US Trustee opposes payments to CEO in airline merger

As part of the merger agreement by American Airlines and US Airways, CEO Tom Horton will receive almost $20 million in severance. Other employees will also receive severance or retention payments under the proposed merger. The United States Trustee’s office has filed an objection to the payments stating that American Airlines, and its parent company, failed to state reasons why the payments would be permissible under the United States Bankruptcy code. To be allowed, the Trustee’s office said that the payments must be part of a “program generally applicable to all full-time employees.”

For more details on this story read, “Trustee opposes American Airlines’ $20M payment to CEO Tom Horton.

Speak Your Mind


This site uses Akismet to reduce spam. Learn how your comment data is processed.