Travel$ense User's Guide (PDF, 139 MB) - NBAA

TRAVEL$ENSEappraisal of a given property, have reached conclusions that varied from 20 to30 percent. 10VALUES OF MANAGEMENT AND PROFESSIONAL EMPLOYEE TIMEA number of methods that are widely applied professionally and in businesspractices to determine the value of executives and other employees tocorporations. Eight of these methods have been identified as being appropriatefor application to corporate personnel. From among these eight, three withmultipliers greater than 10 were subsequently discarded as being unrealistic.The remaining five have been used as a basis for determining the seniorexecutive value. Four of the same five also have been used to determine of thevalue of middle management and professional personnel.Multipliers derived from application of the five methods selected are set below.The averages are utilized in all calculations concerning the value of time.MULTIPLIERS FOR SENIOR EXECUTIVESMethod Multiplier AverageService Industries 5.0 – 7.0 6.010 Percent Rule – Whole Life 4.9 4.9Benefit Term Insurance 5.0 – 7.0 6.0Replacement Cost Insurance –5.0 – 5.3 5.15Present Value of Term of ReplacementReplacement Cost Insurance –6.4 – 6.7 6.55Present Value of Term of ReplacementPlus InefficienciesTotal 28.6/5 5.7MULTIPLIERS FOR MIDDLE MANAGEMENT AND PROFESSIONALSMethod Multiplier AverageService Industries 2.5 – 5.0 3.75Benefit Term Insurance 3.0 3.0Replacement Cost Insurance –3.5 3.5Present Value of Term of ReplacementReplacement Cost Insurance –4.8 4.8Present Value of Term of ReplacementPlus InefficienciesTotal 15.05/4 3.8DETERMINING VALUES OF EMPLOYEE TIMEThere is a wide range of factors that are commonly used in determining thevalues of employees, skilled professionals and management of companies. These16510 Op. Cit., Huebner, S.S., p. 59.Copyright © 1999, National Business Aviation Association, Inc.