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silver parachute

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Financial Dictionary

Silver Parachute

A form of severance that is paid to employees of a company should the company be taken over by another.

Investopedia Commentary

Like golden parachutes--which are received by the top executives in the corporation--silver parachutes include severance pay, stock options and bonuses but are offered to a larger number of employees.

See also: Golden Parachute, Shark Repellent, Takeover

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Financial Dictionary

silver parachute

An agreement for employee severance benefits in the event control of the firm changes hands. A silver parachute is less lucrative and is extended to more employees than is a golden parachute.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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