The Justice Department says a proposed $20 million severance payment for the CEO of American Airlines is too big and should be rejected.
The proposed merger of US Airways Group Inc. and American calls for American's current CEO Tom Horton to lose that job and become chairman. American has proposed severance pay of almost $20 million, along with lifetime flight benefits.
The objection filed Friday by the U.S. trustee's office says American's bankruptcy plan does not explain why he should get so much money. The objection says Horton's contract calls for him to get $6.4 million if he had left at the end of last year, and raises the question of why he should get so much more money now.
The case is in federal bankruptcy court in New York.