Hertz 2009 Annual Report Download - page 155

HERTZ GLOBAL HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Performance Stock, Performance Stock Units, Restricted Stock and Restricted Stock Units
Performance stock, performance stock units, or ‘‘PSUs,’’ and performance units granted under the
Omnibus Plan will vest based on the achievement of pre-determined performance goals over
performance periods determined by the compensation committee. In the event of an employee’s death
or disability, a pro rata portion of the employee’s performance stock, performance stock units and
performance units will vest to the extent performance goals are achieved at the end of the performance
period. Upon a termination of employment or for any other reason, all outstanding performance stock,
performance stock units and performance units held by the employee are immediately canceled.
Restricted stock and restricted stock units, or ‘‘RSUs,’’ granted under the Omnibus Plan will vest based
on a minimum period of service or the occurrence of events (such as a change in control, as defined in
the Omnibus Plan) specified by the compensation committee. Upon a termination of employment for
any reason, any unvested restricted stock or restricted stock units of the employee will be canceled.
Each deferred stock unit granted under the Omnibus Plan represents the right to receive one share of
Hertz Holdings’ common stock on a specified future date. Generally, upon a participant’s termination of
employment other than for cause, Hertz Holdings will issue one share of common stock to the
participant for each deferred stock unit the participant then holds.
A summary of RSU and PSU activity under the Omnibus Plan as of December 31, 2009 is presented
below.
Weighted- Aggregate Fair Value
Average (In thousands of
Options Shares Fair Value dollars)
Outstanding at January 1, 2009 .................. 1,285,000 $4.98 $ 6,515
Granted ................................... 6,465,239 $3.42
Vested/Exercised ............................. (635,000) $4.98
Forfeited or Expired ........................... (138,000) $4.83
Outstanding at December 31, 2009 ................ 6,977,239 $3.53 $83,169
The total fair value of RSUs and PSUs that vested during the year is $6.2 million.
In 2009, we granted RSUs to key executives and employees, and PSUs as presented in the table below.
RSUs granted in 2009 generally have the terms set forth in the Omnibus Plan, however in the event of an
employee’s death or disability (as defined in the Omnibus Plan), a pro rata portion of the RSUs that
would have vested on the next anniversary of the grant date will vest and the remainder of the RSUs will
be canceled.
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