Hertz Global Holdings Inc. paid more than $16 million in retention bonuses to senior managers, including its new chief executive, just days before it filed for bankruptcy Friday night.
The car-rental company said it agreed to pay a $700,000 bonus to Chief Executive Paul Stone, who was named to the post this month. Chief Financial Officer Jamere Jackson received $600,000 and Chief Marketing Officer Jodi Allen got $189,633, according to a Tuesday regulatory filing.
Bumper0143 Another great corporate morality tale.
And we keep allowing this nonsense
wuerker Chutzpah.
The trustee better work hard to get these back.
What can be ‘fact check’?
Run the company into the ground. Get a bonus. hellyeahbrother
There you have it 🙄
When a company declares bankruptcy, the entire C suite should be immediately terminated and replaced with publicly accountable management. All of the former executives compensation for the past year should be clawed back less minimum wage.
KathyMarinello & Hertz executives should return their bonuses . carl_c_ichan should demand they return their bonuses. Shit management ran it into bankruptcy!
Why would you want keep these people if you’re going bankrupt? Obviously they are not effective.
Claw back the bonus
Wonder how legal this is ? Raiding the kitty just before business folds ?
edwardnh and did you know taxes on bonuses were reduced from 25 to 22% in the Jobs Act; man I’m sure we really coild have used those 3% points to help pay for these bailouts. 😂
TheCorollary Of course.
This story reminds of power company, PGE, in CA that paid bonuses, salary increases, just after Paradise fire that wiped out a town. Later it filed for bankruptcy.
Shameful.
And no one will go to jail for this theft. Meanwhile people lose their lives over bull crap traffic stops
RobertArtRobArt Damn. Theft
These are the (for too long now) actions that, along with alt left, are taking U.S. down. we could withstand one or the other... not both.
Oh that should be illegal!!!!
Just like every other exec staff at every company. Doesn’t make it right, but not a crime.
Failure of the American business model...the lack of social morals.
Because actually paying their debts with it would have been irresponsible and irrational...
THATS THE GAME EXECUTIVES FIRST STOCKHOLDERS LAST
No surprise there!
Fair play.
海伦牧师再制特辑视频川普推特纪念自由的代价香港焦点须展望七国峰会，点击可订阅观看
Criminals
So bonus is more important than debt?! Those regular employees becoming unemployed and has not bonus or severance pay. Good job!!!
The 90 day reach back will take care of the bonus’s. They’ll be returning them
This is typical now when companies are on the fritz.
yvonnewingett Shocking.....
CEO’s got their fat 16M$ checks Before small vendors get their unpaid balances from Hertz. Who is going to serve the justice? Robin Hood?
Always said, the biggest crooks are in the US
How did they pay the bonuses? Stock , bonds , or cash ?
maggieNYT 😷
Corporate Corruption!
Can a bankruptcy court change this?
Stock market disconnected from reality. Soon, these executives’ heads will become disconnected from their bodies.
And then turned around and laid off 12,000 employees. Shameful!!! Hertz
maggieNYT Criminal.
Hertz 🖕🖕🖕🖕🖕🖕
maggieNYT Gotta clean out the register before the employees come looking for their severance pay!
jimrockfordatSH Well well well...surprise surprise.
Just like JCPenney. Handed out millions in bonuses to the top tier and then declared bankruptcy because of “The COVID” shutdown. 😂😂 The only ones I feel sorry for the workers whom they screwed royally.
maggieNYT Hey TheRealOJ32 - this is your fault.
HAHAHA gotta love it. What a world
Davidlaz
Thats good enough. I need results. I cant give if i dont got
Ohhh nooooo... I still think hertz is a really good company, definitely the best rental car company. They need to update a few things, maybe get with the times a little but I in no way think it’s going out of business.
Davidlaz Boy what a waste of money these execs are all worried about their golden parachute I can see nothing has changed since I was there in 1977
Imagine how much they get for making the company shareholders money
Wall Street Corruption..!
Of course they did
maggieNYT I think their creditors would like a word...
“One potential legal hurdle: Payments made to corporate insiders within one year of a bankruptcy filing can potentially be clawed back into the bankruptcy estate.” Prof quoted says such clawbacks are rare. Let’s see what happens — if the end run is tolerated.
Pulled a page out of the jcpenney playbook, huh?
maggieNYT FIRE THE BOARD OF DIRECTORS & THE CEO. Hertz B.O.D. - This is a clear dereliction of your DUTY OF CARE - WITH NO GOVERNANCE OR OVERSIGHT. I HOPE YOU HAVE DIRECTORS INSURANCE ? ......YOU ARE GOONG TO NEED IT.
The court can reverse this
Complacency and greed destroying America.
Well, you've gotta admit, they didn't leave. So there's that...
True, but they charged them $6.99 a gallon when they returned their cars.
Sounds like TrumpIsAnIdiot
maggieNYT Of course. Screw the workers and the creditors. Another point to show the morals of today’s executive leadership. Sinful.
edwardnh Trickle down economics and a government playground controlled by some of the wealthiest, self-serving, disconnected people in the country is working just stupendously for “We The People” or should I say “Human Capital Stock”, right? Can’t we do any better? 🤷🏼♂️🤔😏✌️
Go out with a bang!
maggieNYT This should be illegal
Do I hear that old song “Claw Back” playing?
Greed consuming capitalism
keithgkerr
maggieNYT Sometimes it is necessary to bribe your brainpower to stay, especially if you are going out of business and, therefore, can't really hire replacements.
Won't rent a Hertz again.
Of course...
Likely the first and last case in this everlasting corporate scam. 2007 was the right moment to cleanse up US from corporate crimes, but all knew what was happened. Oligarchy of whitey greediness and fraud.
