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Judge denies $20M severance deal for AMR CEO

American Airlines CEO Tom Horton - AP

A federal bankruptcy judge has at least temporarily blocked a proposed $20 million severance payment for the CEO of American Airlines as part of the company's merger with US Airways. The judge ruled Thursday that the proposed payment to CEO Tom Horton exceeded limits that Congress set for bankruptcy cases in 2005.

 

American's $19.8 million CEO severance draws fire

Tom Horton

The subject of CEO compensation looks like it will get time under the microscope in American Airlines' Chapter 11 bankruptcy case. The U.S. trustee overseeing the bankruptcy case of American parent AMR has filed an objection to the $19.8 million severance package that current CEO Tom Horton is set to get when he leaves the company next year, according to Reuters. Also included in the objection are severance and retention payments slated for other company employees.

 

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