Car Rental Firm Hertz Announces New CEO

This week Hertz Global Holdings Inc. announced that it has named Paul Stone as chief executive with immediate effect. Stone was most recently executive vice president and chief retail operations officer.

He is replacing Kathryn Marinello, who is resigning as CEO, president and member of the board. Marinello will remain with the company in a consulting position for up to one year.

Shares soared 18% premarket on the news.

“After an ongoing succession planning process, the Board elected Paul to lead Hertz’s next chapter,” said Henry R. Keizer, Hertz’s Chairman. “Paul brings a customer-centered approach to growing the business that is driven by process excellence and employee engagement. Having successfully run our largest business segment for the last two years, Paul helped strengthen our brands by elevating service standards across the North American car rental operations.” Keizer continued, “We also want to thank Kathy for her contributions as an exceptional business leader. Since joining the company in January 2017, she oversaw a successful operational turnaround, transformed Hertz’s culture, and built a best-in-class leadership team.
The Board wishes her all the best.”

“The hardest part about stepping down is leaving the amazing employees that have earned my respect over the last three-and-a-half years. It was an honor to serve them,” said Marinello. “I am confident that under Paul’s leadership, Hertz will prosper long into the future.”

“It is a tremendous honor to have the opportunity to lead Hertz,” Stone said. “I thank Kathy and look forward to working with my colleagues to do what Hertz people do best – anticipate where transportation, mobility and technology are going and innovate to best serve our customers, stakeholders and communities.”

It was last Tuesday that Hertz shares fell to their lowest-ever close after the company issued a “going concern” warning. This was accompanied by disappointing first-quarter results and a deadline to negotiate debt relief with its lenders approaching.

The coronavirus pandemic has curbed driving as customers comply with stay-at-home orders around the world.
Shares are down 80% YTD.

Disclaimer: We have no position in Hertz Global Holdings Inc. (NYSE: HTZ) and have not been compensated for this article.