Subscribe Now

travelers today

Home » News

Tom Horton's Severance Package: American Airlines' CEO To Receive $20 Million Upon Completion of US Airways' Merger

Travelers Today       By    Antranig Dereyan

Updated: Feb 19, 2013 02:12 PM EST

Text Size: A A A

American Airlines Chairman, President and CEO Tom Horton
American Airlines Chairman, President and CEO Tom Horton announces the planned merger of AMR Corp, the parent of American Airlines, with U.S. Airways in an $11 billion all-stock deal at Dallas-Ft Worth International Airport, February 14, 2013.(Photo : Reuters)

It was already confirmed a week ago that if the $11 billion merger between US Airways and American Airlines is approved by AMR's bankruptcy judge, U.S. antitrust regulators and shareholders late Sept. 2013, that current AA CEO Tom Horton would not be retained.

That being said, no one should feel bad for him because as USA Today reports, Horton's "going-away prize" will be a severance package of "nearly $20 million."

He will get $9.94 million in cash and an equal amount in stock in the new company after the merger. He'll also get an office and office help for two years, and lifetime flight and travel benefits, according to USA Today.

Share This Story

Horton, 51, joined American in 1985, jumped to AT&T for four years in the 2000s, then returned to the airline and became CEO the day before it filed for bankruptcy protection in November 2011, reported USA Today.

AMR said in the filing that its board, of which Horton is chairman, approved the severance package as "reasonable and appropriate" because of his long service at the company, the success of the restructuring "and the value created for the company's financial stakeholders" according to USA Today.

Again, assuming that the merger is approved, Horton would serve as AA chairman until about mid-2014 and then leave the board. He hasn't said what his plans are after that.

Helane Becker, an analyst with Dahlman Rose & Co., said Horton would be a good candidate to lead an airline or a company in another industry, reported USA Today.

U.S. Airways CEO Doug Parker (L) and American Airlines Chairman, President and CEO Tom Horton announce the planned merger of AMR Corp, the parent of American Airlines, with U.S. Airways at Dallas-Ft Worth International Airport,
U.S. Airways CEO Doug Parker (L) and American Airlines Chairman, President and CEO Tom Horton announce the planned merger of AMR Corp, the parent of American Airlines, with U.S. Airways at Dallas-Ft Worth International Airport,

"Doug Parker (current CEO of US Airways and will-be successor to Horton) has gotten all the attention, but Tom (Horton) has quietly done a good job" leading AMR through bankruptcy, she said "Whatever company gets him will be lucky. He's smart, he works hard, he's energetic," stated USA Today.

© 2014 Traverlers Today, All rights reserved. Do not reproduce without permission.
Join Our Conversation

ADVERTISEMENT

Travel Tips

Prince Edward Island, Canada

Fall Cruises: Better Than Land Tours? It Gives Guests ‘A European Experience Without Leaving North America’

Fall cruises for foliage in the northeast are now becoming more and more popular as each year goes by. The foliage that is part of the tour is unlike any other place in the country. In fact, more guests are even paying good money to cruise the rivers, as well as the oceans, in order to peep leaves instead of having to brave today’s highly crowded roads and hotels on land.

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Want more Travel?

Most Popular

CDC is rethinking of their approach towards the Ebola virus while staying positive that the virus can be transmitted through direct contact. New rumors suggest that the virus is airborne after two Dallas nurses became infected despite of wearing their pro

CDC To Modify Approach in Ebola Infection As Virus Becomes Airborne

Centers for Disease Control and Prevention (CDC) of the U.S. is trying to reconsider its approach to Ebola patients after several reports suggest that the fatal virus could be airborne.

California Drought Map

California Drought Map Reveals 58% Of State Suffers Deficiency Of Water Supply Amid Imminent Winter Season

California's drought map still shows an alarming phenomenon at the Golden State wherein 58% of the area is suffering from deficiency of water supply, be it atmospheric, surface or ground water.

Daniela Poggiali

Nurse Kills 38 Patients Because She Got Annoyed; Co-Workers Say Italian Nurse Daniela Poggiali Is 'Cynical And Vindictive'

Nurse Kills 38 Patients - Italian nurse Daniela Poggiali is one healthcare professional you should be wary of if ever you get confined in a hospital in Italy. For one thing, she is notorious for killing up to 38 patients after she got completely annoyed of them or of their families.

Cattle Return From Alpine Summer Grazing

World's Tallest Cattle Found In Illinois, How Tall Is Blosom The Cow?

World’s tallest cattle is found in Illinois. Owned by Patty Hanson, Blosom the cow has been named Guinness World Records’ tallest cow. How big and tall exactly is Blosom?

Grizzly Bear

Man, 56, Attacked By Bear Shot Accidentally By Hunting Partner Who Tried To Save Him From The Beast

A man attacked by bear was shot by his friend while the latter was attempting to spare him from the brutal attack of the beast.

Debris field spotted on radar at time of the Louisiana loud boom

Louisiana Loud Boom: Mysterious ‘Sonic Boom’ In The Sky Rattles Residents, ‘Debris Field’ Spotted, What Is The ArkLaTex ‘Boom’?

The Louisiana loud boom which was heard and rattled many north eastern Louisiana residents is as of this moment still left unexplained. However, now the National Weather Service has added that whatever the cause of the Louisiana loud boom, it has left a debris field.

Illness Observation

Ebola Airborne CDC: Widespread Outbreak Possible, More Contagious Virus Than Thought

The Executive director of the Association of American Physicians and Surgeons, Dr. Jane Orient, claimed the world is dealing a different kind of Ebola virus, one which is more potent and can be transmitted in air via droplets.

Brazil is currently treating and monitoring its first suspected case of Ebola. A 47 year-old man from Guinea reportedly manifest fever withing the 21 day-incubation period of the virus.

Brazil Confirms First Suspected Ebola Case

Brazil treats its first ever suspected case of Ebola while waiting for the results of a blood test which is due to be released on Saturday.

Ebola Press Conference Boston Logan Airport

Ebola In Boston: Two Ebola Mass. Scares Raises Fears Despite Braintree Patient Declared Not At Risk, What Is The Different Types Of Ebola Risks?

Fears over Ebola in Boston have heightened after two Massachusetts scares flared up over the Columbus Day weekend. Raised concerns over Ebola in Boston have since prompted holiday press conferences and reverse 911 calls to reassure the public.

American Airlines jet landing at DCA

American Airlines Flight Depressurized Due To Cracks In Cabin Walls; Plane Had Emergency Landing

American Airlines had to have an emergency landing after its cabin walls started to break apart as its passengers, absolutely terrified, had no choice but to look on and shout for help. One of the passengers, James Wilson, said that he felt something was wrong when the fuselage started to shake violently and heard some popping noises outside the plane.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics