For a debtor in financial distress, having the right team in place to steward the company through a restructuring can mean the difference between success and failure. To incentivize top talent to stay with the debtor and continue to perform through a Chapter 11 case, debtors may implement one or more so-called “key employee retention plans” (KERPs) or “key employee incentive plans” (KEIPs).

This article will discuss the key issues, and differences, of KEIPs and KERPs. To access this article and read other insights from our Creditor’s Rights Toolkit, please click here.