Mark Frissora, chief executive officer of Hertz Global Holdings Inc. stepped down after investors pushed for his removal due to accounting and operational slips.
The Florida-based company stated that Frissora is leaving his chairman and CEO positions for personal reasons. The board has begun looking for a permanent chief, and appointed Brian P. MacDonald, head of Hertz Equipment Rental Corp. to temporarily fill the position with Linda Fayne Levinson, independent lead director, to serve as independent non-executive chairman.
Frissora, 59, became CEO in 2006 before Hertz’s IPO, overseeing the firm’s 2012 acquisition of Dollar Thrifty Automotive Group Inc., which decreased the number of major rental-car companies from four to three. Hertz did not manage though to capitalize on the pricing power that consolidation created. Shares from the rental-car company rose 4% to $29.60, while they fell 0.6% throughout this year, and rival Avis Budget Group Inc. gained 64%.
Some investors think Scott Thompson would be the better choice for the recently empty CEO position as the former CEO of Dollar Thrifty Automotive Group Inc. sold the company to Hertz for $87,50 a share after Frissora’s initial offer of $2. Frissora is in line for an exit package of around $14 million if terminated without cause, but the board may have negotiated a lower payout. The company did not immediately reply to the questions regarding Frissora’s resignation.
By Gabriela Florea