End performance of * * *
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