Who Owns Hertz Global Holdings Company?

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Who Owns Hertz Global Holdings?

Hertz Global Holdings, a major player in vehicle rentals, filed for Chapter 11 bankruptcy in May 2020 due to the pandemic's impact on revenue. This event significantly altered its ownership landscape, underscoring the importance of knowing a company's owners for strategic direction and stability.

Understanding the ownership of Hertz Global Holdings is crucial, especially after its bankruptcy filing. This insight helps in grasping the company's future direction and financial health.

Following its emergence from bankruptcy in June 2021, Hertz Global Holdings is now a publicly traded company. Its ownership is distributed among its shareholders, with major institutional investors often holding significant stakes. Analyzing the Hertz Global Holdings BCG Matrix can provide further insights into its market position and strategic investments.

Hertz Global Holdings traces its origins back to 1918 when Walter L. Jacobs, at the young age of 22, founded Rent-a-Car Inc. in Chicago with a modest fleet of twelve Model T Fords. His innovative approach quickly saw the business grow significantly.

Founding of Rent-a-Car Inc.

Walter L. Jacobs established Rent-a-Car Inc. in Chicago in 1918, starting with just twelve vehicles.

Rapid Early Growth

Within five years, the company achieved annual revenues of approximately $1 million and expanded its fleet to 600 cars.

Acquisition by John D. Hertz

In 1923, John D. Hertz acquired the burgeoning rental car business, renaming it Hertz Drive-Ur-Self System.

Jacobs' Continued Role

Despite the acquisition, Walter L. Jacobs remained president and COO until his retirement in 1961.

Early Ownership Structure

Specific initial equity splits are not publicly detailed, but the acquisition marked the first major ownership change.

Integration into Conglomerate

The business became part of a larger transportation entity under John D. Hertz's ownership.

The acquisition by John D. Hertz in 1923 represented a pivotal moment, integrating Walter L. Jacobs' successful rental car operation into a broader transportation framework. While the exact details of the initial ownership percentages and any early financial agreements are not widely publicized, Jacobs' continued leadership as president and chief operating officer of Hertz Drive-Ur-Self System until his retirement in 1961 indicates a collaborative transition of operational control following the acquisition. This early period laid the groundwork for the company's future expansion and solidified its place in the automotive services industry, aligning with the broader Mission, Vision & Core Values of Hertz Global Holdings.

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The ownership of Hertz Global Holdings has seen significant shifts since its founding, evolving from individual ownership to corporate control and private equity investment, ultimately returning to public trading with a new set of major stakeholders.

Following its emergence from Chapter 11 bankruptcy in July 2021, Hertz Global Holdings has seen a notable shift in its major stakeholders, with institutional investors playing a prominent role. This period of restructuring, supported by significant new equity capital, aimed to bolster the company's financial health and position it for future growth. Understanding the current Hertz ownership structure is key to grasping the company's strategic direction and market performance.

Key Stakeholders and Recent Developments

Recent developments indicate a significant concentration of ownership among major institutional investors, influencing the company's strategic direction. The evolving Hertz Global Holdings ownership breakdown reflects a dynamic market and investor confidence.

• As of early 2025, institutional investors are among the largest Hertz shareholders.
• Pershing Square Holdings, led by Bill Ackman, announced a 19.8% stake in Hertz in April 2025.
• This stake was acquired through direct share ownership and total return swaps.
• The acquisition of a substantial stake by Pershing Square highlights the influence of major individual and institutional investors on Hertz Global Holdings.
• The current ownership structure of Hertz Global Holdings Inc. is largely influenced by these large investment firms.
• For insights into how such companies strategize, explore the Marketing Strategy of Hertz Global Holdings.

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As of May 21, 2025, Hertz Global Holdings' Board of Directors consists of 11 members, strategically divided into three classes to ensure staggered terms. This structure is designed to uphold the company's commitment to advancing the long-term interests of its stockholders, reflecting robust corporate governance practices.

Hertz Global Holdings is currently classified as a 'controlled company' under Nasdaq regulations, indicating a significant concentration of voting power. Each share of Hertz common stock carries one vote on all matters brought before stockholders. Director elections are decided by a majority of the votes cast, provided a quorum is present, though contested elections follow a plurality rule. Cumulative voting is not permitted, meaning votes cannot be pooled for a single director. For most other corporate actions, a majority of the votes cast by shares entitled to vote and represented at the meeting is required for approval, assuming a quorum is met.

Key Governance and Voting Insights

Understanding Hertz Global Holdings' ownership structure and voting mechanisms is crucial for investors. The company's governance framework emphasizes stockholder interests through its board structure and voting procedures.

• Hertz Global Holdings Inc. ownership is influenced by its classified board structure.
• The Hertz board of directors is elected annually, with terms staggered over three years.
• Hertz shareholders have one vote per share, impacting decisions on director elections and other proposals.
• The company's status as a 'controlled company' under Nasdaq rules highlights concentrated voting power among Hertz shareholders.
• Major investors, such as Pershing Square Holdings, can exert considerable influence through their voting power and engagement with the board, impacting Hertz stock ownership dynamics.

At the 2025 Annual Meeting on May 21, 2025, stockholders confirmed the election of four director nominees for three-year terms. Additionally, the appointment of Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025, was ratified. An advisory vote on the compensation of named executive officers also received approval. While specific individuals or entities with disproportionate control through special voting rights or golden shares are not explicitly detailed in recent filings, significant stakes held by investors can translate into substantial voting influence. For a deeper understanding of the company's journey, a Brief History of Hertz Global Holdings provides valuable context.

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In recent years, Hertz Global Holdings has undergone significant shifts in its ownership structure and strategic focus, particularly following its emergence from Chapter 11 bankruptcy in July 2021. New equity capital exceeding $5.9 billion was secured from prominent investors, substantially reducing corporate debt by nearly 80% and reshaping the Hertz Global Holdings owner landscape.

A key development impacting Hertz ownership trends has been the strategic pivot away from a large electric vehicle (EV) fleet. Initially aiming for 100,000 Teslas, Hertz began reducing this by late 2024 and early 2025 due to higher-than-anticipated depreciation and maintenance costs. This resulted in substantial financial impacts, including a $2.9 billion net loss for the full year 2024 and a $443 million net loss in Q1 2025, with revenues falling 13% to $1.81 billion. Despite these challenges, the company is focused on fleet optimization, with management expecting depreciation per unit to be below $300 in Q2 2025. The company also secured extended revolving credit facility commitments totaling $1.7 billion to March 2028 and issued $1 billion in new vehicle-backed notes in May 2025, indicating ongoing financial management and demonstrating the current Hertz Global Holdings owner base's commitment to its financial stability.

EV Fleet Strategy Shift

Hertz is significantly reducing its electric vehicle fleet due to financial challenges. This move aims to mitigate losses from depreciation and maintenance costs.

Financial Restructuring and Debt Reduction

Emerging from bankruptcy, Hertz secured over $5.9 billion in new equity. This resulted in a debt reduction of nearly 80%, strengthening its financial position.

Activist Investor Interest

Pershing Square Holdings acquired a 19.8% stake in Hertz as of April 2025. This indicates growing interest from activist investors in the company's direction.

Fleet Modernization Efforts

As of Q1 2025, over 70% of Hertz's U.S. rental fleet is 12 months old or newer. This reflects a strategy focused on fleet age and condition management.

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