Avis Budget Group (NASDAQ:CAR) shareholders elected six directors, approved the company’s auditor and backed executive compensation at the company’s 2026 annual meeting, while rejecting a shareholder proposal calling for changes to majority voting requirements.
Chief Executive Officer Brian Choi opened the virtual meeting by thanking shareholders, the board, senior leadership and employees. Choi said the company’s global workforce remains “committed, focused, dedicated, and integral to continuing our success.”
Shareholders Approve Three Company Proposals
The meeting included four proposals. According to Sera, all six board nominees were elected to one-year terms expiring in 2027. Shareholders also ratified Deloitte & Touche LLP as the company’s independent registered public accounting firm for fiscal 2026.
In addition, shareholders approved, on an advisory basis, the compensation of the company’s named executive officers.
The company said final voting results will be reported in a Form 8-K filing with the Securities and Exchange Commission within four business days of the meeting.
Majority Voting Proposal Rejected
The fourth item on the agenda was a shareholder proposal submitted by John Chevedden seeking governance by majority vote and meeting adjournment. Chevedden asked the board to take steps so that voting requirements in the company’s charter and bylaws that call for greater than a simple majority be replaced by a majority of votes cast for and against proposals, or a simple majority.
Chevedden argued that similar proposals had received strong support at other companies and said Avis Budget shareholders had previously shown significant support for the same topic. He said the board should support the proposal and criticized its opposition, specifically naming Lynn Krominga, chair of the governance committee.
The board recommended a vote against the proposal. Sera reported that the proposal was not approved.
Company Addresses EV Fleet and Debt Questions
Following the formal business portion of the meeting, the company held a brief question-and-answer session. Choi addressed a shareholder question about what percentage of the company’s car fleet is pure electric.
Choi said Avis Budget has not disclosed that figure for competitive reasons and would not do so at the meeting. However, he reiterated that, as the company has said on previous earnings calls, pure electric vehicles represent “a very small portion” of the company’s fleet.
Executive Vice President and Chief Financial Officer Daniel Cunha responded to a question about whether the company still had about $25 billion of debt and how it might be reduced. Cunha said the figure was “approximately correct” and noted that the company reported more detail in its first-quarter earnings.
Cunha said the total included about $19 billion of fleet debt and $6 billion of corporate debt. He said the fleet debt is backed by vehicle assets and that the amount “oscillates as the fleet grows and declines.”
On leverage, Cunha said Avis Budget intends to reduce leverage over time to a range of 3x to 4x through a combination of paying down debt and growing EBITDA. He said the company plans to dedicate “a good chunk” of cash flow toward debt reduction.
No additional questions were submitted, and the meeting was concluded.
About Avis Budget Group (NASDAQ:CAR)
Avis Budget Group, Inc operates as a leading global provider of vehicle rental and mobility solutions. Through its two core brands, Avis® and Budget®, the company offers a broad range of rental options including daily, weekly and monthly car rentals for leisure and business travelers. In addition to traditional airport and off-airport car rental services, Avis Budget Group delivers innovative mobility platforms such as car-sharing programs and connected fleet solutions designed to meet the evolving needs of corporate, government and individual customers.
The company’s roots trace back to Avis Rent a Car, founded in 1946, and Budget Rent a Car, established in 1958.
