Join The Discussion

 

North Tarrant Express completion date moved up to October

Fort Worth-area commuters can expect the 13.3-mile North Tarrant Express to open in full operation in October, eight months ahead of the original schedule.

read more >

Left Bank project hits roadblocks on access, traffic

Questions about fire access and traffic are bogging down talks on an economic incentive agreement for the planned, $300 million Left Bank development on the Trinity River at West Seventh Street, Fort Worth officials and the developer acknowledge.

read more >

TCU's Neeley School receives $30M donation as part of planned expansion

A $30 million foundation gift to Texas Christian University will help guide a $100 million facility expansion for the Neeley School of Business.

read more >

Mixed-use complex at Fort Worth TRE parking lot could cost $60 million

A design panel proposes two buildings on Trinity Railway Express lot on Near Southside, with a mix of apartments, retail, office and parking, and frontage on West Vickery and views across I-30 and overlooking downtown.

read more >

UPS adding Alliance, McKinney locations and 500 area jobs

UPS said Aug. 21 it will add two new package distribution facilities in the Dallas-Fort Worth area

read more >

 

Judge denies $20M severance deal for AMR CEO

.

DAVID KOENIG,AP Airlines Writer

DALLAS (AP) — A federal bankruptcy judge has denied a proposed $20 million severance payment for the CEO of American Airlines as part of the company's merger with US Airways.

The judge ruled Thursday that the proposed payment to CEO Tom Horton exceeded limits that Congress set for bankruptcy cases in 2005.

The U.S. trustee's office, part of the Department of Justice, had objected to Horton's compensation. Judge Sean Lane declined to approve the payment during a hearing on March 28, but he didn't issue a ruling until Thursday.

Although Lane denied the severance as part of the merger, he left open the possibility of a payment as part of American's final reorganization plan, which has not yet been filed. American Airlines spokesman Mike Trevino said the airline intends to address Horton's compensation that way.

Lane has approved the plan for American Airlines parent AMR Corp. to merge with US Airways Group Inc. in a deal that would create the world's largest airline. The merger is being reviewed by U.S. antitrust regulators.

Under the merger deal, the new company will be called American Airlines but run by US Airways CEO Doug Parker. Horton would serve as chairman for a few months and then leave with a severance of $19.875 million equally divided between cash and stock.

The trustee's office argued that severance payments to insiders such as CEOs can't be more than 10 times the average severance pay for non-management employees.

AMR argued that the limit didn't apply because the payment would be made by the new company formed after AMR emerges from bankruptcy protection.

But Lane called that argument "somewhat of a legal fiction" because the money was Horton's reward for his work at AMR, not at the new company, which will be called American Airlines Group Inc.

AMR also argued that Horton's payoff was similar to payments made to CEOs in other airline mergers. But Lane said the earlier deals — Delta's purchase of Northwest and United's merger with Continental — didn't occur under bankruptcy and its limits on insider severance payments.

 

< back

Email   email
hide
Arena
What do you think of the new plans for a new Will Rogers arena and changes at the Convention Center?