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Silver Parachutes

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Silver Parachutes
These provisions are similar to Golden Parachutes in that they provide severance payments upon a change in corporate control, but unlike Golden Parachutes, a large number of a firm's employees are eligible for these benefits.

Silver Parachutes
Clauses in hiring contracts describing relatively lucrative severance packages once employees leave a company, especially after a merger or acquisition. These packages often include cash and stock options, as well equity in the company. They are not normally as large as golden parachutes, but a greater number of employees are eligible for them.


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