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Hertz sues former executives to recoup compensation

Tammy Whitehouse | April 2, 2019

Car rental company Hertz is suing former executives to recoup losses related to its 2015 restatement to correct aggressive accounting.

In a complaint filed in U.S. District Court in New Jersey, Hertz says it wants to take back $70 million in incentive compensation paid to Mark Frissora, the company’s former CEO, Elyse Douglas, former CFO, and John Jeffrey Zimmerman, former executive vice president and general counsel. The company also is seeking more than $200 million in damages, accusing the three of inappropriately inflating income in a way that ultimately forced the company to restate its financial statements for fiscal years 2011 through 2013.

Hertz says the clawback policies contained in its compensation agreements entitle the company to recover compensation that was paid based on financial results that had to be restated as a result of mismanagement. The...

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