When a major airline files bankruptcy, everybody is supposed to get a haircut: Employees, creditors, investors, pensioners, unions, and maybe even the customers. But not the CEO.
Last week, a federal judge rejected a $20 million payout for American Airlines CEO Tom Horton, who oversaw the carrier’s Chapter 11 reorganization and its deal to merge with U.S. Airways. The judge said the amount exceeds guidelines set by Congress. But also said there’s nothing to stop the new, reorganized company from making the payout.
No doubt Mr. Horton deserves to be compensated for his work, but in a company that’s trying to shed its debts and get it’s cost structure in line with reality, how much is too much?
Click here to watch me talk about this and other topics in the news with Will Ripley of Denver’s NBC Affiliate, 9News.