Jana Partners, the activist investment firm that is the second-largest shareholder of Hertz, sent a blistering letter to the car-rental giant's board of directors recently to urge them to hire a new CEO.
Hertz still has not hired a full-time replacement for Mark Frissora, the CEO who resigned in September following a string of accounting and operational problems at the company. Frissora engineered the relocation of Hertz from New Jersey to Southwest Florida last year, where it is building an $85 million corporate campus in Estero.
In its letter to the board, Jana Partners Managing Partner Barry Rosenstein included a chart showing Hertz's total shareholder returns over time compared with its competitors. He argues the company should hire former Dollar Thrifty CEO Scott Thompson to lead the company.
“The board now has the opportunity to finally unlock Hertz' enormous value creation potential and to regain the company's lost credibility with investors, but doing so will require choosing a CEO who is a proven value creator in the car rental industry and has the necessary skills and experience,” Rosenstein writes.