Hertz Appoints CEO as COVID-19 Causes Crisis
Vehicle rental company Hertz has selected Paul Stone as its new President and CEO, replacing Kathryn Marinello, who has resigned. Stone begins his new position immediately and will also serve on the company’s Board of Directors
Marinello will stay on in a consulting role for up to one year to ensure a smooth transition.
As Hertz’s CEO, Stone will be a central part of the effort to turn the struggling company around. He will likely need to rely heavily on his prior experience running Hertz’s U.S. rental business, which accounts for almost 80% of the company’s total revenue.
Stone initially joined Hertz in March 2018 as the company’s EVP and Chief Retail Operations Officer. In this role, he simplified Hertz’s North American car rental operations, re-energized and developed talent, and elevated service standards. He previously served as SVP and Chief Retail Officer at outdoor outfitter Cabela's and worked in various leadership positions at Walmart’s member-only retailer Sam's Club for over 27 years.
In a company press release, Stone said, "It is a tremendous honor to have the opportunity to lead Hertz. I thank Kathy and look forward to working with my colleagues to do what Hertz people do best – anticipate where transportation, mobility and technology are going and innovate to best serve our customers, stakeholders and communities."
Hertz's Chairman Henry Keizer said, "Paul brings a customer-centered approach to growing the business that is driven by process excellence and employee engagement. Having successfully run our largest business segment for the last two years, Paul helped strengthen our brands by elevating service standards across the North American car rental operations."
Hertz’s executive changeup comes during a rough time for the company, as it faces an uncertain future, which includes the possibility of bankruptcy. In response to the coronavirus, Hertz has conducted around 20,000 employee furloughs and lay-offs worldwide and canceled remaining new vehicle orders for its US rental fleet.