Former Hertz Chief Beats Executive Compensation Clawback Lawsuit

Former Hertz Corp. chief executive Mark Frissora defeated the company’s lawsuit seeking to claw back his incentive compensation following his 2014 resignation in connection with an accounting scandal.

Hertz accused Frissora of violating the company’s clawback policies on incentive compensation and its standards of business conduct. But none of these policies are binding, standalone contracts that the company can enforce through a breach-of-contract action, Judge Evelyn Padin of the US District Court for the District of New Jersey said Monday.

The lawsuit sought to recoup about $56 million in compensation paid to Frissora and co-defendant John Zimmerman, who previously served ...