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  <TITLE> Keithley Instruments, Inc. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	September 25, 2007
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  	Keithley Instruments, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Ohio
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  	1-9965
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  	34-0794417
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	28775 Aurora Road, Solon, Ohio
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  	44139
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
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  	Registrant&#146;s telephone number, including area code:
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  	(440) 248-0400
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
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  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  <B>
  	Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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  (e)  On September 25, 2007, the Compensation and Human Resources Committee of the Board of Directors of Keithley Instruments, Inc. (the "Company") adopted the Keithley Instruments, Inc. Annual Incentive Compensation Plan (the "Plan"). The Plan objective is to provide an opportunity to those employees whose performance has a significant impact on the Company's short-term and long-term profitability to earn annual incentive compensation based on such profitability. The Plan will be administered by the Committee. The Committee designates participants in the Plan who are officers of the Company and reviews and approves the annual performance criteria. The Committee has the authority to amend, modify, or discontinue the Plan.<br><br>A target incentive percentage for each participant will be established at the beginning of each award term, which  coincides with the Company&#x2019;s fiscal year of October 1 through September 30. Individual target incentive compensation will be calculated at the end of the award term based on performance as compared to the prestablished criteria. Individual incentive compensation may then be further modified based on a participant's individual performance and contributions for the term by up to 25% either plus or minus of target payout. If a participant&#x2019;s performance during the award term is determined to be unsatisfactory, the Committee reserves the right to reduce the participant&#x2019;s award for the award term to zero. Individual incentive compensation awards may not exceed three (3) times the target incentive award.<br><br>The performance targets for the award term beginning October 1, 2007 and ending September 30, 2008 are as follows:<br><br>Metric	          <br><br>Return on Assets:<br>Threshold - 19%<br>Target - 34%<br>Individual Maximum Attained at (1) - ~40-45%<br><br>Sales Growth:<br>Threshold - 1%<br>Target - 14%<br>Individual Maximum Attained at (1) - ~28%<br><br>(1) The Plan does not cap the performance measures but rather caps an individual&#x2019;s payout at 3 times target incentive award. The number provided in this column approximates the level at which maximum payout would be capped and is a range because of the interplay between the two measures.<br>
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	Keithley Instruments, Inc.
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  	&nbsp;&nbsp;
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  <I>
  	October 1, 2007
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  	&nbsp;
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  	By:
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  <I>
  	Mark J. Plush
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  	&nbsp;
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  <I>
  	Name: Mark J. Plush
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  <I>
  	Title: Vice President and Chief Financial Officer
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  	Exhibit&nbsp;Index
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  	Exhibit No.
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  	Description
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  	10.01
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  	&nbsp;
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  Keithley Instruments, Inc. Annual Incentive Compensation Plan
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_22933.htm", "description": "LIVE FILING", "secsgml_size_bytes": 11809}]
metadata_filer: {"company-data": {"conformed-name": "KEITHLEY INSTRUMENTS INC", "cik": "0000054991", "assigned-sic": "3825", "irs-number": "340794417", "state-of-incorporation": "OH", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09965", "film-number": "071146398"}, "business-address": {"street1": "28775 AURORA RD", "city": "SOLON", "state": "OH", "zip": "44139", "phone": "2162480400"}}
text: Keithley Instruments, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  September 25, 2007
  Keithley Instruments, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Ohio
  1-9965
  34-0794417
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  28775 Aurora Road, Solon, Ohio
  44139
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  (440) 248-0400
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
  (e)  On September 25, 2007, the Compensation and Human Resources Committee of the Board of Directors of Keithley Instruments, Inc. (the "Company") adopted the Keithley Instruments, Inc. Annual Incentive Compensation Plan (the "Plan"). The Plan objective is to provide an opportunity to those employees whose performance has a significant impact on the Company's short-term and long-term profitability to earn annual incentive compensation based on such profitability. The Plan will be administered by the Committee. The Committee designates participants in the Plan who are officers of the Company and reviews and approves the annual performance criteria. The Committee has the authority to amend, modify, or discontinue the Plan.
  A target incentive percentage for each participant will be established at the beginning of each award term, which  coincides with the Company's fiscal year of October 1 through September 30. Individual target incentive compensation will be calculated at the end of the award term based on performance as compared to the prestablished criteria. Individual incentive compensation may then be further modified based on a participant's individual performance and contributions for the term by up to 25% either plus or minus of target payout. If a participant's performance during the award term is determined to be unsatisfactory, the Committee reserves the right to reduce the participant's award for the award term to zero. Individual incentive compensation awards may not exceed three (3) times the target incentive award.
  The performance targets for the award term beginning October 1, 2007 and ending September 30, 2008 are as follows:
  Metric
  Return on Assets:
  Threshold - 19%
  Target - 34%
  Individual Maximum Attained at (1) - ~40-45%
  Sales Growth:
  Threshold - 1%
  Target - 14%
  Individual Maximum Attained at (1) - ~28%
  (1) The Plan does not cap the performance measures but rather caps an individual's payout at 3 times target incentive award. The number provided in this column approximates the level at which maximum payout would be capped and is a range because of the interplay between the two measures.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Keithley Instruments, Inc.
  October 1, 2007
  By:
  Mark J. Plush
  Name: Mark J. Plush
  Title: Vice President and Chief Financial Officer
  Top of the Form
  Exhibit Index
  Exhibit No.
  Description
  10.01
  Keithley Instruments, Inc. Annual Incentive Compensation Plan