Hertz’s New Employee Bonus Plan Still Offensive, Watchdog Says

Hertz Corp.‘s renewed bid to pay certain employee bonuses remains problematic despite the bankrupt car rental giant’s abandonment of a larger bonus plan, a group of retired executives and a federal bankruptcy watchdog said.

The company’s new request to a Delaware bankruptcy court seeks to pay senior management $8.2 million and prevents 11 of Hertz’s top executives from participating. The proposal replaces an earlier one that would have paid 14 top executives $5.4 million and managers $9.2 million, a plan the bankruptcy judge called “offensive.”

The revised incentive program doesn’t rectify the offensive nature of the bonuses, considering that ...