Hertz CEO steps down amid turnaround efforts

Hertz (HTZ) CEO Mark Frissora is stepping down, citing personal reasons, the company says.

Brian MacDonald, CEO of Hertz Equipment Rental Corp., will serve as interim CEO. Linda Fayne Levinson, independent lead director, has been appointed independent non-executive chairman.

Hertz has suffered from its August announcement that it would review its earnings and correct financial statements from the last three years because of accounting errors. It has delayed its second-quarter filing as a result.

The company also revised its forward guidance to "well below" the guidance it issued in March.

Since then, several activist investors, notably Carl Icahn, have taken large stakes in the company.

Hertz shares were up 0.8% to $28.70 in morning trading.

Hertz, based in Park Ridge, New Jersey, said that it has started the search process for a permanent CEO. Frissora had served as CEO since January 2007.

The company is in the process of trying to turn its business around. MacDonald has led turnarounds at companies including Sunoco and Isuzu Motors.

Hertz said Monday that it is still committed to the planned separation of its equipment rental business into a separate, publicly traded company and expanding its off-airport rental business, among other initiatives.

Contributing: The Associated Press