Compensation

 

A common issue in company valuations, stockholder disputes, divorces where the family business is an asset, and lost earning capacity cases is appropriate compensation for an occupation or job position.  Philip Saunders Associates' (PSA's) estimates of appropriate compensation are based not only on standard industry, research, and statistical sources but also on Dr. Saunders' business experience and knowledge of how businesses actually work.

Selected Cases

  • For CEO, who had worked for low pay for decades based on promise he would inherit company and then didn't inherit it, PSA quantified quantum meruit damages: the difference between the market rate for CEO's work and what he was paid, assuming the difference had been invested over the CEO's working life ($7,500,000), and the value of the promised company ($29,400,000).  Dr. Saunders testified at trial, and the jury awarded $29,900,000.                                                                                                                                         
  • For minority stockholder frozen out of privately held fuel oil distribution company, PSA analyzed company, position in industry, and financial performance, and researched compensation of managers in comparable companies.  Dr. Saunders testified at trial as to stockholder/managers' overcompensation and mediocre financial performance of company.  Result was directed buyout on terms favorable to client.
  • For client in contested divorce, PSA analyzed business of a crematorium and cemetery company, including the job of an "Executive" on the payroll, who was a friend of the owner.  Dr. Saunders testified at trial that, based on  job functions performed, "Executive" was really an office manager and her market compensation would be substantially less than her actual pay. 
 
     
 

                                   ┬ę 2014 Philip Saunders Associates

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