1. Welcome to Tundras.com!

    You are currently viewing as a guest! To get full-access, you need to register for a FREE account.

    As a registered member, you’ll be able to:
    • Participate in all Tundra discussion topics
    • Transfer over your build thread from a different forum to this one
    • Communicate privately with other Tundra owners from around the world
    • Post your own photos in our Members Gallery
    • Access all special features of the site

Hertz Files For Bankruptcy After 16,000 Employees Were Let Go And CEO Made Over $9 Million

Discussion in 'Off-Topic Discussion' started by T-Rex266, May 26, 2020.

Thread Status:
Not open for further replies.
  1. May 26, 2020 at 9:44 AM
    #1
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    After 100 years in business, Hertz filed for bankruptcy on Friday, proving to be yet another casualty during Covid-19.

    The old-time entity now joins the likes of J.C. Penney, J. Crew, Neiman Marcus, Gold’s Gym, Pier 1 and the McClatchy newspaper chain—companies that have all sought bankruptcy protection in recent weeks. Hertz was just another victim of the pandemic, people will say. It's easy to blame the company’s misfortunes, as well as the other corporate casualties, on the pandemic. The reality is a different story. The failures of Hertz and the others have more to do with their own arrogant inertia and inability to recognize the fast-changing trends and a refusal to adapt their business models accordingly.

    Back in the day, Avis was Hertz’s major rival. Avis branded itself as the scrappy underdog and adopted the advertising tagline, “We Try Harder.” It was meant to convey that the folks at Avis will do whatever it takes to make its customers happy. Hertz’s slogan should’ve been “We Didn’t Try Hard Enough.”

    The Wall Street Journal reported, “Hertz Global Holdings Inc., one of the nation’s largest car-rental companies, filed for bankruptcy protection Friday, saddled with about $19 billion in debt and nearly 700,000 vehicles that have been largely idled because of the coronavirus.” The company has lost money for the past four consecutive years, including $58 million in 2019.

    Back in March, responding to the deteriorating economic circumstances, Hertz laid off 12,000 workers and furloughed an additional 4,000 employees—25% of its workforce. Car rental companies are heavily dependent upon travel. People will rent cars for family vacation. A business person flying out to a client will go to a Hertz and rent a car for the duration of their visit. With air travel coming to a near halt, the need for car rentals has plummeted.

    It's true that Covid-19 has had an impact on Hertz—as well as an array of other large and small companies—but it was suffering long before we even heard of the coronavirus. Hertz had to contend with tough competition in the car-rental space, in addition to the onslaught from Uber and Lyft. Customers preferred the ease of use with car-sharing apps. There wasn’t a need to take the time to fill out long and one-sided contracts, wait for your car then have to drive it yourself in an unfamiliar location. Compared to this experience, it's much more convenient to open an app, request a ride and get whisked to your location.

    Some of Hertz’s problems have been self-inflicted. The company, which was founded in 1918, recently went through a number of restructures and four CEOs have gone through the turnstile. A private equity firm heaped a whole lot of debt on Hertz, which didn’t help matters.

    Hertz’s bankruptcy will have a big impact. It's likely that there will be future layoffs, in addition to the 16,000 employees who have already lost their jobs or have been furloughed. It's reasonable to believe that the hours of the remaining staff will be reduced and furloughed workers won’t be asked to return.

    Hertz bought and leased cars from General Motors and other carmakers. Now, it won’t be, which will hurt the automakers and all of their parts suppliers. Hertz will be forced to sell parts of its fleet of cars. This will put downward pressure on the used-car market. People who have considered selling their cars—to earn money because they may have lost their jobs—will not receive much for it, as there will now be an overabundance of used cars for sale.

    An unlikely group has also lost out due to Hertz’s bankruptcy filing. Robinhood, the trading app, had about 45,000 day traders holding stock in the company—most of whom presumably lost money while betting on the chance of a resuscitation for the car rental company. Creditors to the company will also lose out under the Chapter 11 restructuring and be forced to accept less repayments.

    Former CEO Kathryn Marinello succinctly summed up Hertz’s sad state of affairs, “No business is built for zero revenue.” In a regulatory filing for the fiscal year of 2019, Marinello walked away with $9,138,362 in total compensation. According to Salary.com, “Of this total, $1,450,000 was received as a salary, $1,405,050 was received as a bonus, $567,663 was received in stock options, $5,635,758 was awarded as stock and $79,891 came from other types of compensation.”

    Source
     
    Rica25, equin, jeremyd and 2 others like this.
  2. May 26, 2020 at 9:49 AM
    #2
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    Why does it matter what the CEO earned?
     
