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Business Organizations Keyed to Macey
Heller v. Boylan
Citation:29 N.Y.S.2d 653 (1941)
The suit derives from an incentive compensation bylaw of the American Tobacco Company, known as Article XII. Thereunder 10 percent of the annual profits over the earnings of the properties in 1910 are to be distributed, 2 1/2 percent to the president and 1 1/2 percent to each of the five vice presidents. Profits undulated with the years, but at all times they were quite lush. By virtue of this bylaw, the officers have received bonuses aggregating $11,672,920.27. The president, George W. Hill, alone received $592,370 in 1929. The plaintiffs maintain that these large bonus payments bore no relation to the value of the services for which they were given that they were in reality a gift in part and that they majority stockholder committed waste and spoliation in thus giving away corporate property against the protest of the minority.
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