CNBC’s Jim Cramer put Hertz CEO Mark Frissora’s picture on his notorious Mad Money Wall of Shame and said, “Sir, as long as your remain CEO of Hertz, Avis does not have to try harder.”
Cramer slammed the CEO, who he says has “lost all credibility on Wall Street” for “snatching defeat out of the jaws of victory” and missing every opportunity to increase the value of his company. While hedge fund manager Larry Robbins got behind the stock on a prospective spin-off of one of its segments, the company announced that this deal would be delayed, and lowered guidance at a time when competitors like Avis are announcing winning numbers.
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The car rental industry has been strong, especially with consolidation that eliminates competition. However, Frissora has made sure that Hertz has little to show for it. Last year, he blamed government sequestration for the decline, and this year, he has said car recalls are the cause of lackluster performance.
Cramer is confident that Frissora might be on his way out, after the announcement of the retirement of a board member who has been a Frissora backer. In addition, Carl Icahn owns a significant position in the company, and given his penchant for activist investing, might pressure a shake-up. Cramer believes that Scott Thompson, former CEO of Dollar Thrifty, would be a good replacement for Frissora, and added he predicts the stock could pop 10% if Frissora leaves as CEO.
