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Key Employee

   Also found in: Dictionary/thesaurus, Legal, Acronyms 0.01 sec.
Key Employee
A very important employee. A key employee may have contacts highly beneficial to the company, may work hard and generate more revenue than any other employee, or may have some other skill that would be difficult or impossible to replicate in another employee. Often, but not always, a key employee is a manager. A company may purchase key person insurance to protect itself against the possibility that an employee may unexpectedly die or become unable to work, which would deprive the company of his/her skills.


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Also make sure you have solid contingency plans that protect the value of your assets and minimize tax burdens in the event that you, your partners or any of your key employees die or become unable to contribute to building company value.
The instructions state that for purposes of reporting on Form 990, a key employee is an employee (other than an officer, director, or trustee) who meets all of the following requirements: 1.
AIG American General in September launched AIG Corporate Investor for use with nonqualified deferred compensation plans to attract, retain and reward key employees.
 
 
 
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