Hertz 2014 Annual Report Download - page 238

Table of Contents
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 


To determine the EICP awards, our Compensation Committee reviewed our performance against the established performance criteria, reviewed
individual performance and approved the EICP award payments for the NEOs. To arrive at the annual award, the NEO’s salary was multiplied by a
specified target (the “Target Award”), which was further multiplied by modifiers noted in the table below:
Target Award X
Corporate
Performance
Modifier(1)
XBusiness Unit
Modifier(2) X
Individual
Performance
Modifier(3)
=Annual Incentive
Payout




(75% to 125%)

(0% to 150%)

(EICP Award)
(1) The Corporate Performance Modifier is designed to reward our Company’s overall financial performance and is based on the weighted average of our Company’s API,
return on total capital and revenue.
(2) The Business Unit Modifier is designed to reward the performance of individual business units and, for corporate employees, the weighted average of each individual
business unit’s performance.
(3) The Individual Performance Modifier is designed to reward the individual performance of our NEOs.

The Target Award for 2014 was a percentage of the NEO’s 2014 base salary. In general, the Compensation Committee considered the experience,
responsibilities, title and historical performance of each particular NEO when determining Target Awards.
Each NEO’s 2014 Target Award as a percentage of base salary as of December 31, 2014 was as follows:










Mr. Kennedy

85


660,000


561,000

Mr. Taride(1)

85


637,897


542,213

Mr. Stuart

75


505,000


378,750

Mr. Broome

70


394,500


276,150

Mr. Frissora

170


1,450,000


2,465,000

Mr. Sider

85


660,000


561,000

Mr. Zimmerman

80


536,000


428,800

(1) For Mr. Taride, these amounts have been converted to U.S. dollars from pounds sterling at the 12‑month average rate of 1.64739.
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The chart below summarizes the financial performance elements of the 2014 Corporate Performance Modifier. In early 2014, the Compensation
Committee reviewed each element of the 2014 Corporate Performance Modifier. From this review, the Compensation Committee elected to
continue using API and revenue as Corporate Performance Modifiers and replaced economic value added, or EVA ® (a registered trademark of
Stern Stewart and Co.) with return on total capital. Like EVA®, return on total capital provides a relative measure of our profitability compared to our
invested capital, however we believe that return on total capital is the measure more commonly used by analysts who follow Hertz Holdings. The
financial performance elements contained the same weights as those used in the 2013 Corporate Performance Modifier, with the exception of
return on total capital, which entirely replaced the 40%-weighted EVA® metric.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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