Bankruptcy Usage of Key Employee Retention Plans and Key ...

For practical reasons, companies facing financial uncertainty need to retain key employees. Therefore, the Bankruptcy Code enacted a pay-to-stay ...

Executive Compensation in Bankruptcy: Motivating Key Employees ...

While Section 503(c) has curbed the use of KERPs for insiders, retention plans are still standard for non-insider employees critical to an ongoing business.

The increasing use of pre-bankruptcy executive retention bonuses

Historically, companies filing for Chapter 11 bankruptcy routinely sought bankruptcy court approval to implement so-called key employee ...

Replacing key employee retention plans with incentive plans in ...

We examine executive bonus contracts in corporate bankruptcies. Introduced in 2005, Section 503(c)(1) of the United States' Chapter 11 corporate bankruptcy ...

KEIP AND KERP

KEIPs (Key Employee Incentive Plans) and KERPs (Key. Employee Retention Plans) can bring controversy to a bankruptcy case, because the Bankruptcy Code limits ...

BAPCPA's Treatment of KERPs: A Prime Example of Why Leaving It ...

In its purest form, a key employee retention program (KERP) is a pay-to-stay program that affords highly valued employees compensation in addition to their pre- ...

Above-Board: Officers of a Corporation Not Entitled to Key Employee ...

Above-Board: Officers of a Corporation Not Entitled to Key Employee Retention Plan Payments ... A key goal of the Bankruptcy Code is to prevent ...

Critical Differences between Key Employee Retention Plans and ...

... bankruptcy courts to refer to the plans under section 503(c)(1) of the Bankruptcy Code.8. B. Key Employee Incentive Plan (“KEIP”). Section 503(c)(3) prohibits ...

In Bankruptcies Triggered by COVID, Retention is Key for Executive ...

These programs are often called Key Executive Retention Programs (KERPs). Executive retention awards in bankruptcy situations today have a ...

An Introduction to the World of Bankruptcy Compensation

Key Employee Retention Plans (KERPs). To incentivize “non-insider” employees to remain with the company during a bankruptcy period, “stay ...

Key Employee Retention Plans in Bankruptcy - Semantic Scholar

This paper examines the use of key employee retention and incentive plans (KERPs) in bankrupt firms. We find that firms in Chapter 11 are more likely to ...

"Critical Differences between Key Employee Retention Plans and ...

... Bankruptcy Code”) imposes strict limitations on companies in chapter 11 who want to make bonus payments to retain employees. In particular, section 503(c) ...

KEIPing Key Employees Motivated in Bankruptcy and Beyond

To address these conflicting interests, prior to 2005, companies typically retained executives by implementing key employee retention plans ( ...

Key Employee Incentive Plans (KEIPs) Versus Key ... - Westlaw

A Practice Note discussing the key attributes and differences between key employee incentive plans (KEIPs) and key employee retention plans (KERPs) in ...

Key Employee Retention Plans, Executive Compensation, and ...

losses while at the same time United's “CEO used the bankruptcy laws to take pay, bonuses and stock equaling over 1000 times” her compensation and received ...

Employee Considerations in Corporate Restructurings

The Bankruptcy Code provides that severance payments and bonuses paid under a key employee retention plan (KERP) that are made to “insiders ...

Fighting a Management Bonus Plan - Cohen, Weiss and Simon LLP

To the company's rank-and-file employees, who may face wage and benefit cuts during the Chapter 11, such bonus plans — typically called “key ...

Businesses in Distress or Filing Bankruptcy Should Reassess ...

Key Employee Retention Plans: After filing for bankruptcy, companies often adjust compensation for key employees that are not part of the management team ...

Court Approves Key Employee Incentive Plan, Finding it is Not a ...

KERPs are programs designed to retain a select group of employees and typically incorporate the payment of a fixed lump sum, either on a one- ...

Key Employee Retention Programs (KERPs) and the Role of the Board

As such, KERPs are implemented to support the retention of key employees throughout the restructuring process. Under either a CCAA/CBCA, the court may grant a ...