Hertz Global Holdings Inc. has come under massive shareholder pressure to seek a permanent top executive and the company acknowledged it should restate its financial fillings from 2011 through 2013.
The company lost its chief executive after a review made by the board’s audit committee so far uncovered financial errors worth $87 million. The probe is “looking into the tone at the top” and the way the top layers of management cast its influence over those mistakes. The rental-car company was announced back in June that the US Securities and Exchange Commission started a formal investigation – finding in the process that its internal controls were weak and that it could not use the ineffective procedures.
Then, chief executive officer Mark Frissora resigned as chairman and CEO in September, amid mounting pressure over the accounting errors from activist shareholders including billionaire Carl Icahn. The company – that has been searching since for a replacement CEO, agreed to change some of its directors with Icahn associates after the billionaire disclosed his 8% holding in the company.
Herts, headquartered in Naples, Florida, had seen its shares drop 24% this year and announced its earnings before interest, taxes, depreciation and amortization for 2014 should be $1.3 to $1.45 billion after back in August the Ebitda target stood at $2.06 billion to $2.42 billion.