What is a Key Employee?

A key employee is defined as a salaried employee who is among the highest-paid 10 percent of all workers employed by the employer.

What is a Key Employee?

A key employee is an individual who is considered essential to the success of an organization. The exact definition of a key employee may vary depending on the context and the organization, but typically, a key employee is someone who has specialized skills, knowledge, or experience that are critical to the organization's operations or strategic objectives.

In the context of employee benefits and compensation, key employees may be defined more specifically as those who occupy executive or management positions, or those who are highly compensated. Key employees may also include individuals who have ownership or control over the organization, such as major shareholders or board members.

In many cases, organizations will develop specific compensation and benefits packages for their key employees in order to retain their talent and ensure their continued contributions to the organization. These packages may include things like higher salaries, bonuses, stock options, and other perks or incentives.

It's important to note that the designation of a key employee is not simply a matter of job title or salary level, but is rather based on an assessment of the individual's contributions and value to the organization.