The well-known car rental company has been troubled recently by the departure of its CEO following internal audit issues and through a deal with billionaire investor Carl Icahn another three directors have left the management board.
The company conceded the replacements with Icahn’s associates and now Henry C. Wolf, Barry H. Beracha and Philippe P. Laffont will leave the rental-car company’s board. They will be replaced with Ichan’s sanctioned associates Vincent J. Intrieri, Samuel Merksamer and Daniel A. Ninivaggi.
The settlement stipulates that Icahn himself will not seek board representation and that he would comply to company nominees when it’s time for Hertz’s 2015 annual meeting, while the threshold for prompting the introduction of the shareholder-rights plan climbed from 10 to 20% – Icahn and his business associates only hold a stake in Hertz of around 9%.
On September 8 the company’s Chief Executive Officer Mark Frissora left his position after the investors asked him to step down, following accounting and operational issues. According to a statement from Hertz, Frissora decided to vacate the chairman and CEO seats because of a personal decision. The first and second-quarter financial results have not been reported so far, as Hertz stated that its financial statements from the past three years have been found to be unreliable.