Officer Compensation Is 4% to 7% of Net Sales, Plus ‘Success Premium’

Business Valuation UpdateVol. 17 No. 6
Legal and Court Case Update
June 2011
breach of fiduciary duty

Rubin v. Murray
2011 WL 873472 (Mass. App.)
March 16, 2011
State Court
Court of Appeals
Howard Gordon (plaintiffs) and Thomas Quinn (defendants)


Federal court admits reasonable royalty rates based on past licensing agreements but bars lost profits evidence that fails to account for market factors that could have caused the loss.

See Also

Rubin v. Murray

Court relies on expert evidence and survey data to find that reasonable compensation for officers of midsize, closely held corporation comprised 4% to 7% of net revenues, plus 3% “success premium.”