Avis Announces New CEO
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Avis is looking for a new CEO while trying to navigate the changing rental car business. Larry De Shon was appointed to the position in 2016 after ten years with the company. I’m curious why he’s leaving.
News reports, such as a Wall Street Journal article, don’t provide an explanation. The stock has done well, and Avis has made strategic moves, including servicing Waymo’s self-driving cars. As part of its repositioning, Avis now considers itself a “provider of mobility solutions” instead of a car-rental company.
Avis’s news release presents De Shon positively, including his glowing quotes about the company and the board chair’s quote about his success:
“On behalf of the Board and the entire team, I’d like to thank Larry for the many contributions he has made to Avis Budget Group since he joined the Company in 2006, and for his exceptional leadership as CEO for the last four years. Larry has played an instrumental role in positioning Avis Budget for the future of mobility, while navigating through unprecedented industry challenges. Together with our outstanding management team, Larry has built a strong foundation for growth and continued success. We are pleased that we will continue to have access to Larry’s insights.”
Avis is also planning to keep De Shon on until the end of the year for a transition period, which is another sign that he isn’t being forced out.
Discussion:
What do you think is the reason for De Shon’s departure?
Should Avis or De Shon say more? Or should I mind my own business?
