Hertz loses first top executive since coming out of Chapter 11 bankruptcy


Hertz has lost its first top executive since coming out of Chapter 11 bankruptcy.

In a regulatory filing this week filed with the US Securities and Exchange Commission, the publicly traded company announced that Opal Perry had resigned as chief information officer to “pursue other opportunities.”

She gave notice on September 9 – and her resignation took effect the next day.

Meanwhile, the Wall Street Journal reported that Hertz is looking for a new CEO, based on information from anonymous sources.

On August 16, the board of directors of Estero-based Hertz Holdings gave the green light to retention bonuses for a handful of company executives, including Perry and the current CEO, in hopes of keeping them at minus a few more months.

Bonuses approved for four executives totaled nearly $ 3.2 million.

In case you missed it:Hertz changes gears and chooses new sponsors to come out of bankruptcy in June

Previously:After losing $ 1.7 billion in 2020, Hertz sees a better way forward

More like this:It’s official: Hertz comes out of bankruptcy, with management changes

The lobby of Hertz's world headquarters in Estero.

The board accepted a bonus of $ 500,000 for Perry, a large number, but the lowest amount among eligible officers.

To keep the full amount of their loyalty bonuses, executives must not leave the company before January 1, 2022, according to a regulatory file which details the conditions of the rewards.

A clawback provision allows Hertz to recoup a prorated share of its money from agents if they leave early, by crediting time spent on duty.

In the event of termination for “cause”, Hertz may require an agent to reimburse 100% of the premium. This does not apply to Perry’s case since it was she who decided to leave, and not the other way around.

Hertz, one of the first victims of the coronavirus pandemic, emerged from bankruptcy at the end of June, emerging stronger, but with still a lot of work to do.

Assessed value The Hertz Corp. head office building.  in Lee County is now the subject of a lawsuit after its valuation was reduced by $ 13 million by an appeal board.

Here are the other agents who received loyalty bonuses, along with the amounts they received:

  • Paul Stone, President and CEO, $ 1.4 million
  • Kenny Cheung, CFO, $ 660,000
  • Mr. David Galainena, General Counsel, $ 605,000

Hertz has not announced any plans to replace any of those executives – or indicated whether they should stay until the end of the year.

Last week, however, the Wall Street Journal reported that Hertz was actively seeking a new CEO.

Paul Stone, new CEO and Chairman of Hertz Global Holdings.

Stone has held the most senior position at Hertz since May 2020, taking the position days after the company filed for Chapter 11 bankruptcy.

Sources told the Wall Street Journal that “Hertz is speaking to several potential CEO candidates and a decision has not been finalized,” so it is not clear when the leadership change could occur,

Lauren Luster, spokesperson for Hertz, declined to comment on any potential changes in the company’s leadership going forward.

In addition to being CEO of Hertz, Stone sits on the company’s board of directors.

Of the society new tip has nine members, including representatives of the trio of companies that funded Hertz’s exit from bankruptcy – Certares Management LLC, Knighthead Capital Management LLC and Apollo, which together bought the bulk of Hertz shares after beating the competition with a softened offer.

Hertz Corp., which is headquartered in Estero, faces a lawsuit for unpaid overtime.  Brianne Gale, former associate director of the Pinellas County car rental giant, has filed a class action lawsuit against the company in U.S. District Court in Tampa.

In addition to its eponymous brand, Hertz operates the Dollar and Thrifty car rental services.

In May 2013, Hertz announced the relocation of its global headquarters from New Jersey to Estero following the acquisition of Dollar Thrifty Automotive Group.

The new multi-million dollar headquarters opened in 2015.

Source link


Leave A Reply