Hertz Global Holdings, Inc. (NYSE:HTZ)’s CEO and Chairman, Mark Frissora, is stepping down, for personal reasons. Brian MacDonald, Hertz Equipment Rental Corp’s head, was appointed as interim CEO to cover for the loss, according to Bloomberg TV‘s Olivia Sterns.
There are different facts pointing at pressure from the investors to replace Mark P. Frissora due to accounting and management missteps. The company did not offer any financial statements for the first two quarters and declared that it cannot rely on its past three years reports. Carl Icahn, whose stake is about 8.5%, is one of the most notable investors that proposed Hertz Global Holdings, Inc. (NYSE:HTZ) to change its CEO.
Earlier, in August, Hertz Global Holdings, Inc. (NYSE:HTZ) made an announcement that George Tamke was retiring from the board and Linda Fayne Levinson, independent lead director, took the place of the rental company’s independent non-executive chairman. Analysts regarded this announcement as Hertz Global Holdings, Inc. (NYSE:HTZ)’s intentions and hopes related to Levinson to take control of the situation and sort things out. Also, there are some other strategic moves ahead.
“Hertz is also saying this morning they’re going to proceed with their plans to separate their Equipment Rental business from their actual Car Rental business,” said Olivia Sterns.
The separation is planned to be in the form of a tax-free spin-off to Hertz shareholders and it should be closed by early 2015. Part of the money received after the division will be used to repurchase about $1 billion worth of shares.
The company has a price slightly lower that $29 per share and follows a relatively spiky pattern on growth since the end of 2008. It has a price over earnings of 38.86 and earnings per share of 0.75. As the numbers work in their favor, the company has to fortify the latest changes, offer some transparency for the investors and calmly pursue its previous intentions. Also, being Mr. Icahn’s choice offers Hertz Global Holdings, Inc. (NYSE:HTZ) some form of advertising, that can help it get over these recent events.