Rent-A-Wreck rewards its turnaround teamRent-A-Wreck of...

Maryland Watch

April 10, 1996

Rent-A-Wreck rewards its turnaround team

Rent-A-Wreck of America Inc., the Owings Mills-based used car rental company, has taken a financial U-turn to better times and its top management is going along for the ride.

In the three years since Rent-A-Wreck brought in new management, its operations have gone from $400,000 in the red to $500,000 in the black.

Due to this success, the company's board of directors said yesterday that it is extending by five years its management agreement with the father-and-son team of K.A.B. Inc. and giving them a pay raise.

K.A.B. is headed by Kenneth L. Blum Sr., chairman, and Kenneth L. Blum Jr., president. The new management contract will run until 2003, and the fee has been increased to $250,000 a year from $200,000.

"That's our base retainer," said the younger Mr. Blum. "Our main reward is in the stock options."

As an incentive to boost the value of Rent-A-Wreck's stock, the management team was awarded the option of buying stock at $1 a share and $1.15 a share. The option plan also has been extended another five years. The stock closed yesterday at $1.1875.

Pub Date: 4/10/96

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