tin parachute


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tin parachute

n. Slang
An employment agreement that guarantees a severance payment to employees who are dismissed after a company has had a change in ownership.

[On the model of golden parachute.]

tin′ par′achute


n.
an employment agreement guaranteeing a worker compensation, esp. in the form of bonuses and benefits, in the event of dismissal as a result of a merger or takeover.
[1985–90]
References in periodicals archive ?
Depending on the size and scope of the payout, severance packages can also be called silver or tin parachutes. Golden parachutes are generally defined as those that exceed the IRS threshold for excessive severance payments, meaning that they equal or exceed three times the recipient's average salary for the prior five years.