tin parachute

tin parachute definition - business

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.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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