The U.S. Bankruptcy Court approved Republic Airways Holdings’ motion for entry of an order approving the Debtors’ key employee incentive plan (KEIP) and key employee retention plan (KERP) and granting related relief.
As previously reported, “The KEIP is focused on incentivizing the six-member Executive Leadership Team, each member of which possesses significant knowledge of the airline industry and Republic’s business and drives the high-level operations that dictate Republic’s financial performance….The total cost of the KEIP for 2016 is approximately $390,609 each quarter at threshold payment levels, $781,220 each quarter at target payment levels, and $1.56 million each quarter at maximum payment levels.”
The motion continues, “Absent the KERP, Republic’s ability to retain its key talent will be highly challenging given the uncertainties its employees face in light of these chapter 11 cases and the planned consolidation of Republic’s operations into a single operating certificate….The total maximum cost of the KERP is approximately $2.3 million, which represents approximately 0.19 percent of Republic’s revenue.”
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