  3. May 26, 2020 at 9:53 AM
    #3
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    :notsure:
     
    Rica25 likes this.
  4. May 26, 2020 at 9:55 AM
    #4
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    A quick search of Toyota Tundras for sale from Hertz, came up with 1 Tundra within 100 miles of my location.
     
    Rica25 likes this.
  5. May 26, 2020 at 9:57 AM
    #5
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    Why should she get that much with a company that has filed for bankruptcy protection?
     
  6. May 26, 2020 at 10:01 AM
    #6
    TheBeast

    TheBeast The Beach

    Joined:
    Apr 27, 2016
    Member:
    #3246
    Messages:
    12,518
    Gender:
    Male
    SoCal
    Vehicle:
    2012
    bankruptcy is just a way to clean up finances and lay off people anyways ;) covid19 was a good opportunity for them. they will bounce back or get bought out.
     
    ZappBrannigan and Rica25 like this.
  7. May 26, 2020 at 10:02 AM
    #7
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    The company has to honor their contract with her... they agreed that she was worth paying that much when they hired her, and the bankruptcy isn't her fault. Hertz should restructure and return as a much smaller, more efficient company.
     
  8. May 26, 2020 at 10:02 AM
    #8
    TheBeast

    TheBeast The Beach

    Joined:
    Apr 27, 2016
    Member:
    #3246
    Messages:
    12,518
    Gender:
    Male
    SoCal
    Vehicle:
    2012
    yep..you get bonus or stocks when you do a job well...at least for us little people...
     
  9. May 26, 2020 at 10:02 AM
    #9
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    How do you know it wasn't her fault?
     
    Rica25 and Cpl_Punishment like this.
  10. May 26, 2020 at 10:03 AM
    #10
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    Hertz also operates under Thrifty, and Dollar.
     
    Rica25 likes this.
  11. May 26, 2020 at 10:04 AM
    #11
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    It's not just Hertz who is hurting. With the gigantic reduction of travelers, nobody is really renting vehicles anymore.
     
    ZappBrannigan, Rica25 and Rex Kramer like this.
  12. May 26, 2020 at 10:04 AM
    #12
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    All are suffering because of the virus caused drop in air travel.
     
  13. May 26, 2020 at 10:05 AM
    #13
    mountainpete

    mountainpete Explore more

    Joined:
    Oct 24, 2018
    Member:
    #20928
    Messages:
    2,406
    Alberta, Canada
    Vehicle:
    2018 Cement Crewmax TRD
    Function before sparkle.
    Most of her compensation was stocks.

    Which potentially means she had a good year last year on paper, but if she didn't sell those stocks she lost the vast majority of them. Would need to look up the filings to see if she sold or not.
     
    Rica25, Cpl_Punishment and snivilous like this.
  14. May 26, 2020 at 10:09 AM
    #14
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    So the reason why Hertz is going under is solely because of the Coronavirus? Lol. Right.

    For a company to be $19B in the hole, no CEO should be getting that much money. How does anyone think that makes sense?
     
    Last edited by a moderator: May 26, 2020
    Rica25, Darkness, equin and 3 others like this.
  15. May 26, 2020 at 10:12 AM
    #15
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    NY times

    The coronavirus pandemic has devastated Hertz by grounding business travelers and tourists, making it impossible for the company to continue paying its lenders. A sharp drop in used car prices has also decreased the value of its fleet.

    “They were doing quite well, but when you turn off the revenues and you own all these cars and all of a sudden the cars are worth less it’s a very tough business,” said John Healy, an analyst and managing director with Northcoast Research in Cleveland.

    Hertz said late Friday that it would use more than $1 billion in cash on hand to keep its business running while it proceeds with the bankruptcy process.
     
    1UPPER and Rica25 like this.
  16. May 26, 2020 at 10:14 AM
    #16
    mountainpete

    mountainpete Explore more

    Joined:
    Oct 24, 2018
    Member:
    #20928
    Messages:
    2,406
    Alberta, Canada
    Vehicle:
    2018 Cement Crewmax TRD
    Function before sparkle.
    Just want to be clear... She got that much money last year. Not this year. And if she didn't sell those stocks, she lost the vast majority of it.
     
    ZappBrannigan, Rica25 and Rex Kramer like this.
  17. May 26, 2020 at 10:17 AM
    #17
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    What is the reference criteria of "quite well" when a company hasn't turned a profit, and on the contrary gone deeper in debt, for the last 4 years?
     
    Darkness and Cpl_Punishment like this.
  18. May 26, 2020 at 10:20 AM
    #18
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    From NYtimes, based off a Google search.
     
