New source (besides ERI) of CEO compensation data for reasonable compensation analyses
BVR has consulted over the last year with Chief Executive Group (CEG) – publishers of CEO Magazine, on their new study of private company owner pay. The result was released this week–and it adds a second very strong benchmarking resource for reasonable compensation calculations (the first, of course, being data from ERI). The new CEO and [...]
Rataj and Yeanoplos provide some practical guidelines for calculating reasonable compensation
Today’s session on reasonable comp started out with agreement that there is no standard definition that works in all situations. Kevin Yeanoplos (Brueggeman and Johnson Yeanoplos) said his working theory is that reasonable comp is the number he’d have to pay to hire some one to do exactly the work an owner is doing. [...]
Yeanoplos and Rataj update their session on reasonable compensation
Blake Lyman, Manager of Professional Development at BVR, just announced the agenda for the session on reasonable compensation at BVR’s 3rd Annual Divorce Summit. Here’s the update: Session title: Show Me the Money! The Exploration, Examination and Dissection of Reasonable Compensation The determination of “reasonable compensation” is arguably the most important variable in most valuations [...]
AICPA and NACVA BV standards help persuade court re: importance of normalization adjustments in income approach
First the trial court found that two shareholders in a South Carolina medical supply company had been diverting funds to pay themselves excessive salaries. Next, it ordered the shareholders to buy-out the dissenting owners and appointed a business appraiser to determine statutory fair value. In his engagement letter, the appraiser agreed to comply by the [...]
Maggio and Seigneur provide exec compensation source checklist for reasonable compensation “build-ups”
Sharyn Maggio (Maggio & Co.) and Ron Seigneur (Seigneur Gustafson) addressed new developments in the reasonable compensation area at the AAML/AICPA conference last week in Las Vegas. Seigneur advised: “When trying to determine reasonable compensation for owner/employees, it is really important to figure out exactly what their real duties are. Do they spend 50% of [...]
Share your thoughts...