Thread regarding Hertz layoffs

We are still here thanks to super super priority 1.7b DIP loan “kindly” provided by Apollo that now has us in a head choke. We are burning that cash faster than you can spell “liquidation.” We are about to tap out and there will be enough assets for Apollo to get their 1.7b plus 8.5% interest back. The company narrative will be “we tried, but Covid was stronger” without any mention of misleading naive employees along the way.

That is correct.
All the forecasted dates were wrong.

First it was reported that the company would run out of cash during the 3rd quarter of 2020
Next it was the end of the year, December 2020
Then it was January 2021
Now it’s August 1st

Not sure but the company seems to keep chugging along

I better understand your point and agree with you.
Although the behavior to ask for 12 millions is outrageous in this context, the key point is the upcoming collapse.
I have been expecting it for months sadly and everything feeds that belief.
But I think the US will be protected and Europe will be the first to hit the ground...
If luck allows this company to survive, the employees won't because it will be so toxic that burn outs will fall like rain in Scotland.

I think that you don’t realize the court document post wasn’t a direct reaction to Paul the hero. Great piece, btw. It was aimed at outraged individuals writing about 12m and who is entitled to what, while the real story is upcoming liquidation. We may all know it, but it is the first time SMG deviates from usual BS “we will get through this.”

The targets set up such as EBITA and utlization can and will be manipulated. Lookwhat our friend MF did when he ran the ship. Even the lowest trainee at HLE knows how to manipulate their utilization numbers. We all know how "ethical" this senior team is. So don't be suprised if they post amazing numbers. How true they will be is another story.

I think you missed the sarcasm of the "Paul is a hero post".
Of course it is a forecasted collapse and they'll milk the sick beast before moving elsewhere.
Hertz is a dead end.

Read the feccking court filing before you write. Paul and 7 exec VP are set to make 560k each on the scheme, 42 bum lickers below 147k each. Relative to Frissora, Tague, Marinello, hell even to Kennedy, Best, Kupuswamy, Stuart, Foland and previous execs, it is nothing. Tied to EBITDA 324mil (in your dreams) and ute 82.2 (in a parallel universe where smart, capable people were leading Hertz and Covid was crushed). Hats off if they get a dime out of it.

All of you are missing the most important point. Half burried in the court document are incentivized, bankruptcy milestones. Last one worth 15% of the overall scheme is worded "Emergence or Sale of Substantially All Assets" with a date of Aug 1. In layman's terms, liquidation is very much an option and those 50 individuals will cash in. HertzStrong? Don't think so, more like HertzGone by Aug 1st.

Paul is such a hero.
He, who could get a better job anywhere, has decided to stay and save Hertz.
What a savior.

He is like a cash register employee who could become a movie star but decides to stay at the register of a bankrupt store to scan the items because he is the best cash register employee.
By doing that, this cash register is a hero.
Therefore just to wake up and go to work, this cash register will get a super cool bonus.
You have to keep in mind that the guy could have became Brad Pitt, George Clooney or Bob De Niro...just like Paul who could run Amazon, Tesla, Google or Microsoft...genius Paul.

Yep, these are the real heroes of the world.
The heroes aren't the nurses or people that are struggling and working hard with little salary to save lives...or the people trying to support their family the best they can while helping the community, all that with little bucks left at the end of the month.
No, it's guys like Paul and Bob S. and Jamere and Marinello (remember when she'd make fun of the Coronavirus and would talk about the beer...she wasn't scared about going to NYC...what a he–in!).

Yep our past and present leaders would put their guts and balls on the table to save the company. They would cut their salary to save as many employees as possible. They would take courageous decisions for the interest of the people that have invested so much time and sacrifices in this company (and for a miserable salary in most cases). Those employees that have made Hertz what it was...
Just because our leaders are so unique and will remain in the history books as exceptional individuals, of course they deserve their millions of bonus while the rest of the employees are miserable.
I am so happy we live in a world with great human values and high standards of morality.
I can't help but think about Frissora who was paid millions from Hertz, for what results? Another hero from the past.

It is still a mystery to me to see people support such inequalities...I wonder what has created this absence of smart analysis or excess of absurdity...

• anyway, humans are full of surprises and Paul can probably be reassured, as greedy and incompetent he is, as lame of a CEO he is, he will always have supporters.

Live is beautiful.

Hilarious, employee trying to justify a retention bonus for just doing their job? Paul likes to quote just do your job? Seems like false advertising to me.

It’s got to be difficult work trying to decide which locations to close, who to layoff, and how we can milk the last ounces of money from the company.

