In an exceptionally rare clawback case, The Hertz Corp. has sued its former general counsel, Jeffrey Zimmerman, and two other top executives to recover over $70 million the company says it paid them in incentive pay and a “golden parachute” severance package, plus over $200 million in legal fees and other costs related to misstating company income.
Hertz does not accuse Zimmerman of doing anything illegal, but the complaint alleges he “failed to stop, effectively counterbalance, or otherwise offset or report to Hertz’s board of directors” about actions of former CEO Mark Frissora, which led to serious accounting misconduct. Frissora is a co-defendant in the suit, along with then-chief financial officer Elyse Douglas.Mark Paul Frissora former CEO of Hertz Corp. Photo: Caesars Entertainment via Wikimedia Commons
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