The car rental company Hertz filed for bankruptcy recently, which shocked not only investors but their customers also. The famous car rental company Hertz has principal offices in Estero, Florida, and has more than 10000 franchises all over the country. Before filing for bankruptcy, the company has reportedly going to pay a considerable amount of last bonuses to its employees. According to contracts entered with the US Securities and Exchange Commission, the car rental company agreed with 340 employees, which is just three days before declaring bankruptcy.
This agreement specifies the bonuses which the company has to pay the mentioned workers. The company explained why they had given these bonuses to their employees because they wanted to make sure everyone is safe during the hard times of the coronavirus outbreak. During the hard times of pandemic, many workers are not earning much money, and the board thinks these bonuses will help them and their families. The bonuses to employees of Hertz is a mutual decision made by executives of the company. The CEO of Hertz received approximately $700000; the Chief Financial Officer Jamere Jackson got paid $600000.
The car rental company made this outstanding yet surprising decision of spending a considerable sum of money to employees is quite astonished during these hard times. The bankruptcy filing shows that the company is not required to sell off its vehicle assets, which will be essential for future operations if there are going to be any. Many analysts think Hertz would be able to get rid of many vehicles as part of the restructuring program. Hertz will be able to use the current cars at their own need, and dispose of it if the board thinks it’s necessary.