AMR Corp. CEO Tom Horton's nearly $20 million severance is under fire from U.S. Trustee Tracy Hope Davis in the company's bankruptcy proceedings and pending merger with US Airways.
Davis, the U.S. Trustee for Region 2, questioned the planned payout of $9,937,500 in cash and $9,937,500 in stock, asking why a severance of such size was needed for Horton to leave AMR, parent of American Airlines.
The trustee is objecting on grounds that federal law prohibits large severances and bonuses during bankruptcy proceedings.
"A severance payment of close to $20 million defeats Congress' intent in enacting" the bankruptcy law, the trustee's filing states. Full story...
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Davis, the U.S. Trustee for Region 2, questioned the planned payout of $9,937,500 in cash and $9,937,500 in stock, asking why a severance of such size was needed for Horton to leave AMR, parent of American Airlines.
The trustee is objecting on grounds that federal law prohibits large severances and bonuses during bankruptcy proceedings.
"A severance payment of close to $20 million defeats Congress' intent in enacting" the bankruptcy law, the trustee's filing states. Full story...
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