C O R R U P T I O N
Clawbacks coming..
maggieNYT Bankruptcy judge may have ability to claw some of those bonuses back.
Here to hoping they never recover from this.
Probably get another bonus if they go Chapter 7.
Legal White Collar Crime at its finest.
maggieNYT Why is anybody surprised?
That is a clasic move from MBA people.
in the monopoly game, isnt there a GO TO JAIL stop
That Hertz
Malignant Capitalism strikes again.
Shock
This type of behaviour needs to stop, money returned
Court must order them to return the bonuses
maggieNYT Well we have to take care of the only people that really matter don’t we ? Greedy bastards.
maggieNYT I’m never renting from Hertz again (and I’m a Gold member), unless maybe their bankruptcy involves flushing out all their current executives. What a bunch of crooks.
Trumpian economics 101.
maggieNYT For the love of God could we please pass some laws on this crap?
This is a common practice when a company goes into bankruptcy. Without retention bonuses, these executives could leave and it would make reorganization more difficult. The company needs these executives with industry knowledge to stay and guide the company through the process.
Of course it did. The rich keep getting richer. When are people going to actually decide to do something about it?
Go on take the money and run... woo hoo ooo
maggieNYT You want to know why people are angry. Bingo.
maggieNYT Compare to other bankruptcies. Without context this is meaningless
maggieNYT Plenty more where that came from. Disgusting, corrupt system.
maggieNYT Of course they did
maggieNYT Shady, but their stocks are up 24% in over night trading Shrugs
maggieNYT Huh. Color me shocked. No, not really.
Gotta love the old 'We ran the company into bankruptcy' bonuses.
Lock them up!
Investors have to sue them for a crime? How come those people got reward for make company bankrupt. Or other companies did the same but not that vulgar? Business as usual.
DougKass Of course they did. You would certainly want to retain the people who were in charge before the company went bankrupt. Maybe in a couple months they can hire Donald Trump. He's very experienced with going bankrupt.
DougKass Comforting
MelaynaLokosky plus will probably get $100 million of new equity when come out of chapter 11.
REALLY IT IS A CASE OF IRRESPONSIBLE MANAGEMENT. THE INVESTORS ARE WORST LOSERS. INVESTORS CONFIDENCE IS MOST IMPORTANT FOR ECONOMIC DEVELOPMENT. THE GOVERNMENT, REGULATORS SHOULD ENSURE INVESTORS WITH EFFICIENT, RESPONSIBLE, ACCOUNTABLE MANAGEMENT FOR SAFETY, INCOME, LIQUIDITY.
Wow! Just wow! Like JCP
This doesn’t pass the smell test
I have faith the BK judge will claw that back. No cure for stupid. There should be jail time for stuff like this.
The court can claw that back, I believe.
Running your company into bankruptcy makes you eligible for bonuses?! I’ve been doing it all wrong...
😂😂😂😂😂
Would be a shame if someone doxxed these executives. Hopefully the shareholders get justice, in some form.
There's something wrong with the business model, where the primary focus is to pay exec bonuses, not to maintain the daily functioning of the business.
Silver_Watchdog Haven't they just announced few days ago every employee will work from home? I guess it's true.
Hertz CROOKS! They deserve to go bankrupt!
RudyHavenstein And we are supposed to be upset at min wages workers collecting 600 bucks?
Same ol’, same ol’. Load up the debt, bleed it, squeeze some more and then abandon your workers and retirees. Reminds me of that New Torker story where the guy from Greenwich/Trump supporter disavowed any interest in moral consequences.
Wow completely not shocking
What. The. Fuck.
Wait till you find out how much the bankruptcy lawyers will fleece them for!
Witty 😄
'And who's minding the store?' So they padded their parachutes before pulling the cord.
😨
My last experience with Hertz started with them telling me I am currently on the 'Do Not Rent To' list because... allegedly during my previous rental a few weeks before I never returned the rental car after getting into an accident, receiving a DUI, and going to jail. TrueStory
Why am I not surprised. They aren't the only ones doing it.
Ford bailed it out, Penske bailed it out. At some point you gotta shoot that dog?
How is this (still) legal?
Society is broken. Companies pay executives millions but when people file for bankruptcy they lose property, and the negative bankruptcy information stays on your credit report for 10 yrs. Trying to rent or get a job with bad credit is very difficult.
Very Enron of them.
They deserve to fail
We had thought that bankruptcy laws prevented preferential treatment of creditors and allowed for clawback of non-priority creditors such as the bonuses paid to executives. These executives would have known the Financial consequences, directed contemplated bankruptcy filings.
Crony Capitalism at its best...
Oh that’s going to be clawed back
JC Penny did the same just days ago .
SOP, you want key people to stick around and help shepherd the company through bankruptcy. If they leave early they have to pay it back...
Am I reading that one guy, who got hired this month, is getting a $700k retention bonus?
Hertz said it agreed to pay a $700,000 bonus to Chief Executive Paul Stone, who was named to the post THIS MONTH. CFO Jamere Jackson received $600,000 and Chief Marketing Officer Jodi Allen got $189,633.
what's up with the companies? They don't respect the employees who actually build them. One pandemic that led to losses for what, 3 months and they start to fire employees. This thing is gonna end, just like all other pandemics. People should lookout for such companies
Reward for making it bankrupt 🤔
Claw-back incoming.
Straight from the Gordon Gekko playbook.
They gotta eat.
yes
That is vulgar.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNN - 🏆 4. / 95 Read more »
Source: Reuters - 🏆 2. / 97 Read more »
Source: WSJ - 🏆 98. / 63 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: latimes - 🏆 11. / 82 Read more »