Services

A New Broom: Hertz Replaces CEO and 3 Board Members

Thinkstock

Car rental company Hertz Global Holdings Inc. (NYSE: HTZ) announced late Tuesday that CEO John Tague will retire effective January 2, 2017. Kathryn Marinello, who has served as CEO of two companies and filled a variety of senior positions at General Electric, has been named to replace Tague.

Marinello also will replace Tague on the boards of directors of both Hertz Global and Hertz Corp. Three other board members — Non-Executive Chair Linda Fayne Levinson, Compensation Committee Chair Carl T. Berquist and Financing Committee Chair Michael J. Durham — “have chosen” to leave the boards on January 2. Following their departure, the companies’ boards will comprise seven directors, of whom six are defined as independent.

The change marks the third CEO for Hertz in the past two years. Tague replaced Mark Frissora, who had held the post for eight years, in 2014. The company’s largest shareholder, Carl Icahn, got board representation in September 2014, the same time that Frissora resigned for “personal reasons.”

Of Marinello’s appointment Icahn said:

I am excited about Hertz and its prospects with Kathy at the helm.  Kathy has a history as a proven CEO and I believe she is the right person to lead Hertz as we move forward. Her consistent track record of successes in consumer and financial services, as well as technology businesses, is impressive.  She was extremely well-regarded at GE and successfully turned around Ceridian and Stream.

The new non-executive chairman, Henry Keizer, said:

Kathy is a tireless leader whose record shows a relentless focus on execution and high performance, having led a number of complex businesses and turnaround situations.  Her financial acumen and hands-on operating style will serve her well as she focuses on the strategic priorities facing Hertz today.  Kathy is a world class leader who understands how to create shareholder value.

Investors are less pleased, taking the stock down about 5% Wednesday morning to $23.86, in a 52-week range of $6.95 to $53.14. The consensus price target is $30.86.

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.