Hertz Global Holdings president and CEO John Tague is stepping down to be replaced by former GE executive Kathryn Marinello. Tague will depart Jan. 2, after leading the car rental company for a little more than two years.
Financially, Hertz has had a rough past few quarters, and shareholders have been "very frustrated and vocal" about the company's performance this year, MKM Partners analyst Christopher Agnew wrote in a research note. "Although we believe some of the frustration with management is unfair (given what they inherited), a change at the top and new leadership was possibly necessary."
Marinello, who will take over on Jan. 3, currently is a senior advisor at asset management firm Ares Management and previously served as CEO of several other companies, including outsourcing firm Stream Global Services, HR software supplier Ceridian, GE Fleet Services and GE Insurance Solutions. Hertz's largest shareholder, Carl Icahn, who doubled his stake in Hertz in November, called her the right person to lead the company.
"Her consistent track record of successes in consumer and financial services, as well as technology businesses, is impressive," he said. "She was extremely well-regarded at GE and successfully turned around Ceridian and Stream."
The three longest-serving directors on Hertz's board -- nonexecutive chair Linda Fayne Levinson, compensation committee chair Carl Berquist and financing committee chair Michael Durham -- also will leave their positions when Tague departs.
Agnew said their resignations were appropriate, given they had approved Hertz's headquarters relocation from New Jersey to Estero, Fla., when Hertz acquired Tulsa-based Dollar Thrifty Automotive Group in 2012. Agnew called the move "an unmitigated disaster with hemorrhaging of employees and the exposure of inadequate systems in the absence of employee experience."
Source: Business Travel News