Court Opinion

ID: 9455532
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:25:18.881682+00
Date Added: 2024-06-11T17:34:38.123856
License: Public Domain

MORGAN, District Judge
(dissenting).
In view of the findings that father and son functioned as petitioner’s chief executive team “formulating jointly all of its programs and policies,” and both devoted full time to the business, the conclusion that the services of the son “were more valuable to petitioner during the years in issue” than those of the father seems “clearly erroneous” to me. The Tax Court and the majority opinion here, recognize that the son’s compensation is not unreasonable and that total executive compensation is not inordinate in relation to profits. The effect of this decision, however, is to disallow such total in part and to do so by “evaluating” against each other the two members of a team who both work full time and act jointly in the important areas of the business. I am simply not possessed of sufficient wisdom to make such an evaluation, and I am not persuaded in any degree by the supposed indicia of executive value mentioned by those who have done so. Accordingly, I must register my dissent.