    Rica25 likes this.
  19. May 26, 2020 at 10:24 AM
    #19
    BuckWallace

    BuckWallace Ball don't lie.

    Joined:
    Nov 25, 2017
    Member:
    #11160
    Messages:
    1,857
    Gender:
    Male
    Oregon
    Vehicle:
    Sierra 3500 AT4 Gasser
    Salary is one thing, but bonuses and stock awards for being in charge of a company going into bankruptcy doesn't seem right to me. I'm not all anti-corporate, CEO pay disparity, blah blah blah, but there come a point where it just gets ridiculous.
     
  20. May 26, 2020 at 10:28 AM
    #20
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    Perhaps, but they hired her with that contract... I mean 99% of pro ball players are paid ridiculously high salaries, but few people get upset about that.
     
  21. May 26, 2020 at 10:31 AM
    #21
    Tundyfundy

    Tundyfundy Petunia The Tundra, and her sidekick Colbie

    Joined:
    May 5, 2017
    Member:
    #7567
    Messages:
    2,699
    Gender:
    Male
    Southern California
    Vehicle:
    Magnetic Grey DC SR5 4x4 2016
    SUSPENSION: Bilstein 6112 coilover (1.9") w/ Powder Coated Springs and Spring Perch (TRD Red), JBA Upper Control Arms, Bilstein 5160's w/Billet Aluminium Reservoir Brackets, +2 Coachbuilder Shackles, Diff Drop Kit, Carrier Bearing Drop Kit, Brakeline Extensions, ABS Extension, Poly Bushings for Leafs, Coachbuilder Shims (2 Each Side), Coachbuilder Bumpstop Extensions, TRD Rear Sway Bar, TRD Front Sway Bar, Air Lift 5000 airbags w jounce bumpers, Daystar Airbag Cradles WHEELS AND TIRES: BF Goodrich KO2's 275/70/r18, BORA wheel spacers 1.25", TRD Wheel Caps,TRD Valve Stem Caps, Spare Tire Lock PERFORMANCE: Bullydog GT Tuner(Performance Tune), TRD Intake, TRD Dual Exhaust (with Modified Exhaust Hangers for Levelling Tail Pipe),TRD Brake Pads, TRD Oil Cap (US), TRD Radiator Cap, TRD Oil Filter, Optima Yellow Top Battery,GP Battery Distribution Blocks, StopTech Slotted Cryo Treated Rotors, Goodridge G-Stop Steel Braided Brake Line Kit PROTECTION: PNP Engineering Type 4 Rock Sliders (With Full Dimple Plate) ,ADD Stealth Fighter Rear Bumper w Red/Blk Shackles and Custom Stomp Pad, TRD Skid Plate with ReadyLift Spacer Kit, Victory 4x4 LCA Skid Plates, JOMAX ABS Sensor Armor, Rear Diff Breather Mod, ARK splash guards INTERIOR: Husky Liners X-Act (Front and Full Coverage Rear and Front Weather Beater Trans Hump), Interior LED Bulbs, WheelSkins Genuine Leather Steering Wheel Cover(EuroPerf), Clazzio Genuine Leather Seat Covers(BLK/DRK GRYwith custom stitching and embroidered headrests), Clazzio Seat Heaters (Front and Rear), Entune Startup Screen MOD, Entune Off Screen Mod, Tinted Windows with Windshield Visor, AJT Key Fobs,Eagle Claws Floor Mat Clips, Bodyglove Visor Organizer,Custom Door Cup Inserts, Glass Break Sensor,AJT Radio Knobs, Custom Dior Cup Inserts EXTERIOR: Full Debadge, LED Brake Light Bulbs, LED Rear Turns, LED Reverse, LED Plate Lights, LED Cargo Lights, LED Third Brake Lights, LED Front Marker Lights, LED Fog Light Bulbs, Lamin-X Fog Light Covers (Amber),2018 OEM LED Headlights, iHacker harness, VLED Universal Puddle Lights, VLED Interior Footwell Lighting (Front and Rear),VLED Extreme Amber Fornt Turns, NSV Knight Rider Light bar, Baja Designs Sport Squadron Pods in Rear Bumper (Driving/wide), Painted Red Tow-hooks, Bed Rail System, Blind Spot Mirrors, Hitch-safe, Tail-gate lock, EAG Raptor Grille, Custom Grille Badge,Full Vinyl Wrap (Matte Black/Matte Pine Green Mettalic), Charvonia Designs Tie Bed Tie-Downs, Bull Ring Bed Rail Anchors, Line-X, Tundra Bed Mat, Bakflip F1 Bed Cover SOUND: Noico 80Mil Sound Deadening and Noico 170 Mil Thermal Insulation (All 4 Doors, Roof, Floors, Rear Panel, Dash). Hertz Uno K170's Component Speakers (Front Doors with Upgraded Sail Panels), Hertz Uno K170 Coaxial Speakers (Rear Doors), JBL C1-075ct Tweeters (Total 4) in Side Dash and Center Speaker, JBL Stadium 5 Amp w/Remote Bass Adjustment Knob and Amp Rack, 12" Infinity Reference Subwoofer in Custom Enclosure w/ “TUNDRA” Logo, Fast Rings Foam Speaker Rings System(4 Doors), Fix 86 DSP
    Hertz was the worst rental car company I ever used. Not sad to see them go. I feel the free capitalistic market requires business to close for new blood to enter. If the company hasn’t planned for an emergency then “oh well, see you later!”. In my household we have an emergency fund and we’re expected to weather these emergencies. If a multi billion dollar company can’t plan for a few months of bad business, especially when one persons salary is almost 20 million dollars, then that’s the price to be paid. Dinosaurs must die....
     
