Feds Reject Airline CEO’s Severance Deal
(NEW YORK) -- Too darn high! That’s the unofficial reaction to a sweet severance deal for the CEO of American Airlines.
The proposed merger of American and US Airways Group calls for CEO Tom Horton to lose that job and become chairman of the new company. US Airways boss Doug Parker would run the carrier. American has proposed severance pay of almost $20 million, along with lifetime flight benefits.
The objection filed by the U.S. Trustee’s office says American’s bankruptcy plan does not explain why Horton should get so much money. The objection says Horton’s contract calls for him to get $6.4 million if he had left at the end of last year, and raises the question of why he should get so much more money now.
The case will be decided by a federal bankruptcy court in New York.
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