Hertz Global Holdings said, in a regulatory filing, that it will pay recently departed CEO Mark Frissora about $10.5 million in cash, a majority of his bonus for 2014 and other equity-related compensation as part of a separation agreement with the company. Although Hertz cited “personal reasons” for Frissora’s departure, it is widely believed he left after calls from major stockholders – including activist investor Carl Icahn and Fir Tree Partners -- for him to step down in the wake of accounting issues that prevented the company from filing quarterly results in the first two quarters of 2014.
Hertz also will be recalculating results for the past three years as a result of the errors.
In a regulatory filing, Hertz said Frissora’s departure was a termination “without cause.”
In addition to the cash payment, which reflects two and a half times the sum of Frissora’s base annual salary and bonus for 2013, he will receive 68 percent of the 2014 bonus he would have received had he remained with the company. Frissora will also be able to exercise outstanding options that are vested. Miscellaneous benefits, such as car privileges or reimbursable medical bills, will remain in place for 24 months.
Frissora has been Hertz’s chief executive since 2006. He was replaced on an interim basis by Brian MacDonald, who recently had been hired to lead Hertz Equipment Rental Corp.
Hertz also recently withdrew its financial guidance, stating that its results for this year were below expectations.
Hertz is headquartered in Naples, Fla.