Horton's package will result in some comment from the judge, but it's recognized it's a small amount to pay compared to the chunk of change he would have received if American would have exited bankruptcy independently.
U.S. Bankruptcy Judge Sean Lane has scheduled a hearing on March 27 to consider the proposed merger between American Airlines and US Airways.
The merger, which was announced last week, also needs approval from government antitrust regulators before it can be finalized. The judge also set a March 15 deadline for parties to respond or object to the motion to approve the merger.
At a hearing in New York City, Lane will consider approving the merger as well as AMR CEO Tom Horton’s $20 million cash and stock compensation package.
Horton is staying on as the merged carrier’s chairman of the board, and US Airways CEO Doug Parker will become chief executive of the combined airlines.
Parker met with leaders of the pilots unions for American and US Airways Thursday.
At the meeting, which was at headquarters of the Allied Pilots Association in Fort Worth, Parker fielded questions from its board members and from representatives of the US Airline Pilots Association, the groups said.
In a joint statement, the unions said Parker, US Airways President Scott Kirby and Executive Vice President Elise Eberwein delivered brief remarks to the unions’ boards.
“The pilot representatives emphasized the need for a new culture that effectively engages employees and recognizes our pilots’ leadership role in the operation of the airline,” the statement said. “The executives acknowledged the need to create a new corporate culture and to build trust and credibility between the airline’s management and front-line employees.”
(c)2013 the Fort Worth Star-Telegram. Distributed by MCT Information Services.
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