Key Employee

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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 ?
The board, in order to convey the part paid in shares to key employees, also decided to implement a directed share issue without payment based on the authorisation granted to the board of directors by the Annual General Meeting of 23 March 2017.
The cash proportion is intended to cover taxes and tax-related costs arising from the rewards to the key employees.
For the key employees of the business areas Kalmar, Hiab and MacGregor, the potential reward of the measuring period 2018 will be based on the business areas' service gross profit, and for Navis software divisions' key employees, on Navis' sales and on sales excluding TOS-business.
Excluding even key employees from the plan will eliminate some of the difficulties in passing IRS nondiscrimination testing, and will simplify plan administration.
It seems simpler to first approach your key employees or someone within your industry before going out on the market.
For example, a nonqualified deferred compensation plan allows key employees to defer income taxation.
Step 3 - Personal Planning: The third step is to introduce personal planning for the owner and key employees.
In keeping with our commitment to growing ownership by employees, on the advice of the Board of Directors of Systems Limited, its share-holders approved the transition of significant ownership to the future key employees of the company led by Arshad Masood CEO of Visionet Systems (the US partner of Systems Limited) and Asif Peer and their strong team of Engagement Managers.
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.
This term needs to be understood to determine if the entity has key employees or which employees are key employees.
Related-party transactions must be disclosed on Form 990 and explain existing relationships between officers, directors, trustees, key employees, highest-paid employees, and highest-paid professional or other independent contractors of certain tax-exempt organizations.
When a business desires to fund one or more obligations of the business at the death of a group of key employees (for example, the funding of large health and retirement benefits).