Indiana Jury Instruction — 10.10.1 Reasonable Compensation To Stockholder — Employee is a legal instruction that applies to cases involving the determination of reasonable compensation for a stockholder who is also an employee of a corporation. In such situations, the court provides guidance to the jury to help them evaluate the appropriate level of compensation that should be awarded to the stockholder employee. Keywords: Indiana, Jury Instruction, 10.10.1, Reasonable Compensation, Stockholder, Employee. This instruction aims to provide clarity on the factors that should be considered when determining reasonable compensation for a stockholder who works as an employee within the same corporation. The purpose is to ensure fairness and prevent potential abuse or exploitation of the corporate structure. The instruction outlines several crucial points for the jurors to consider when evaluating reasonable compensation. Firstly, it emphasizes that the determination should be based on what the corporation would ordinarily pay a non-stockholder employee in a similar position, considering factors such as qualifications, experience, responsibilities, and industry standards. Additionally, the instruction highlights that the compensation should match the services actually rendered by the stockholder employee. This means that the compensation should be reasonably related to the work performed, and excessive or inadequate payments should be avoided. Furthermore, the instruction reminds the jurors that the purpose of reasonable compensation is to provide an employee with fair wages for their efforts, rather than to enable tax avoidance or increased profits for the corporation. Type of Indiana Jury Instruction — 10.10.1 Reasonable Compensation To Stockholder — Employee: 1. Evaluation of Comparable Compensation: This type of instruction guides the jury on how to evaluate what a non-stockholder employee would typically be compensated for similar positions in the industry. It focuses on ensuring fairness and preventing any bias that may arise from the stockholder status. 2. Determination of Services Rendered: This type of instruction emphasizes the need for compensation to be proportionate to the services actually rendered by the stockholder employee. It aims to prevent excessive or inadequate compensation and ensures that the payment is based on the actual work performed. 3. Preventing Abuse of Corporate Structure: This instruction type focuses on the intention behind reasonable compensation, which is to provide fair wages for the stockholder employee's efforts rather than enabling tax avoidance or maximizing corporate profits. In summary, Indiana Jury Instruction — 10.10.1 Reasonable Compensation To Stockholder — Employee is a legal instruction that helps the jury determine the appropriate compensation for a stockholder who is also an employee of a corporation. The instruction guides the jurors in evaluating comparable compensation, determining services rendered, and preventing abuse of the corporate structure.