Avis Budget Group enters into new cooperation agreement with SRS Investment Management
Board will ultimately be comprised of nine directors, including three SRS representatives
Avis Budget Group, Inc. today announced that it has entered into a new cooperation agreement with SRS Investment Management, LLC, the Company's largest shareholder.
The terms of the new approximately two-year cooperation agreement include the appointment of Jagdeep Pahwa, a current Board member and President of SRS, as Vice Chairman of the Board. The Company’s slate for election at the 2020 Annual Meeting of Shareholders will include the addition of Karthik Sarma, Managing Partner of SRS, and current Board members Bernardo Hees, Mr. Pahwa, Carl Sparks, Glenn Lurie, Brian Choi and Lynn Krominga.
Six current directors are not standing for re-election at the 2020 Annual Meeting, temporarily reducing the size of the Board to seven directors. The Board will identify an additional independent director within 90 days of the 2020 Annual Meeting, and once a permanent Chief Executive Officer is named, he or she will also join the Board, resulting in a nine-person Board.
Bernardo Hees, Chairman of the Board, said, "SRS has been a valuable long-term partner to Avis. We are pleased to have reached a new cooperation agreement with them that we believe is in the best interests of the Company and our shareholders. I look forward to working closely with Jagdeep to drive shareholder value and position Avis Budget Group for long-term performance. On behalf of the Board, I would like to thank our retiring directors for their many contributions to Avis Budget Group.”
“I am excited for this phase that Avis is entering with a reconstituted Board that is fully aligned with the interests of all stakeholders. The Board is well-equipped to oversee the Company’s pursuit of excellence and focus on delivering strong, sustainable results,” stated Mr. Sarma.
The complete agreement between Avis Budget Group and SRS will be included in a Form 8-K to be filed with the Securities and Exchange Commission.