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February 14, 2013

AMR CEO Horton will receive $19.8 million cash and stock severance payment

AMR chief executive Tom Horton will receive $19.875 million in cash and stock as a severance package for shepherding the Fort Worth-based carrier through bankruptcy.

The severance package was revealed in a filing made with the Securities and Exchange Commission on Thursday afternoon.

Upon the closing of the merger, Horton will receive $9,937,500 in cash and $9,937,500 in shares of the new company's common stock. He will also receive lifetime flight and travel benefits and an office for a period of two years after the merger.

The filing said he will serve as chairman of the new company until either one year after the closing of the merger or the day prior to the first annual meeting of stockholders, whichever comes first. It notes that the stockholder meeting cannot be held prior to May 1, 2014.

-Andrea Ahles

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Comments

AMR Employee

I suppose now that he has screwed over the rank and file employees here he will now go join Virgin America... The team of Carty and Horton can then put the screw to those employees.

whitey

maybe he will get mugged on the way to the bank.that will make my day.

Dieter

After laying off thousands of employees, AA's senior management team fought tooth and nail to retain their own positions. And when they failed to do so, negotiated obscene golden parachutes for themselves. Absolutely sickening.

Patrick

As someone who supported management throughout this entire process, I am disgusted to see that Horton gets to leave with $9M in cash. That is really unfortunate, when they extort $30 from every poor slob who checks a bag. It is not right.

Steve

It is the same old story. A management thats runs a company into the ground. Makes huge cuts on its employees, asks that them to understand. Saying that is what is needed to stay in business to survive.That a severance of milions is given to the CEO.If I botch my job I am fired not rewarded. I am disgusted as well. It was said in a song long ago "meet the new boss, same as the old boss".

Vortilon

Yeah, all things considered anybody could have done what Horton did. It's not like any of his skills or talent did anything positive for the company. The employees couldn't get rid of him fast enough. Horton is no Herb Kelleher. Looks like he was brought in to be the fall guy for $20 million.

Havehope

good riddance to all of them !!

Johnny

Tom Horton is a crook. Horton ran AT&T into the ground and made the wireless company last in customer rankings.
Horton ran away from AMR after 9-11. Then when things look better (and AT&T sinks) Horton comes back to AMR.
Corporate compensation must change in the USA.

Greg

Shame to see AA employees sacrifice again, only to have management (also, once again) ride off with a huge payday.

SawThisComing

Thousands lost their livelihood, their careers, after years of dedicated service and loyalty. They are now on the street collecting unemployment, probably scraping by. And this guy gets to sleep on a hefty cushion. I wish the federal government would put a stop to this nonsense. It's downright robbery.

CeoCrookWannaBe

You wish the federal govt would put a stop to this?????????? The federal govt is the one that supports and endorses this you MORON................Every whines about this but nobody wants to do anything about it.............Oh too bad for all the bootlicking employees.......Just take another bite off that management sandwich they been passin around for the last 14 years.Swallow it and shut up

Lenski

A classic example of the disparity between the 2% and the rest of us. The Amr board of directors thought Mr. Hortons compensation was fair and appropriate. If there is anyone out there still wondering why Pres.Obama was re-elected, this is one big reason. It's time for us Americans to hold our congressional leaders accountable for these blatent displays of excess when there are so many people hurting out there. But no, we shouldn't tax the wealthy its bad for the economy and "job creators". I can only imagine what the rest of the top tier executives compensation will look like.... at the cost of so many jobs.....

Al Cenci

As a "blue collar" aircraft mechanic for thirty five years with one of America's premier airlines, all I can say is, it read's like a movie script.
We(employees) are sacrificed at the
expense of the top ten percenter's who,
like the wall street criminal counterpart's, take the money and run. Think about how many job's could be saved if it weren't for the greed and
for the total compensation packages of the CEO,CO,and CFO.

RPMARTIN

Disgusting!

1offive

Horton get's to screw the AA employees once again! Sickening, I think I just threw up some in my mouth!!!!!

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