U.S. Official Opposes Payment To AMR CEO
Follow the action on Twitter by using the widget on the righthand side of this page.
DALLAS (AP) – A federal official opposes a nearly $20 million severance payment to the CEO of the parent of American Airlines in the proposed merger with US Airways.
The U.S. trustee says Fort Worth-based American and AMR Corp. failed to explain how severance and retention payments for management employees are allowed under a 2005 change in the bankruptcy laws.
Tracy Hope Davis with the Justice Department lodged her objections Friday.
AMR spokesman Andrew Backover says greements in the merger reasonably and appropriately compensate employees and are in line with industry precedents.
A bankruptcy judge has scheduled a March 27 hearing to consider the merger proposal. The combined company would keep the American name but be run by US Airways CEO Doug Parker.
(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
Also Check Out:
- Emmitt Smith Says New Safety Rule Means NFL Has “Lost Its Mind”
- Deion Sanders Divorce Drama Gets Nastier With Steroid Allegations
- Woman Defends Beating Son Caught In Homosexual Act
- Dallas Hospital Offers Free Facial Surgery For African Girl
- Good Samaritan Critically Injured Helping Driver
MOST VIEWED GALLERIES