Hertz Global Holdings Inc. wants to hand out a further $14.6 million in bonuses to executives, months after the car-rental company shelled out $16.2 million in extra pay meant to keep executives from leaving as the Covid-19 pandemic upended the travel industry, WSJ Pro Bankruptcy reported. Hertz filed for chapter 11 protection in May, its business shredded by pandemic-related restrictions. Before filing for bankruptcy, Hertz laid off thousands of employees and handed out retention bonuses to key leaders. The move was part of a trend in corporate bankruptcy, where distressed companies hand out retention bonuses, or “stay pay,” just before they file for bankruptcy protection. Retention payments are almost impossible for top executives to get after a company files for bankruptcy. Chief Financial Officer Jamere Jackson resigned this month and forfeited his retention bonus. Hertz is sealing much of the information about which employees are in line for the latest round of bonuses. The judge overseeing Hertz’s bankruptcy would need to sign off on the new round of pay enhancements, which the company detailed in court papers filed on Thursday. They are styled as “incentive” bonuses, which are supposed to drive performance.