    Last edited: May 26, 2020
  22. May 26, 2020 at 10:33 AM
    #22
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    This^

    Back in 2013 the Institute for Policy Studies did a study on 500 corporations and their CEOs. They expected the percentage of sub-par poorly performing CEOs to be around 15% but found that the number was over twice as high at 38%.

    Some of the CEOs in the study were in the top 25 highest paid in the country. One in particular was the head of the Lehman Bros (largest bankruptcy in history) and he had made the top 25 distinction for 8 years in a row.
     
  23. May 26, 2020 at 10:39 AM
    #23
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    Yes, and what's just as bad are the boards of these companies never stopping to ask if a particular CEO is more concerned about lining their own pockets or the pockets of shareholders...in the end, they're just as responsible.
     
  24. May 26, 2020 at 10:42 AM
    #24
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    We don't get upset because if they fail to perform thousands of employees don't lose their jobs. When a ballplayer is cut from the team he doesn't immediately go ask for a gov't handout. If he sucks badly enough for long enough he is never hired again. Can't say the same about some of these crooked ass CEOs
     
  25. May 26, 2020 at 10:46 AM
    #25
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    Some companies can manage debt very well as long as the cash continues to flow in, but the virus scare stopped the cash flowing in to many different companies large & small exposing all sorts of weakness. Hopefully people will learn from this experience, and be better prepared for the next event.


    The CEO's compensation made me want to look at my former girlfriends yearly compensation package for 2017 through 2019, I'd say she did very well for herself.


    Fiscal Year Ended in 2017

    $1,019,231
    Base Pay

    $3,109,000
    Bonus + Non-EquityIncentive Comp

    $4,128,231
    Total Cash Comp

    $20,000,113
    Stock Award Value

    $0
    Option Award Value

    $20,000,113
    Total Equity

    $87,728
    Total Other

    $24,216,072
    Total Compensation
     
    Boosted4runner likes this.
  26. May 26, 2020 at 10:47 AM
    #26
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    But they are all out of work because of the virus.
     
  27. May 26, 2020 at 10:48 AM
    #27
    T-Rex266

    T-Rex266 [OP] Elon approved Staff Member

    Joined:
    Jan 5, 2014
    Member:
    #6
    Messages:
    155,878
    Gender:
    Male
    former ex? where is she now?


    *asking for a friend:rofl:
     
  28. May 26, 2020 at 10:50 AM
    #28
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    Happily married with children living in one of her homes, and she retired from that company April of last year
     
    T-Rex266[QUOTED][OP] likes this.
  29. May 26, 2020 at 10:52 AM
    #29
    texasrho83

    texasrho83 DGAF#1

    Joined:
    Mar 30, 2017
    Member:
    #7025
    Messages:
    8,720
    Gender:
    Male
    First Name:
    Charles
    Conroe TX
    Vehicle:
    2016 DC MGM 4x4
    See build link
    And still doing quite well I'm sure.
     
    Darkness likes this.
  30. May 26, 2020 at 10:53 AM
    #30
    Rex Kramer

    Rex Kramer Vinyl Spinner

    Joined:
    Apr 9, 2017
    Member:
    #7181
    Messages:
    6,620
    Gender:
    Male
    Georgia
    Vehicle:
    2002 4.7L RCLB 4X4 2007 5.7L RCSB 4X2
    That really depends on their savings & overhead.
     
Thread Status:
Not open for further replies.

Products Discussed in

To Top