We know Hertz is a sinking ship. We are putting alot on the line by staying and working through the bankrupcy. Yes we can all walk away and find new roles elsewhere. But we have chosem to stay and put our carreers on the line. We need to be rewarded for this. This retention bonus is so I stay and keep fighting the fight. So don't blast the execs for this. We are just gettting what we are due for sacraficing our names and staying with Hertz.

Don’t get me wrong, I understand why some of the executives left. Why would they stay when they can get better salary and incentives from a more stable company. They’ve been with Hertz for less than 5 years. It makes more sense to jump ship. It’s a choice between job security/ ensuring a more stable future for their families vs saving Hertz.
It will take a selfless leader to turn things around. Someone who can rally and inspire the remaining employees to work harder and focus on future rewards.

The judge laughed off the last bonus request!?!?

Clearly you only read part of that story. Lol. Shortly after the bonuses were rejected, the request was revised. A couple days later the request was resubmitted and approved. All the bonuses have since been paid. You can Google it and see, it’s all public knowledge.

The bottom line is no matter which position you occupy in the company your first priority is most likely exactly the same as mine... Making decisions that put myself and my family first. Whether the company is in bankruptcy or not, people leave for better opportunities all the time. These bonuses are designed to incentivize them not to leave.
Just because you are paid a salary doesn’t mean you won’t leave a job for a better opportunity. That’s what people do every single day. We are all hired and expected to do our jobs for our salary... We also have the right to quit anytime we want especially for a better opportunity just as at the same time the company has the right to fire us at any time.

They aren’t paying these bonuses because people are doing a great job. Maybe they are, maybe they aren’t, but the bottom line is it’s very difficult to replace someone in an executive level position under the time crunch of a bankruptcy.

I do understand why people would see this as unfair and in a lot of ways it is, but at the same those people did whatever it took to put themselves in those executive level positions. Doesn’t matter if someone else could do their job just as well or better. If someone in a position instrumental to the restructuring of the company quits their job you can’t just go on indeed, hire somebody and say “Go get em.”

Not only because it’s difficult to transition into a position like that, but also because NOBODY in their right mind would come to a company that is in middle of the bankruptcy... So whoever does come is certainly not the most qualified candidate.

That’s why these bonuses aren’t intended to say good job. Whoever gets them has to sign a contract saying they will stay for a certain amount of time. If they quit prior to that date, they forfeit the entire bonus.

Even with the incentive bonuses there is no guarantee… After getting $650,000 after the bankruptcy to stay with the company until March 2021, our former CFO Jemere Jackson decided it was better to quit, give back the entire $650,000 and move on. He was given a considerably higher bonus and a higher salary and is now the CFO of AutoZone.

No matter how good or bad, right or wrong, The job of the CEO and the top people is to make whatever decisions you have to in order to save the company.

If you genuinely care about the company you "lead" then you would simply come to work every day and find every way possible to save it. You wouldn't keep coming in and asking every couple months for more bonus for doing what you're supposed to be doing and saving the damn company. Your salary already pays you for that. "Bonus" should actually be additional bonus for doing something well or making an achievement. Not a requirement for just doing what you must.
I understand other offers outside may be more attractive to these executives, but if you truly cared to save it, then s— it up and save the company and you can cash out big once you are successful again. The judge laughed off the previous bonus request, hopefully it will be the same this time.

I was just a lowly Car Sales employee laid off in November, but I do understand the need for these executive bonuses. The top executive level positions are occupied by people who are highly coveted. Our CFO Jemere Jackson was given a $650,000 bonus in the first round of executive bonuses. He then gave it back and left for a higher salary and a $1.2 million bonus at Autozone.

Why stay at a company with no guaranteed future when you have an offer to go somewhere else for more money AND NO stress that comes along with being the CFO of a company in a Ch. 11 bankruptcy?

Front line need to remain focussed on what matters, JD Power not exec bonus.

Winning that paid award is everything to Paul and his cronies, so while they cream the bucks, please keep focussed on the award, or they won’t hit the bonus targets??? 🤔

When’s car sales opening?

Top 50 deserve these bonuses. We are single handedly turning this company around. While the front line employees are appreciated, there are no real reasons to reward them more for just doing their jobs. Renting, returning, and cleaning cars just doesn't warrant additional bonus money.

It is so sad to see such greedy execs continue to take advantage of this iconic organization and drive it into the ground. This again clearly defines their objective to steal as much money before they go under. Give credit to Paul honestly I did not know he had the balls to do something like this.

You can almost hear them at that meeting. Hmm, we could increase the pay of frontline workers, or look to start hiring back the people we laid off, or we can give ourselves more cash before this POS collapses.

YGBSM

Sick.
Disgusting.
Greedy.
Nasty liers.
Cowards.
SOAB management.
I hate this company with its mafia management.
Scumbags!