By Keith Laing - 12/12/13 09:27 AM EST
Outgoing American Airlines CEO Tom Horton will receive a $17 million severance package for giving up his post in the company’s merger with US Airways, the Los Angeles Times reports.
Horton is scheduled to become chairman of the board of directors for the new American Airlines, which completed its merger with US Air this week, for one year. The day-to-day operations of the merged company will be run by former US Air CEO Doug Parker.
The paper said Horton’s payment is expected to come in the form of $5.4 million in cash, $4.2 million in American stock, a $6.5 million "alignment award" and a potential $1.3 million performance bonus.
US Air and American are expected to begin integrating their operations in ways that passengers can see, such as combining frequent-flier mileage plans, as soon as early January.