Wake North Carolina Jury Instruction — 10.10.1 Reasonable Compensation To Stockholder — Employee In Wake County, North Carolina, when it comes to determining reasonable compensation to a stockholder-employee, the jury instruction 10.10.1 serves as a guideline. This instruction provides detailed information and establishes the standards for determining what constitutes reasonable compensation for stockholder-employees in various situations. Keywords: Wake North Carolina, jury instruction, 10.10.1, reasonable compensation, stockholder-employee. Types of Wake North Carolina Jury Instruction — 10.10.1 Reasonable Compensation To Stockholder — Employee: 1. Reasonable Compensation for Stockholder-Employees This instruction outlines the criteria and factors that should be considered when deciding the reasonable compensation amount for stockholder-employees. It takes into account factors such as the nature of the business, the stockholder's financial contribution, the industry standards, and the stockholder's job responsibilities. The instruction guides the jury in calculating the fair and justifiable compensation based on these factors. 2. Evaluation of Employee's Contribution to Stockholder Status This type of instruction focuses on determining the fair compensation for stockholder-employees based on their level of contribution to the company as both an employee and a stockholder. It may consider factors such as the stockholder's expertise, dedication, and impact on the company's success. The instruction helps the jury evaluate the stockholder-employee's dual role and establish reasonable compensation accordingly. 3. Compliance with Internal Revenue Service (IRS) Regulations This instruction focuses on the compliance of reasonable compensation with the IRS regulations. It informs the jury about the IRS guidelines regarding reasonable compensation determination, including the importance of avoiding excessive compensation that could be subjected to taxation as dividends. The instruction ensures that the jury understands the IRS regulations and considers them while determining the reasonable compensation for stockholder-employees. 4. Evaluation of Comparable Industry Standards This type of instruction directs the jury to consider the prevailing industry standards in determining reasonable compensation for stockholder-employees. It highlights the significance of comparing the compensation amounts of similar companies in the same industry with similar employee roles and responsibilities. The instruction enables the jury to analyze and align the compensation with the industry norms, ensuring a fair and justifiable outcome. 5. Consideration of Non-Financial Factors This instruction emphasizes the importance of considering non-financial factors while determining reasonable compensation for stockholder-employees. It covers elements such as the stockholder's qualifications, experience, and the risks associated with the business. By instructing the jury to consider these non-financial factors, the instruction ensures a comprehensive evaluation and a fair compensation decision. Overall, Wake North Carolina Jury Instruction — 10.10.1 Reasonable Compensation To Stockholder — Employee provides a detailed framework for determining reasonable compensation for stockholder-employees. It covers various types and factors to consider, ensuring a fair and justifiable outcome in accordance with industry standards and IRS regulations.