American Airlines says CEO's severance deal is legal

Mar 22, 2013 | Posted by: roboblogger | Full story: Star-Telegram.com

American Airlines said Friday that a $19.8 million severance package negotiated for CEO Tom Horton is legal despite objections from the trustee that it doesn't conform to U.S. bankruptcy law.

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1 - 8 of 8 Comments Last updated Mar 26, 2013

Since: May 08

Santee CA

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#1
Mar 23, 2013
 
Of course it's legal, but is it ethical? AA doesn't care. That's why the BOD kicked out I won't go BK Arpey and replaced him with Horton.
steve

Blacksburg, VA

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#2
Mar 24, 2013
 
All those severance deals for ceo's are legal. Remember Dave Siegal at Usairways? He left with 4.5 million after being an utter failure and only after saying he was staying with the company for the long haul in an employee video and then a few days before his severance was about to expire, he bailed.
At least Tom Horton did accomplish something in bringing labor agreements and having a plan to grow the airline. Still 20 million is way too much but the top brass always look after each other.

Since: May 08

Santee CA

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#3
Mar 24, 2013
 
steve wrote:
All those severance deals for ceo's are legal. Remember Dave Siegal at Usairways? He left with 4.5 million after being an utter failure and only after saying he was staying with the company for the long haul in an employee video and then a few days before his severance was about to expire, he bailed.
At least Tom Horton did accomplish something in bringing labor agreements and having a plan to grow the airline. Still 20 million is way too much but the top brass always look after each other.
The Horton built on was what American was planning long before his coup d'etat... He fought the merger...The Airbus and Boeing family planes were already on order...The labor agreements came because he asked the court for everything and the unions had to tell thier employees take a deal that sucks a little instead of alot....Horton was brought in by the BOD to take over and he knew he'd be a very rich man when it was over. That's how American labor laws and courts work
AAmgt

Fayetteville, GA

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#4
Mar 25, 2013
 
He's worth it, and although mine is smaller, I'm worth every penny.
troy

Williamsburg, VA

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#5
Mar 26, 2013
 

Judged:

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you always think you're worth it. fortunately for the hardworking employees at American Airlines, those who actually sacrificed, who actually take pride in the company, who don't look at the individual gain exclusively, who desire to see American Airlines succeed in a long term....we humbly sit back and watch...taking note of those who applaud his efforts of the past year all over looking the failures the past 10 years he was part of American Airlines management

Since: May 08

Santee CA

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#6
Mar 26, 2013
 
troy wrote:
you always think you're worth it. fortunately for the hardworking employees at American Airlines, those who actually sacrificed, who actually take pride in the company, who don't look at the individual gain exclusively, who desire to see American Airlines succeed in a long term....we humbly sit back and watch...taking note of those who applaud his efforts of the past year all over looking the failures the past 10 years he was part of American Airlines management
We the employees of AA have succeeded in spite of executive management.. I welcome the changes in the merger and look forward to working for a #1 airline once again... Although I have never recovered cost of living wise from the 2003 cuts and now am suffering further, there will be gain....
AA Management

Phoenix, AZ

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#7
Mar 26, 2013
 

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You little people need to understand that the people in management are of a higher caliper than you, have a higher level of education than you, and are entitled to bonusus and stock options and golden parachutes that we have become accustomed too.

Do you little people realize how expensive it is to live in a 14 million dollar home. And pay the house staff the wages and benifits they demand.

Do you little people realize how hard it is on my house staff members to mow the estate lawn in Dallas during the summer months.

Someone has to pay these people minimum wage.

Since: May 08

Santee CA

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#8
Mar 26, 2013
 

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AA Management wrote:
You little people need to understand that the people in management are of a higher caliper than you, have a higher level of education than you, and are entitled to bonusus and stock options and golden parachutes that we have become accustomed too.
Do you little people realize how expensive it is to live in a 14 million dollar home. And pay the house staff the wages and benifits they demand.
Do you little people realize how hard it is on my house staff members to mow the estate lawn in Dallas during the summer months.
Someone has to pay these people minimum wage.
Ah, the pot stirrer who I doubt even flies American let alone work as a manager for them. You never even post from TX.. Oh and while I doubt you had a need for such knowledge in your fancy college.. It's caliBer as in barrel size, not caliPer as in tool used for fine measures. You do amuse me though, I'll give you that.

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