Judge denies American Airlines CEO's $20M severance

American Airlines and AMR Corporation, Chairman, President and CEO Thomas Horton, reacts as he testifies on Capitol Hill in Washington, Tuesday, March 19, 2013. before the Senate subcommittee on Antitrust, Competition Policy and Consumer Rights hearing on "The American Airlines/US Airways Merger: Consolidation, Competition, and Consumers" . (AP Photo/Manuel Balce Ceneta)

April 12, 2013 2:15:23 PM PDT
The CEO of American Airlines will not be getting his $20 million severance package, at least for now.

A federal bankruptcy judge blocked the proposed severance payment the airline was preparing to give Chief Executive Tom Horton.

The judge ruled the payment would exceed limits for such rich "golden parachutes" that Congress set for bankruptcy cases in 2005.

The judge did, however, leave the door open to reconsider the request in the future. And the airline says it will keep pushing for the payoff.

Horton will be replaced as American's CEO once the company's merger with U.S. Airways is finalized.