Hertz 2014 Annual Report Download - page 235

Table of Contents
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Salary
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Fixed Cash
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Paid throughout the year to attract and retain senior executives
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Sets the baseline for bonus and retirement programs
Annual Cash Bonus(1)
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Performance‑Based Cash
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Paid annually in cash to reward performance of the Company, business unit and individual
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Aligns senior executives’ interests with Hertz Holdings' stockholders’ interests, reinforces
key strategic initiatives and encourages superior individual performance
Long‑Term Equity
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Long‑Term Equity
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Granted annually, with vesting occurring in subsequent years based on satisfying
performance conditions
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Aligns senior executives’ interests with Hertz Holdings' stockholders’ interests and drives
key performance goals
Retirement Benefits and
Perquisites
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Variable Other
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Paid at retirement based on senior executives’ salary, bonus and years of service to the
Company
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Limited perquisites for business purposes, including relocation expenses generally
designed to attract and retain talent
(1) We also occasionally provide non-recurring cash bonuses to reflect superior individual performance, new responsibilities or to compensate new hires for amounts forfeited
from their previous employer.
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As part of determining our compensation programs, we compared the compensation for our NEOs to the compensation of comparable positions at
a group of companies (the “Survey Group”). The Compensation Committee selected the Survey Group in late 2013 in consultation with Semler
Brossy. Because the number of our direct industry competitors in the global market is limited, we did not limit the Survey Group to our direct
competitors, but also included similarly‑sized companies that are in the consumer discretionary (excluding media companies), consumer staples
and industrials (excluding capital goods companies) sectors. These industries were selected because successful companies within these
industries frequently bear substantial similarities to the Company’s business model, insofar as they (i) are asset‑intensive, (ii) require frequent
customer contact at multiple locations and (iii) involve the need to maintain favorable brand recognition. The companies in the Survey Group had
annual revenues of approximately $5 to $22 billion, as compared to the Company’s 2014 revenue of $11 billion. We included a relatively large
number (49) of companies in the Survey Group, in part because we believe that doing so helps to reduce the influence of outliers. Of the 49
companies in the Survey Group, 37 were in the prior Survey Group.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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