Summary
Tax Court finds CEO compensation reasonable under the independent investor test when return on equity approaches 20%, but finds negative 15% return unacceptable, and adjusts compensation to result in 10% return.
Multipak Corp. v. Commissioner
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See Also
Reasonable Compensation Analysis Must Incorporate Applicable Legal Test
Tax Court finds CEO compensation reasonable under the independent investor test when return on equity approaches 20% but finds -15% return unacceptable and adjusts compensation to result in 10% return.