Hertz 2014 Annual Report Download - page 240

Table of Contents

 

Based upon management’s recommendation, our Compensation Committee determined that it was important to provide incentives to our NEOs to
achieve strategic initiatives for our Hertz Rent‑A‑Car Americas, Hertz Rent‑A‑Car International and Hertz Equipment Rental business units for
2014. The business units used in the EICP differ slightly from the reporting segments the Company uses for its financial statements because the
Compensation Committee desires to use business units which reflect the overall geographic and functional roles for which the relevant executive
officers are responsible, notwithstanding the accounting guidance used for segment reporting purposes. NEOs responsible for to a specific
business unit are eligible to have their EICP awards adjusted by the Business Unit Modifier relating to that business unit. NEOs in our corporate
centers had their EICP awards adjusted by weighting Hertz Rent‑A‑Car Americas: 50%, Hertz Rent‑A‑Car International 25%, and Hertz Equipment
Rental 25%. For 2014, the Compensation Committee determined a target for each strategic objective and then measured the 2014 results against
the target to determine an overall performance figure. The Business Unit Modifier can range from 75% to 125%.
For the Hertz Rent-A-Car Americas business unit, the strategic goal approved by our Compensation Committee was achievement of a specified
level of cost synergies, weighted at 100% of the overall score. Since the result was less than 75% of the target, the total Business Unit Modifier
was set at the minimum, 75%.
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

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

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

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
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Cost Synergies
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249
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37.3
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75.0
For the Hertz Rent-A-Car International business unit, the strategic goals approved by our Compensation Committee were: spread value per unit,
net promoter score and cost synergies. Each strategic goal was weighted at 331/3% of the overall score.
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

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
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
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
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Spread Value Per Unit(1)
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$766.8
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$767.60
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103.1
Net Promoter Score(2)
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52.0%
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50.4%

75.0
Cost Synergies
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$100 million
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$83.7 million

83.7
Total Modifier
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87.3
(1) Spread value per unit was measured as revenue per unit less vehicle depreciation per unit.
(2) Net Promoter Score is a customer satisfaction metric.
For the Hertz Equipment Rental business unit, the strategic goals approved by our Compensation Committee were: dollar utilization, fleet
efficiencies and employee satisfaction. Each strategic goal was weighted at 331/3% of the overall score. For 2014, the Compensation Committee
determined that the Business Unit Modifier for Hertz Equipment Rental was as follows:
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

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

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

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
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Dollar Utilization(1)
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37.8
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36.17
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75.0
Fleet Efficiencies(2)
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5.0

2.8

78.0
Employee Satisfaction(3)
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+0.00

+0.04

108.0
Total Modifier
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
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87.0
228
Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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