Merger Approved by Judge, Horton's Parachute Rejected

[MCI transplant]

Is the contract violating the intent or the letter of the law? The intent of the law was to avoid someone going into bankruptcy, emerging, and getting a windfall by staying around.

It's a little less clear that it was intended to also cover a merger or hostile takeover.

If you read the Judge's written ruling, the only violation of the law would be if he were paid by AMR.

He was never going to be paid by AMR. He will be paid by NewCo. And the judge says that the company would be free to do so, subject to approval by the new board.

Whitch brings me back to my original question.------- Would the "NewCo." be legally obligated to pay him that amount? And would his severance contract, which he signed with "AMR", still be binding with the "NewCo"?-------- It's one thing if the judge says the new board "would be free to do so," and quit another, that they are "legally obligated" to do so!

 

[robbedagain]

i think they are given that they promised him split stock/cash to walk away after the merger closeshe remains til next spring

 

[eolesen]

MCI, if they don't renegotiate his contract, then Tom Horton just became one of the most eligible airline consultants and executives ever imagined.

Why? His non-compete would no longer be enforceable. Less clear if his NDA's would be enforceable (maybe Veritas or FWAAA could offer an opinion on that). The lawsuit againt

Something that usually gets lost in the emotion of arguing over executive contracts and parachutes:

You're not only paying them to leave -- you're paying them leave, and keep their mouth shut. To sit on the sidelines for the next 2-3 years, depending on the length of the NDA and non-compete.



If NewCo doesn't negotiate new terms, there's nothing that would stop Horton from becoming a consultant to Delta, United, or any other airline who would love to have all the knowledge locked up in his head. Lots of details cross a CEO's desk.

Back in the day of paper reports & presentations on slide film (oh, the fun of having to finish a presentation 36 hours in advance just to have the slides developed...), you could fire an executive, and watch over what they packed into their cardboard box of belongings...

Today, with webmail, USB thumb and hard drives, it's a really dangerous proposition to assume that a senior employee doesn't have information "just sitting around" on a personal storage device after they leave.

Heck, I just found a box of 3.5" floppy's not too long ago when cleaning out my garage. All of them were work files from AA. I probably have a few CD's from backing up my work laptop as well. As I type, my wife is reading her webmail, and downloading an attachment onto her house PC...

So... think of all the intimate details of AA's new plan that Tom or any other exec would be exposed to, and imagine him sitting across the table from the guys at WN, UA or DL...

 

[AANOTOK]

Maybe we should just send him to guantanamo bay and lock him up or see if we can break him, E. All that info he possess could possibly be leaked to our enemy and may be devastating to the new AA and our country...
But then you and your vast knowledge is still free so forget it!

 

[Barfbag]

Like the Tonight Shows ratings up and Jay Leno leaving... Horton leaves with great numbers and bankruptcy experience on his resume. He'll get plenty of job offers, paying much more money. So don't worry about him.

There is a whole lot of hurting coming your way..

So fasten your seat belts...

 

[dfw gen]

E's just a washout that wishes he was..

 

[eolesen]

[redacted on edit... not worth the time or kilobytes]

 

[topDawg]

All for show by the judge, management always gets paid their millions and ill gotten bonuses....regardless of poor financial performance, incompetence, and bankruptcy.

Nothing to see here....

Sadly i think i saw somewhere that the judge agreed with the package but due to the law he "had" to reject it.
Someone want to explain just what in the 40 hell has Horton done to get 20M?

 

[topDawg]

Really? Well if he has more money than he will ever need then why is he still "working"? They like being in control. Its all about Ego.

greed and ego. Whats better than $20M? $21M.....

plus on the ego side I bet AA had people like Horton lining up to screw over some of the most powerful unions in airline history. (all you TWU lovers don't get all giddy. I'm talking more about the only union who told the company to eat it(APA). )

IMO proof of this is some of the deference between Horton and Aprey. Some many things that "Cost the same or less" under Aprey magically turned to big loss makers for Horton. (ie aircraft overhauls, pensions etc.) IMO its all about ego and beating labor down. I don't believe for a second Aprey's greedy ass couldn't do simple math.

 

[MCI transplant]

I'm going to get a little off topic here!------- Or am I? http://www.safeshare.tv/w/UAGOcLSuLX

 

[WorldTraveler]

looks like Horton's pay is back in the reorg plan.

http://www.airlineforums.com/topic/55307-merger-approved-by-judge-hortons-parachute-rejected/page__st__36

 

[enough already]

Getting his 20 Bil...
http://mobile.reuters.com/article/idUSBRE93F03H20130416?irpc=932

 

[MCI transplant]

Not surprising!------ Is he worth it?----- Hell no! It would seem the big boys always take care of their own!

 

[1AA]

Not surprising!------ Is he worth it?----- Hell no! It would seem the big boys always take care of their own!

That includes the Union Big Boys as well.