NEW YORK (Standard&Poor's) April 21, 2003--AMR Corp. (CCC/Watch Dev./--) unit American Airlines Inc.'s (CCC/Watch Dev./--) financial turnaround plan is being threatened by a controversy over executive compensation. Standard&Poor's Ratings Services said today its ratings on both entities remain on CreditWatch with developing implications. Disclosure last week of retention bonuses and the creation and funding of a bankruptcy-remote supplemental pension plan trust for AMR and American executives continues to anger employees, who last week narrowly approved deep cuts in their compensation, despite management's cancellation of the retention bonuses and a promise not to make further investments in the supplemental pension plans. The flight attendants' union is threatening to hold a third vote on the concessionary contracts, which
