<B> Koch To Replace Olson</B>
With the retirement of Frank A. Olson, chief executive of The Hertz Corp., on Dec. 31, the car rental industry will lose its most venerable leader. Olson, who started his career at Hertz in 1964 and has served as CEO for the past 23 years, will be succeeded by another Hertz veteran, Craig R. Koch, the company's president and chief operating officer since 1993.
Olson's achievements are awesome by any standard. "Frank is an industry titan, revered by his staff and everyone who works for him, and feared by his competitors," said David Bradley, an analyst at J.P. Morgan who has followed Hertz for years. "He single-handedly applied discipline to the industry over the years and set higher standards of service."
Jon LeSage, vice president and director of research at car rental consultancy Abrams Travel Data Services, characterized Olson as "the single most important person in the industry" in the past three decades and as instrumental in transforming the industry from a hodge-podge of regionally based entrepreneurial franchises into today's corporate-controlled global systems.
Hertz typically has not been first to adapt new techologies and products, but has a reputation for executing innovations better than anyone else. Its #1 Club Gold Service--what one analyst calls Olson's "single greatest contribution"--is universally loved by business travelers. Yield management is another area in which Hertz is way ahead of the competition, Bradley said.
Behind the scenes, Olson influenced "a whole era of management," having trained many of the executives in key positions at other companies, noted LeSage. Yet, added Bradley, "he's been ruthless with competitors, retaliating aggressively when competition moves onto his turf." Not the least of his accomplishments is the stability of the company. Over the years, Olson has "had to be accountable to many different corporate owners"--including RCA, United Airlines and Ford--"while simultaneously running the company, and that's nothing short of remarkable," LeSage said.
Key to Olson's success has been his strength of conviction, force of will and candor, said Bradley. "He has the highest and most exacting standards in every criteria, and he lets you know if you're falling short," he said. "This causes fear in some people's hearts, but at the end of the day you appreciate it because it makes you a better person."
No one expects Koch, who joined Hertz in 1971, to alter its course. As chairman of the board, Olson will continue to participate in company decisions. "His influence won't go away," said Bradley. "Don't underestimate what that means.