Case Study: a medium-sized West Coast business defends reasonable compensation in litigation with RCReports

RCReports helps business valuation expert defend reasonable compensation in litigation

A medium-sized West Coast business faced litigation from a shareholder who alleged that family members working as company officers were receiving excessive compensation. This dispute, arising during a divorce and a simultaneous share sale, required defensible, objective compensation figures to prevent a costly court battle. Compensation consultant Stephen Kirkland was brought in and utilized RCReports to establish and validate reasonable compensation for the officers.

Using RCReports' digital interview questionnaires and data analysis, Kirkland was able to determine accurate and justifiable compensation ranges for each officer, which were tailored to their individual contributions. The objective data provided by RCReports was thoroughly documented, satisfying all parties involved. The case was successfully settled in mediation, avoiding further litigation, and the company subsequently committed to periodic compensation reviews to prevent future disputes.