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 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.
- For injured owner and manager of retail food business with medical malpractice claim, PSA researched compensation of food store managers and estimated what the individual could have earned working as an employee for other retail food companies. Estimate supported calculation of lost earning capacity as manager of the plaintiff's own business. Dr. Saunders testified at arbitration as to the economic loss, which was $1,850,000.