Bankruptcy judge blocks Hertz ‘offensive’ executive bonus scheme
A judge presiding over Hertz Global Holdings’ bankruptcy restructuring slammed the company’s ‘offensive’ proposal to give top managers millions in bonuses.
US Bankruptcy Judge Mary Walrath ordered the firm to revise its proposal.
Walrath said Hertz had already made about $16 million in payments to retain executives before filing for bankruptcy protection in May.
Hertz wanted to pay another $15 million in bonuses to managers.
"The incentive plan has serious problems. It seems offensive to give senior executives bonuses when they were paid," Judge Walrath said, referring to earlier retention payments received.
Also, financial targets set for executives to receive bonuses must be stricter.
"I think more has to be established on why the employees who got their retention bonuses and agreed to stay with the company are not going to do their best to make sure this company survives and succeeds," Walrath said.
U.S. Trustee Andrew Vara already criticized Hertz’ proposed bonus structure, saying the targets were not tough enough.
Hertz filed for Chapter 11 protection in May.
Hettz caused controversy after announcing it planned to sell $500 million in stock which would potentially be worthless.
It scrapped the idea after concerns by the Securities and Exchange Commission.
Written by Ray Montgomery, US editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
TAP Air Portugal to operate 29 flights due to strike on December 11
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps