Litigation Support Case Studies
About the Company
The project was based on a future earnings analysis brought on by a wrongful death lawsuit.
Project Description
NFP Compensation Consulting (NFPCC) was retained by the plaintiff’s attorney to act as an expert witness and opine on a reasonable level of compensation for an individual on a future earnings basis. The attorney’s client was killed in an aviation accident and the attorney needed an expert to opine on what a reasonable lifetime level of compensation would have been for the individual barring the accident. NFPCC performed a compensation analysis including base salary, annual incentives and long-term incentives, assuming the individual had lived and worked until the typical retirement age of 65. Based on the analysis, NFPCC valued what a reasonable lifetime compensation package for the individual would have been if the accident had not occurred taking into account the various positions the individual may have encountered throughout their career.
Benefit To Client
NFPCC, acting as an expert witness, was deposed on the case. NFPCC provided a reasonable value for the individual’s future earnings. The analysis, combined with additional experts employed by the attorney, contributed to the favorable settlement of the case.
About the Company
The project was based on two business partners; one had a majority interest and the other a minority interest in the business with the majority interest partner trying to push the other out.
Project Type
Shareholder oppression based on past individual compensation analysis.
Project Description
NFP Compensation Consulting (NFPCC) was retained by the plaintiff’s attorney to act as an expert witness and opine on a reasonable level of compensation for the minority interest shareholder over a period of years. The attorney’s client, after 30 years in business with his partner, had his compensation reduced by 70% to a level that was no longer market competitive for the duties the client performed on a daily basis. The attorney needed an expert to opine on what a reasonable level of compensation would be for the client’s current duties and responsibilities while keeping in mind that both partners/shareholders had been compensated the same amount over the 30 years they had been in business together. NFPCC performed a market competitive compensation analysis including base salary, annual incentives and long-term incentives. Based on the analysis, NFPCC concluded that the client was competitively compensated prior to his reduction in compensation and now was being compensated below market competitive levels.
Benefit To Client
NFPCC, acting as an expert witness, was deposed on the case and took the stand in court. NFPCC provided a reasonable market competitive range for the client’s current compensation to confirm the client’s sudden reduction in compensation was unsubstantiated. The analysis, combined with additional experts employed by the attorney, contributed to a favorable verdict for the client in this case.
