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company in terms of assets, revenues, and net equity. He stated
that, when comparable companies in that range are found, a direct
comparison of the subject company to those companies may be made
and reliable conclusions may be drawn concerning the
reasonableness of the compensation paid by the subject company.
He testified that, when companies disproportionately greater in
size (beyond that range) are used and compared to the subject
company, any conclusions drawn with respect to the reasonableness
of the compensation paid by the subject company are likely to be
inaccurate and unreliable.
C. Respondent’s Expert, Scott D. Hakala
Scott D. Hakala is a principal and director of CBIZ
Valuation Group, Inc., an appraisal, financial advisory, and
litigation support firm. Mr. Hakala has a doctorate in
economics, has worked as an economist and financial analyst, and
has testified on numerous occasions as an expert witness on
valuation and other business matters. The Court accepted him as
a compensation expert.
Mr. Hakala opined that petitioner substantially
overcompensated Mr. Wechsler during the years in issue. He
believed that Mr. Wechsler not only was handsomely compensated in
petitioner’s very profitable years but also received high bonuses
even in petitioner’s down years, including its loss years. He
reasoned that an independent investor would object to such
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