Hertz's stock sinks as CFO and COO to leave after less than a year in the roles

By Tomi Kilgore

Car rental company names Spirit Airlines CFO as its new CFO, starting by the end of June

Shares of Hertz Global Holdings Inc. slid further into record-low territory Monday after the car-rental company said its chief financial officer was leaving the company, less than a year after taking the job.

Alexandra Brooks, who became CFO of the car-rental company (HTZ) in July 2023, will be succeeded by current Spirit Airlines Inc. (SAVE) CFO Scott Haralson, who will join Hertz by the end of June.

The CFO change comes less than three months after Hertz announced the departure of its chief executive, following a failed strategy on electric vehicles. The new CEO, Gil West, joined Hertz in April.

In addition, Hertz said Chief Operating Officer Justin Keppy was resigning, effective Monday, after just six months in the role.

Hertz's stock sank 6.4% in morning trading, after closing Friday at a record low of $4.36. The stock has plunged 60.7% year to date. The company has been selling off thousands of EVs due to weak demand.

Read: Hertz's stock is having an awful week, and BofA adds to investors' misery.

On Monday, Hertz said Brooks, who joined Hertz in 2020 as chief accounting officer, was leaving "to pursue other opportunities." She'll stay with the company until the end of June to help ensure an orderly transition.

The company didn't give a reason for Keppy's departure.

Incoming CFO Haralson has been CFO of Spirit Airlines since October 2018, after joining the discount airline in August 2012.

"His deep expertise in financial management and leveraging the capital markets to drive business transformation will be invaluable to Hertz as we rotate our fleet, deliver operational excellence, build greater cost discipline and undertake other key initiatives to improve our financial performance," said CEO West.

Spirit Airlines named Controller Brian McMenamy as interim CFO, effective June 14. The company said it will start a search for a permanent replacement, with the help of an executive search firm.

Spirit Airlines has seen its own troubles, as the stock closed at a record low of $3.32 on May 7. The stock tumbled in mid-January and has been sliding further since then, amid concerns about the air carrier's financial stability after its merger with JetBlue Airways Corp. (JBLU) fell apart because of regulatory pushback.

The stock was up 1.6% in morning trading Monday, but has plunged 77.4% year to date.

-Tomi Kilgore

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06-03-24 1022ET

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