AMR chief Tom Horton's severance to total nearly $20M

There are 10 comments on the Feb 15, 2013, Business Journal story titled AMR chief Tom Horton's severance to total nearly $20M. In it, Business Journal reports that:

Tom Horton , the chairman and CEO of AMR Corp. and American Airlines, will get a $19.87 million severance payment when the company completes its merger with US Airways Group Inc., the Dallas Business Journal reports .

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Since: May 08

Santee CA

#1 Feb 15, 2013
Nice... About a million a month since he came back as CFO... He has to hang around in a secondary role for another year while he sends out his resume' on compan time. Still some lovely parting gifts.. Not to mention lifetime first class travel.. That makes the famiy vacation much easier. That's right Mr/Ms Million mile flyer.. You want to upgrade... No before Tom gets on. For that matter Crandall, Carty, Arpey... Any current execs et.al. The list is actually quite long
vietnam vet

Raleigh, NC

#2 Feb 15, 2013
As a career AA employee, I am unaware of any decision or strategy that Mr.Horton can claim to have had that made the airline more efficient, profitable, etc. Bankruptcy is not a strategy, it is an admission that you don't have a strategy. But this is America, executives can make themselves wealthy simply by just putting the blame on mployees.

Since: May 08

Santee CA

#3 Feb 15, 2013
vietnam vet wrote:
As a career AA employee, I am unaware of any decision or strategy that Mr.Horton can claim to have had that made the airline more efficient, profitable, etc. Bankruptcy is not a strategy, it is an admission that you don't have a strategy. But this is America, executives can make themselves wealthy simply by just putting the blame on mployees.
Well said.... AA actually admitted to having a "get by stategy"... It wanted to get another round of concessions from employees hoping for a miracle in 6 years...If not, then go BK.... This is the kind of plan the AA BOD allowed.... Good riddance to the lot.. When you've gone from 1st to worst it can only get better.
Flyer

Arlington, TX

#4 Feb 15, 2013
vietnam vet wrote:
As a career AA employee, I am unaware of any decision or strategy that Mr.Horton can claim to have had that made the airline more efficient, profitable, etc. Bankruptcy is not a strategy, it is an admission that you don't have a strategy. But this is America, executives can make themselves wealthy simply by just putting the blame on mployees.
He dramatically lowered cost, got work rules written that will actually allow the airline to fly routes it needs to fly and if you think taking a company into bankruptcy and getting it through bankruptcy is easy, then you have no clue. AA did not go into bankruptcy because of Horton. It went in because of fuel costs, old planes, terrible Union work rules and because of the costs of frontline Union employee costs.
AA, even after the merger will have a lot of things still to fix. New planes can't get here fast enough, AA still has too many Mechanics compared to any other airline in the world, some work rules, especially for Pilots are sill out of whack and AA after the merger will have the two worst airline Unions under one roof: The AA Pilots and the Old US Air Pilots who are still broken into the groups of the three airlines put together to create the Old USAir....
And the new AA still has a huge hole in its network called China. Only the country with the most people and the fastest growth sector in aviation!

Since: May 08

Santee CA

#5 Feb 15, 2013
Flyer wrote:
<quoted text>
He dramatically lowered cost, got work rules written that will actually allow the airline to fly routes it needs to fly and if you think taking a company into bankruptcy and getting it through bankruptcy is easy, then you have no clue. AA did not go into bankruptcy because of Horton. It went in because of fuel costs, old planes, terrible Union work rules and because of the costs of frontline Union employee costs.
AA, even after the merger will have a lot of things still to fix. New planes can't get here fast enough, AA still has too many Mechanics compared to any other airline in the world, some work rules, especially for Pilots are sill out of whack and AA after the merger will have the two worst airline Unions under one roof: The AA Pilots and the Old US Air Pilots who are still broken into the groups of the three airlines put together to create the Old USAir....
And the new AA still has a huge hole in its network called China. Only the country with the most people and the fastest growth sector in aviation!
Explain why the day Horton became CEO AMR went BK... It was a coup d'etat orchestrated by a BOD tired of waiting for the only airline in the industry to lose money when others made profit to join the club. BK, especially in Manhattan District 2 is very company friendly... Unless Horton went thru all the books himself to determine cuts I'm not impressed. You ask for everything and settle for what you really want.. Like bartering for a pair of boots in Mexico... If you believe how great he is, let me tell you how I restructed my life after taking a S15,000 a year pay cut in 2003 and didn't go BK.
dirtydog

Sandy, TX

#6 Feb 15, 2013
Prost wrote:
<quoted text>Explain why the day Horton became CEO AMR went BK... It was a coup d'etat orchestrated by a BOD tired of waiting for the only airline in the industry to lose money when others made profit to join the club. BK, especially in Manhattan District 2 is very company friendly... Unless Horton went thru all the books himself to determine cuts I'm not impressed. You ask for everything and settle for what you really want.. Like bartering for a pair of boots in Mexico... If you believe how great he is, let me tell you how I restructed my life after taking a S15,000 a year pay cut in 2003 and didn't go BK.
Well said Prost, I cannot wait for the day, coming very soon, when Flyer, and everyone else, will have to pay for a ticket should really cost. The airplane will not be the only thing going up now that deregulation has almost finished running it's course, eliminating the competition it was suppose to enhance.
Flyer

