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Key Employee Incentive Program (KEIP)

A program designed to incentivize particular performance (preferably measurable) from a specified group of employees. Chapter 11 debtors may seek approval of a KEIP (pronounced “keep”) as a means of retaining certain senior management otherwise likely to seek new employment.

KEIPs often include specific performance targets that eligible employees must meet/exceed before being paid, and may be based on specific case events, such as the consummation of a § 363 sale, or the achievement of certain financial metrics.

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