The IRC recognizes highly compensated employees and key employees but only highly compensated employees serve in executive leadership roles and participate in executive compensation and benefits plans.(Who Are Executives?)

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Both highly compensated employees and key employees can serve in executive leadership roles and participate in executive compensation and benefits plans, not just highly compensated employees. The distinction between the two categories is based on IRS definitions and criteria, not on their participation in leadership roles or compensation plans.

The IRC Recognizes Highly Compensated Employees and Key Employees but Only