American Airlines CEO Denied $20M Severance Package

Law360, New York (September 16, 2013, 7:48 PM EDT) -- The judge overseeing AMR Corp.'s bankruptcy on Friday rejected a proposal to award American Airlines Inc. head Thomas Horton a nearly $20 million severance package for guiding the company through its restructuring and proposed merger with US Airways Group Inc., finding the payment was barred by law.

U.S. Bankruptcy Judge Sean H. Lane said the U.S. Bankruptcy Code clearly restricts severance payments to insiders unless they are part of a larger program generally applicable to all full-time workers and are not more than 10 times the...
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