United States

#7 Feb 16, 2013
Prost wrote:
<quoted text>Explain why the day Horton became CEO AMR went BK... It was a coup d'etat orchestrated by a BOD tired of waiting for the only airline in the industry to lose money when others made profit to join the club. BK, especially in Manhattan District 2 is very company friendly... Unless Horton went thru all the books himself to determine cuts I'm not impressed. You ask for everything and settle for what you really want.. Like bartering for a pair of boots in Mexico... If you believe how great he is, let me tell you how I restructed my life after taking a S15,000 a year pay cut in 2003 and didn't go BK.
You may not be impressed but the shareholders, bondholders and others with financial accused were impressed enough to pay him $18 million. Scoreboard!
As far as you being overpaid for a time, good for you! Hope you save a few of those bucks.

Since: Apr 08

Tulsa, OK

#8 Feb 16, 2013
Flyer wrote:
<quoted text>
You may not be impressed but the shareholders, bondholders and others with financial accused were impressed enough to pay him $18 million. Scoreboard!
As far as you being overpaid for a time, good for you! Hope you save a few of those bucks.
Flyer, sometimes I totally agree with PROST and then one has to wonder if he knows anything about big business. Investors want a return on their investment. How a company goes about getting it is up to the executives running that company. When they fail, then something has to be done to protect that money and get it back, hopefully with no losses and maybe some interest.

#1. When an executive comes into to a failing company and demonstrates and performs their expertise to get the company into a situation where it can be sold off at a profit or get its business back in order to become profitable there is always a large pot of gold at the end of the rainbow. No surprise here about his severance (bonus) pay. We all knew it was coming, so no bellyaching about it, please. As you well know there are a lot of groups that do that for a business. Did you ever hear about Bain Capital?

#2 Did it ever occur to you that Arpey, a nice guy who attempted to sweet talk the employees into labor deals that would keep the airline alive was taking too long and getting nowhere. Time to push him aside and get someone with balls to get the employees to come around or else. How could one forget the September slowdown. Apparently the pilots left their big boy pants at home and were determined to show Horton who the boss was here. No different than what Crandall would have done. I remember when we trained to go out to the field stations in the early 80’s and keep the planes flying when Crandall was going to shut out the unions, except for the pilots, that were playing hardball, until they decided to negotiate with him. And then again the same happened with the Flight Attendants, except some of them decided to walkout and they were temporarily replaced by staff employees. The Flight Attendants negotiated as well. Crandall recently said in an interview that if it were he, he would have filed bankruptcy a long time ago and restructured the airline, http://www.charlierose.com/view/interview/122...
So here we are, the unions again don’t agree with the management and Horton, the hell with them and the same old rhetoric. We are going to negotiate with Parker, our guardian angel, who is going to make us all happy again and give us whatever we want.
3# The NEW American is formed, except we still have the old and new misaligned pieces in the massive jigsaw puzzle that the new management team has to put together, labor groups that all have to sing and dance to the same tune and work with the new management team……….Let us prove that we are adults and will make this thing work!! If not, then Parker too, will be getting his big severance payout in a few years when the New American is sold off and the unions will be crying, Foul, again.

Since: May 08

Santee CA

#9 Feb 16, 2013
Flyer wrote:
<quoted text>
You may not be impressed but the shareholders, bondholders and others with financial accused were impressed enough to pay him $18 million. Scoreboard!
As far as you being overpaid for a time, good for you! Hope you save a few of those bucks.
They were so impressed they gave him his release.... Look at the CEO's that didn't get control of the new entity. They all walk away multimillionaires...My only regret is not being getting a job where failure made me very wealthy.
steve

Rocky Mount, VA

#10 Feb 17, 2013
Now comes the time when Parkers promises will show what truth they have behind them. Why do most feel that new management is always the answer? The airline business is very volatile and those who yearn for the good old days to return are in a fairy tale world.
Parker is a good politician, they all make promises they know they cannot keep but that does not stop those who want a change so bad to hang onto every word as if somehow this time it will be different, and the illusion of a bright future will come to pass.
As far as big pay offs to departing management, it happens along all types of companies. Remember Dave Siegal at US, a total flop and a job not well done earned him 4.5 million. Its the corporate American way of doing business and that will never change.
I hope the Phoenix management team will not turn AA into just a larger version of US. Nickel and diming the customer and mistreating employees. The AA brand is still one of the most recognized carriers in the world and it remains to be seen if that can be built upon which will benefit all involved, customers and employees.
I wish the best for the employees and customers, the two most important parts of any company.

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