Feds Balk At Proposed $20 Million Severance For American Airlines CEO

A proposed $20 million severance payment for the CEO of American Airlines has come under fire recently.

The merger with US Airways calls for Tom Horton to lose his job and become chairman. Friday, the Justice Department said $20 million is too high and should be rejected.

Horton's contract calls for a $6 million severance.

The case is moving through federal bankruptcy court in New York.

2/14/2013 Related Story: American Airlines, US Airways Unveil $11 Billion Merger