Key Employee


Also found in: Dictionary, Legal, Acronyms, Wikipedia.

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.
References in periodicals archive ?
At the end of the period, the business owner will sell the shares to the key employees (the terms of the sale should be governed by the agreement) and can then withdraw the pension funds in a lump sum.
If the key employee who has exhausted her available FMLA leave has a disability with the meaning of the ADA, an inquiry subject to a far less rigorous assessment following the ADA amendments, the employer could have a duty to accommodate the employee with, among other things, additional leave, intermittent leave, or a transfer to another position for which the employee is qualified.
In a recent survey of the Principal Financial Well-Being Index, more than three-quarters of key employees said they were interested in a tax-advantaged plan to help them save more for retirement, beyond the qualified retirement limits.
The general rule for key employee life insurance, where the corporation is the beneficiary, is that the insurance proceeds are taken into account in valuing the decedent's stock, but not necessarily included in the decedent's estate dollar for dollar.
Under these facts and circumstances, X does not meet the responsibility test and thus is not a key employee of U.
If an organization does not establish a presumption of reasonableness and the IRS questions compensation paid to key employees, the burden is on the organization to prove that the compensation is reasonable.
Publicly held businesses quite often use key employee coverage to assure shareholders that the price of stock will not plummet nor will dividends fall at the death of a president or other senior executive.
Key employee insurance still applies if the "key" is an owner.
Citycon Oyj (HEL:CTY1S) announced on Friday the approval by its board of directors of two new share-based incentive plans for its key employees, namely a Matching Share Plan 2018--2020 and a Restricted Share Plan 2018--2020.
Tieto s Board of Directors has approved two new share-based incentive plans for key employees of Tieto and its subsidiaries, a Performance Share Plan 2015 and a Restricted Share Plan 2015.
An alternative is to sell the business to a key employee or employees.