Hertz Acquires Dollar Thrifty For $1.2 Billion
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Under investor pressure, Hertz names new CEO

Nov 20, 2014

Car rental company Hertz has named longtime airline industry executive John Tague as its next CEO.

Tague replaces Mark Frissora, who stepped down from the job in September amid accounting errors and the company's disappointing financial performance.

Tague was backed by Hertz investor Carl Icahn, according to CNBC. Icahn, who holds an 8.5% stake in Hertz (htz) and previously called for the ouster of his predecessor.

"I am happy to say that after listening to John's ideas concerning Hertz and evaluating what he has accomplished at United, I believe he ranks at or near the top of the group." he said on Twitter.

Before of being names CEO of Hertz, Tague served as president and COO of United Airlines (ual).

"I am honored to have been selected to lead Hertz to its full potential at a time of unprecedented opportunity for the Company and industry," Tague said in a statement. "I look forward to partnering with Hertz employees as we work to earn sustained industry leadership for the benefit of our shareholders, customers and team."

But hedge funds and analysts may not be keen on the decision, according to reports. Some were pushing for ex-Dollar Thrifty head Scott Thompson to take over. Meanwhile, Jana Partners said it may call for changes in Hertz's board if unhappy with the CEO choice.

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