Paul Stone, who was just promoted to CEO three days before the retention bonuses were awarded, got $700,000 under the plan. Chief Financial Officer Jamere Jackson got $600,000, while Chief Marketing Officer Jodi Allen got about $190,000.
The company did not respond to a request for comment, but said in its SEC filing that the payments are justified by financial and operational uncertainty that the company and its employees face. Hertz also declared the payments necessary because of the substantial additional efforts undertaken by the company’s key employees with a reduced work force, and the risks to the company if key employees decide to leave.
Additional job losses are probably coming at Hertz. The company’s press release Friday night said it planned to close an undisclosed number of its locations away from airports. It had 2,600 such locations in the United States as of last year.
Bankruptcy law makes it difficult for companies that have filed for bankruptcy to pay severance to employees who lose their jobs after a bankruptcy filing. Hertz has filed a motion with bankruptcy court seeking authority to continue to pay severance payments to employees who were let go before the filing.
Hertz still owes about an average of $4,300 in termination pay to 2,500 employees, or just under $11 million in total. It said paying that termination pay will maintain goodwill with employees, reduce the risk of litigation and make it easier to rehire some of those employees once more normal levels of travel resume.