Jana Partners said Scott Thompson, the former CEO of Dollar Thrifty Automotive Group is a “clear choice” to lead Hertz Global Holdings, Inc. (NYSE:HTZ).
The activist hedge fund said the CEO succession is a very important issue confronting the board of directors of Hertz Global Holdings, Inc. (NYSE:HTZ), and “the time to make a decision is long overdue.”
Jana Partners beneficially owns 7% of the outstanding shares of Hertz Global Holdings, Inc. (NYSE:HTZ). The activist hedge fund is headed by Barry Rosenstein.
Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More
Jana Partners says shareholders suffered from Hertz’ missteps
Jana Partners said the shareholders of Hertz Global Holdings, Inc. (NYSE:HTZ) endured its accounting issues, mishandling of the integration of the Dollar Thrifty Automotive, the disruptive headquarters relocation and its inability to forecast and communicate with Wall Street over the years.
The activist hedge fund also added that shareholders suffered from the company’s operational missteps in equipment rental business and operational issues in fleet management, service quality and pricing discipline.
Furthermore, Jana Partners said shareholders were hurt by the significant underperformance of the stock price of Hertz Global Holdings, Inc. (NYSE:HTZ) compared with its closest competitors in the car industry.
Over the past year, Hertz’ stock price declined 12% while Avis Budget Group Inc. (NASDAQ:CAR) and United Rentals, Inc. (NYSE:URI) gained 73% and 66%, respectively.
Thompson is widely favored by shareholders
Jana Partners emphasized that now is the opportunity for the board of directors of Hertz Global Holdings, Inc. (NYSE:HTZ) to regain its lost credibility with investors, and to unlock its enormous value creation.
The activist hedge fund said the board needs to choose a CEO, who is a proven value creator in the car rental industry. Jana Partners said Scott Thompson has the ability to address the issues confronting Hertz Global Holdings, Inc. (NYSE:HTZ).
Jana Partners said Thompson has deep understanding of the car rental industry dynamics and strategies, and he is well-suited to help clean the company’s accounting fallout. The activist hedge fund noted that Thompson is a CPA and previously served as CFO of a public company.
Thompson also showed his ability to recruit and retain talents and has a proven record of improving service levels, therefore he can start improving Hertz’ brand.
Jana Partners also believed that Thompson can restore the company’s credibility with investors given the fact that he was able to generate an annualized return of around 200% during his tenure as CEO Dollar Thrifty Automotive.
Jana Partners said Thompson was widely favored by shareholders to become the next CEO of Hertz Global Holdings, Inc. (NYSE:HTZ).