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tin parachute

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tin parachute
An employee-protection plan that guarantees severance pay, outplacement assistance, and health and life insurance benefits to all employees who lose their jobs because of a corporate takeover. A generous tin parachute serves to make a takeover more expensive and less likely.


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The value of a tin parachute will vary significantly from company to company, says Siske, but will typically provide a severance payment linked to the recipients' years of service and/or their age, often with a cap, such as 1.
 
 
 
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