Avis General Counsel Michael Tucker Departs Amid Cost Cutting, Board Shakeup
"Michael had a successful career of nearly 10 years with the company, and we mutually agreed that now was an appropriate time to transition," the car rental company said in a statement to Corporate Counsel.
March 24, 2020 at 05:28 PM
4 minute read
The original version of this story was published on Corporate Counsel
Avis Budget Group Inc. is saying goodbye this week to veteran general counsel and executive vice president Michael Tucker as the company faces novel coronavirus-related revenue losses and upper management changes.
Tucker will be replaced by corporate secretary Jean Sera, who has been with Avis since 2006.
In a statement to Corporate Counsel on Tuesday, Avis said, "Michael had a successful career of nearly 10 years with the company, and we mutually agreed that now was an appropriate time to transition. During his tenure, Michael developed the legal function and positioned it for future success. Pursuant to the terms of his agreement, Michael will remain available to assist in transition through the end of 2020."
A March 20 filing with the U.S. Securities and Exchange Commission said, "The company thanks Mr. Tucker for his contributions during his tenure, which began in April 2010, and wishes him well in his future endeavors." It said his last official day is March 27.
The filing said the Parsippany, New Jersey-based company and Tucker entered into a separation agreement March 20 "in accordance to the terms of Mr. Tucker's current agreement with the company."
The current agreement, according to a March 26, 2019, financial filing shows that Tucker apparently is entitled to between $2.4 million and $2.6 million in severance.
Other filings show he was earning about $500,000 in salary plus stock and incentive awards totaling around $1.2 million in annual compensation.
A 2018 article in Corporate Counsel told how Tucker led his company to reduce its load of law firms from 700 to 7, while cutting legal fees by over 33%. The changes earned his legal department a Value Champion award from the Association of Corporate Counsel.
Tucker, 62, previously served as division general counsel with Tyco International and in senior legal positions with the General Electric Co.
Prior to joining General Electric, he worked at various law firms, including Ballard Spahr Andrews & Ingersoll, Bingham Dana, and Csaplar & Bok. Before joining Avis he was managing partner of Tucker Associates and of counsel at Lowe & Savage from 2007 to 2010.
Avis has been traveling a rocky road lately. Its CEO left last December, replaced by an interim CEO. In February the company reached a third amended agreement with its largest investor, SRS Investment Management, which included realigning the board of directors. A new chairman of the board was named.
David Zales, general counsel of New York-based SRS, told Corporate Counsel on Tuesday that Tucker's departure was an internal company decision.
"SRS was not involved," Zales said. "It was not an SRS issue."
Then Avis said it has been hit by the "current unprecedented circumstances" of the coronavirus.
On March 23 Avis announced it was withdrawing its financial outlook for 2020, saying, "The outlook for April and beyond is challenged with reservations down approximately 60% and with the potential for further declines."
The company said it was targeting some $400 million in cost cutting by reducing its fleet and staffing levels.
"We are also evaluating compensation expense and intend to make reductions, including to base compensation for senior employees including the executive leadership team," it added.
With the cuts, Avis said, "We expect to have sufficient liquidity to operate through the end of 2020 and beyond."
Avis Budget Group Inc. is the parent company of Avis Car Rental, Budget Car Rental, Budget Truck Rental, Payless Car Rental, Apex Car Rentals, Maggiore Group and Zipcar.
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