Silver Parachutes

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 Parachute

A clause in a hiring contract describing a relatively lucrative severance package once an employee leaves a company, especially after a merger or acquisition. Such a package often includes cash and stock options, as well equity in the company. A silver parachute is not normally as large as a golden parachute, but a greater number of employees are eligible for one.
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Even less common than gold or silver parachutes are tin parachutes--severance plans that cover all of the employees of a company in the event it undergoes a change in control.