Dollar Thrifty Slashes Pay, Benefits

A slow travel market, weakening economy and disappointing fourth quarter officials say are prompting Tulsa-based Dollar Thrifty Automotive Group Inc. to make major salary and benefit cuts, Tulsa World reports.

In its third retrenchment of the past year, the rental car company is suspending its matching contributions to employees’ 401(k) retirement plans. It is also suspending merit pay increases for executives and enacting 21 percent salary cuts for executives at the vice president level and above.

Employees were notified of the cuts during the past week in a memo from President and CEO Gary Paxton.

Dollar Thrifty employs 8,500 people worldwide.

After outlining the salary and benefit cuts, Paxton said company executives will present a plan to the board of directors that will reinstate pay and benefits if the company meets specified earnings targets.

According to Tulsa World, Dollar Thrifty shares recently closed at $20.73, up 23 cents for the day.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Another Ridiculous “Used Fleet Vehicle” Scandal

While media reports concentrate on the sting and the “outrage,” where’s the empirical evidence that fleet vehicles are less mechanically sound than vehicles sold from private owners?

Will IoT Herald a New Era in Fleet Efficiency?

With the ELD rule finally in effect, small fleet operators need to hunt for new efficiencies. In transportation logistics, Internet of Things (IoT) systems could have similar lasting impacts as telematics.

Will Cars Become Transportation Appliances?

The cars are still the stars, but this year’s L.A. Auto Show revealed an auto industry at a crossroads.

Job Finder: Access Top Talent. Fill Key Positions.

>