- Signs for push-out forces
- After about two years on the job
- Thanks and good wishes for Tague
- Kathy Marinello takes over
(management-change.com) — Estero, Florida, December 13, 2016 — John Tague, chief executive of Hertz, leaves. It is a change at short notice. As announced by Hertz Global Holdings, Inc. in a news release and in a regulatory filing published on Tuesday, December 13, 2016, John P. Tague leaves the post as Chief Executive Officer at the car rental company after about two years on the job, effective January 02, 2017.
No company wants a CEO to flame out in the first years.
Tague’s duties are taken over by Kathy Marinello, currently Senior Advisor at Ares Management LLC.
The fact that Tague’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider doesn’t have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
“Lead Hertz to its full potential”
Tague’s move is explained as follows. Marinello said in a fairly blunt statement: “I am honored to have been selected to lead Hertz to its full potential at a time of unprecedented opportunity for the Companies.”
Carl C. Icahn, Chairman of Icahn Enterprises L.P., the Company’s largest shareholder, said, referring to Marinello: “She is the right person to lead Hertz as we move forward.”
Hertz said: “On December 12, 2016, John Tague stepped down as President and Chief Executive Officer and as a member of the boards of directors of Hertz Global Holdings, Inc. … and The Hertz Corporation …, effective January 2, 2017.”
Precise information about the future plans of Tague was not immediately available.
Share price decline
The change follows a sharp decline in the share price of Hertz Global Holdings, Inc. since September 2016.
Carl Icahn holds 35 percent stake
Carl Icahn reported a 35 percent stake in Hertz Global Holdings, Inc. Carl Icahn is an activist investor.
Chaired by Henry R. Keizer
Hertz Global Holdings, Inc. is chaired by Henry R. Keizer.
In connection with Fayne Levinson’s departure from the boards of directors of the Companies, the boards of directors of the Companies have appointed Henry R. Keizer as Independent Non-Executive Chair of the Companies.
Keizer has served as a director of Hertz Holdings and Hertz since October 2015.
On the job as CEO since 2014
John Tague was named President and Chief Executive Officer, and a member of the Board of Directors, of The Hertz Corporation in November 2014.
Tague served in a number of senior executive leadership roles at United Airlines, Inc. and UAL Corporation from 2003 through 2010, including President (2009-2010) and Executive Vice President and Chief Operating Officer (2008-2009).
Between 2003 and 2008 he served as Executive Vice President of Customers (2003), Executive Vice President of Marketing, Sales and Revenue (2004-2006), and Executive Vice President and Chief Revenue Officer (2006-2008).
Just prior to joining Hertz, Tague served as Chairman and Chief Executive Officer of Cardinal Logistics Holdings.
The Company was created by the merger between Cardinal Logistics Management, Inc. and Greatwide Logistics Services, LLC, where Tague had served as Chief Executive Officer since 2011.
In addition to the Hertz Board of Directors, Tague currently serves on the Board of Directors of Choice Hotels International, Inc.
He previously served on the Board of Directors for Reddy Ice Inc., Pacer International, Inc., Orbitz, ATA and United Airlines.
Marinello has been elected to the Boards of Directors of the Companies to replace Tague in early January.
Signs for push-out forces
It is not completely certain what forces eventually triggered John P. Tague’s move.
The Push-out Score™ determined by management-change.com suggests that push-out forces may have contributed to the management change.
Read the full story in the management-change.com report 47.2016 ($).