Hertz Global Holdings Inc. is demanding that ex-CEO Mark Frissora and other former senior managers return at least $70 million of incentive compensation for their roles in an accounting scandal five years ago.
The car-rental chain accused the former executives of pressuring employees to use fraudulent accounting techniques to inflate income and earnings, according to a March 25 lawsuit. The alleged misconduct spurred a federal investigation and prompted Hertz to restate several years of financial results, costing the firm more than $200 million.
The restatement “was triggered by the gross negligence and misconduct of Hertz's senior executive officers” who set the wrong tone at the top, the company alleged. Hertz filed the lawsuit after Frissora, ex-CFO Elyse Douglas, and J. Jeffrey Zimmerman, who was general counsel, refused to return incentive compensation tied to the erroneous results.
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