Avis Rent a Car

Industry Car rental

Founded Ypsilanti,
Michigan, U.S.(1946)
Founder(s) Warren Avis
Headquarters Parsippany-Troy Hills Twp ,
NJ, U.S.
Number of locations ~4900+ (as of 2007)
Area served Worldwide
Key people Ronald L. Nelson
(Chairman) & (CEO)
F. Robert Salerno
(President), (COO , &
(Director)
David B. Wyshner
(CFO) & (Executive Vice
President)
Revenue ß US$ ,5.986 Billion (Ä
)

(perating income ‰ US$ -992 Million (Ä
)

Net income ß US$ -916 Million (Ä
)

rotal assets ‰ US$ 12.474 Billion (Ä
)

rotal equity ‰ US$ 1.465 Billion (Ä
)

( ner(s) Avis Budget Group

Employees 40,000 (Ä )
Male 61%
Female 39%

Oebsite Avis.com
 Avis History :-
 The company was founded in 1946 with three cars at Willow Run Airport, Ypsilanti
by Warren Avis (August 4, 1915 ʹ April 24, 2007). It established branch operations
across the US over the next few years, becoming the second largest car rental
company in the country by 1953. By its tenth anniversary in 1956 it had opened its
first international offices in Europe, Canada and Mexico.

 Their corporate motto is "We Try Harder." It was adopted in 1962 (during the
tenure of Robert Townsend as its CEO) to make a more positive reference of Avis'
status as the second largest car rental company in the US, at the expense of its
larger competitor The Hertz Corporation. In 1981, the company instituted its
system of vehicle tracking, that was coincidentally named Advanced Vehicle
Identification System (AVIS).
 Avis Board Of Directors:
 Executive Directors
´ ëascal Bazin (Age 51)
´ Jean-ëierre Bizet (Age 59)
Appointed to the Board 29 October 2002
Executive Deputy Chairman (since May 2004)
´ _esley Colyer (Age 55)
Appointed to the Board 18 April 2002
Group HR and Corporate Affairs Director (since April 2002).
´ @imon ëalethorpe (Age 39)
Appointed to the Board 6 December 2004
Group Commercial Director (since December 2004)
´ Ôartyn @mith (Age 52)
Appointed to the Board 11 September 2002
Group Finance Director (since September 2002)
 Non Executive Directors :-
 Alun Cathcart (Age 63)
 Roland D͛Ieteren (Age 66)
 Benoit Ghiot (Age 38)
 Gilbert van Ôarcke de _ummen (Age 70)
 Ôalcolm Ôiller (Age 52)
 Axel von Ruedorffer (Age 65)
 ëierre Alain De @medt (Age 63)
 Hertz Corporation

Founded 1918
Founder John D. Hertz
Headquarters Park Ridge, New
Jersey, U.S.
Area served Worldwide
( ner various shareholders,
including a private
equity group
Employees 29,350
ëarent Hertz Global Holdings,
Inc.
Oebsite www.hertz.com
 Hertz History :-
 rhe Hertz Corporation (also known as j
 
or simply j
) is the largest car
rental brand in the world, with approximately 8,200 locations in 146 countries worldwide.
 Hertz also maintains a heavy equipment rental division known as the Hertz Equipment Rental
Corporation, aka HERC. It is headquartered in Park Ridge, New Jersey, United States. HERC
has more than 300 branches throughout the United States, Canada, the European Union
and India.
 The company was begun by Walter L. Jacobs in 1918, who started a car rental operation
in Chicago with a dozen Model Ts. In 1923, Jacobs sold it to John D. Hertz, president
of YellowCab and Yellow Truck and Coach Manufacturing Company , who renamed it the
"Hertz Drive-Ur-Self System". The company has passed through a number of hands,
including General Motors, RCA, and United Airlines. As a public company, Hertz was traded
on the NYSE under the symbol HRZ until the purchase of outstanding stock by Ford Motor
Company in 1994.
 From 1994ʹ2005, it was a wholly owned subsidiary of Ford Motor Company. On June 13,
2005, Ford issued a notice that Hertz would be spun off in an initial public offering. On
September 13, 2005 it was announced it was to be sold to a private equity group (composed
of Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity) for $5.6
billion in cash and debt acquisition. The sale was completed on December 22, 2005.
 This private equity group took Hertz public on November 16, 2006 and is now available on
the New York Stock Exchange under the symbol 'HTZ'.
 Despite its past affiliation with Ford, the rental fleet of most Hertz locations consists of
primarily Ford and its brands, such as Mazda, Volvo ,Mercuryand Lincoln , along with now
various others (mostly Korean and Japanese).
What is HRM Strategy :-
 HRM Strategy of Avis & Hertz
 Salary :
The policy on base salary up to and including 2005 was to benchmark using general market
external surveys against the median of similar sized companies relevant to the appropriate
marketplace. In considering whether to make any increase to base salaries, the
Remuneration Committee takes into account the performance of individual executives and
the general increases for employees across the Group.
 From 2006 to 2009 executive and senior management salaries are frozen. It is anticipated
that from 2009 onwards base salaries will then be below the market median, with short and
long-term incentives providing competitive total remuneration aligned to delivery of results.
 Annual incentive bonus
Annual incentive bonus plans for executive Directors and key senior management are based
on achievement of targets approved by the Remuneration Committee and related directly to
the annual profit plan approved by the Board. Targets and performance measures are
quantitative and there is a financial threshold below which no bonus payment is made.
 In 2007 and 2008 the annual bonus opportunity is up to 100% of salary, with 50% of salary
payable for on-target performance. In 2008, 80% of the bonus is based on stretching financial
targets and 20% on achievement of quantitative functional objectives.
 The base salary, bonus payments and value of benefits in kind for each Director are set out in
theDirectors' emoluments table. Bonus payments, benefits in kind and cash allowances do
not form part of pensionable earnings for Directors.
 @
 

