Hertz paid its top 340 executives an average of $47,709 a few days before filing for bankruptcy.
Hertz distributed a total of $16.2 million before filing for bankruptcy protection. CEO Paul Stone, received $700,000, Chief Financial Officer, Jamere Jackson, received $600,000, and Chief Marketing Officer Jodi Allen got just under $190,000.
Retention bonuses are typically given to executives for bankrupt companies in order to prevent them from abandoning ship, but, it does leave the company open to public ridicule while acknowledging it will lay off hundreds of thousands of employees.
The car rental company gave reasons for the bonuses:
Hertz employees are face “financial and operational uncertainty” to the pandemic, which has had an “adverse impact on the global travel sector.” “key employees” have undertaken “substantial additional efforts” with “a reduced work force in response to an extremely challenging business environment.” Because of the bankruptcy, top executives have lost out on their annual bonus plan. There’s a risk that “key employees” may leave Hertz when the company needs them.
The rental company employs more than 38,000 people worldwide, but the company has announced that it will lay off 10,000 workers.
Photos by Getty Images