Key Employee Retention under BAPCPA

Given that the raison d'etre of KERPs was to retain top management, it is perhaps ironic that debtors now must show that a compensation plan is not retentive ' or at least that retention is not its primary purpose ' in order to obtain bankruptcy court approval. This article offers a complete explanation and analysis.

12 minute read January 29, 2008 at 07:12 AM
By
Douglas P. Bartner And Lynette C. Kelly
Key Employee Retention under BAPCPA

In 2005, Congress purported to address the hot-button issue of executive compensation in bankruptcy by severely limiting Key Employee Retention Programs ('KERPs') that were then common in reorganization cases.

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