The Remuneration Committee introduced a new long-term incentive plan during 2007 that is aligned with
the Group's medium term plan and shareholders' interests.
 Shareholding guidelines were implemented in 2005 that require the executive Directors to build up their
personal holdings of shares in the Company. The guidelines are 150% of salary for the Chief Executive and
100% of salary for other executive Directors. The Remuneration Committee requires executives to retain
50% of any vested shares (net of tax and exercise costs) arising from any share or option plan until the
shareholding requirement is achieved.
 Outstanding share plans
Outstanding share plans are as follows: Long Term Incentive Plan (last award 2007); 2006 Deferred Bonus
Share Plan (last award 2007); Performance Share Plan (last award April 2004) and Share Option Schemes
(last award April 2004). A description of each of these plans is set out below. The assessment of whether
performance conditions have been met is verified by the Remuneration Committee at the time of vesting.
 The base salary, bonus payments and value of benefits in kind for each Director are set out in the
Directors' emoluments table. Bonus payments, benefits in kind and cash allowances do not form part of
pensionable earnings for Directors.
 @
 

 The Remuneration Committee introduced a new long-term incentive plan during 2007 that is aligned with
the Group's medium term plan and shareholders' interests.
 Shareholding guidelines were implemented in 2005 that require the executive Directors to build up their
personal holdings of shares in the Company. The guidelines are 150% of salary for the Chief Executive and
100% of salary for other executive Directors. The Remuneration Committee requires executives to retain
50% of any vested shares (net of tax and exercise costs) arising from any share or option plan until the
shareholding requirement is achieved.
 Outstanding share plans
Outstanding share plans are as follows: Long Term Incentive Plan (last award 2007); 2006 Deferred Bonus
Share Plan (last award 2007); Performance Share Plan (last award April 2004) and Share Option Schemes
(last award April 2004). A description of each of these plans is set out below. The assessment of whether
performance conditions have been met is verified by the Remuneration Committee at the time of vesting.
 Long Term Incentive Plan :-
In 2007 the Remuneration Committee introduced
a long-term incentive plan. It is intended that
there will be annual grants of awards under this
Plan which will vest three years after grant,
providing certain performance conditions are
met. These conditional awards take the form of
nil cost options to acquire ordinary shares in the
Company.
 The performance conditions required for vesting
purposes are based 50% on the Company's three-
year growth in earnings per share (EPS) and 50%
on return on capital employed (ROCE), based on
the Group's results under the International
Financial Reporting Standards.
 2006 Deferred Bonus Share Plan :-

During 2006, the Avis Europe plc Deferred Bonus Share Plan was established as part of the Remuneration Committee's
decision to enhance bonus opportunities for 2006 in order to maintain momentum on delivering short-term targets and
make no long-term awards during that year. 50% of the bonus earned in respect of the year to 31 December 2006 was paid
in cash after publication of the 2006 results and 50% was deferred into an award over Avis Europe shares to be released,
subject to continued employment, in March 2008. The share award is in the form of a nil cost option to acquire ordinary
shares in the Company, which were purchased on the market and are held in the Avis Europe Employee Share Trust. The
participants are key senior managers, including four of the executive Directors. Outstanding share awards will vest and
become exerciseable in full on a change of control.
 Share Retention Plan :-
No awards under this Plan have been made since December 2004. The Share Retention Plan was established as a one off
discretionary benefit to retain the services of Murray Hennessy (former Chief Executive) to January 2008. Therefore there
were no performance conditions other than continued service to 1 January 2008. The award was in the form of a nil cost
option to acquire ordinary shares in the Company that vested in three equal tranches on 1 January 2006, 1 January 2007 and
1 January 2008. In respect of the third tranche that would have vested on 1 January 2008, the Remuneration Committee
exercised its discretion under the rules of the Plan to permit this award to vest on the date of Murray Hennessy's
termination of employment on 31 December 2007.
 Performance Share Plan:-
No awards under this Plan have been made since April 2004 and it is not anticipated that awards will be made in the future.
The Performance Share Plan is a seven-year plan, and was designed to encourage executives to focus on longer-term
performance and growth in shareholder value. A combination of performance targets was chosen for the measurement of
the Company's performance, being total shareholder return (TSR) and earnings per share (EPS) in order to align the interests
of executives with those of shareholders. EPS performance is calculated from the audited accounts and TSR is calculated by
external remuneration consultants.
 Awards were determined by the Remuneration Committee and could not be greater than 100% of the qualifying
participant's total annual remuneration measured at the date of the award. No award granted to date has exceeded one
times annual salary. Awards vest over a period of seven years from the date of the award. If the performance conditions are
met at the third and fifth anniversary of the date of award, vesting accelerates to the extent of 25% of the award on each of
these occasions. The extent to which an award vests is determined by the Group's medium and long-term performance
measured in terms of TSR. TSR was measured against a broad comparator group from the Transport and Support Services
sectors.