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Avis Rent a Car

Industry Car rentalFounded Ypsilanti, Michigan, U.S.

(1946)Founder(s) Warren AvisHeadquarters Parsippany-Troy Hills Twp ,

NJ, U.S.Number of locations ~4900+ (as of 2007)Area served WorldwideKey people Ronald L. Nelson

(Chairman) & (CEO)F. Robert Salerno(President), (COO , & (Director)David B. Wyshner(CFO) & (Executive Vice President)

Revenue ▲ US$ ,5.986 Billion (2007)

Operating income ▼ US$ -992 Million (2007)

Net income ▲ US$ -916 Million (2007)

Total assets ▼ US$ 12.474 Billion (2007)

Total equity ▼ US$ 1.465 Billion (2007)

Owner(s) Avis Budget Group

Employees

Male

Female

40,000 (2008)

61%

39%

Website Avis.com

Avis History :-• The company was founded in 1946 with three cars at Willow Run Airport, Ypsilanti

by Warren Avis (August 4, 1915 – 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 Pascal Bazin (Age 51) Jean-Pierre Bizet (Age 59)

Appointed to the Board 29 October 2002Executive Deputy Chairman (since May 2004)

Lesley Colyer (Age 55)Appointed to the Board 18 April 2002Group HR and Corporate Affairs Director (since April 2002).

Simon Palethorpe (Age 39)Appointed to the Board 6 December 2004Group Commercial Director (since December 2004)

Martyn Smith (Age 52)Appointed to the Board 11 September 2002Group Finance Director (since September 2002)

Non Executive Directors :-• Alun Cathcart (Age 63)• Roland D’Ieteren (Age 66)• Benoit Ghiot (Age 38)• Gilbert van Marcke de Lummen (Age 70)• Malcolm Miller (Age 52) • Axel von Ruedorffer (Age 65)• Pierre Alain De Smedt (Age 63)

Hertz Corporation

Founded 1918

Founder John D. Hertz

Headquarters Park Ridge, New Jersey, U.S.

Area served Worldwide

Owner various shareholders, including a private equity group

Employees 29,350

Parent Hertz Global Holdings, Inc.

Website www.hertz.com

Hertz History :-• The Hertz Corporation (also known as Hertz Rent a Car or simply Hertz) 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 1994–2005, 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.

• Share incentive policy 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.

• Share incentive policy• 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.