What were the key financial performance indicators for United Rentals in 2011?

United Rentals reported a 16.7% increase in revenue to $2.6 billion and a substantial 34.4% increase in Adjusted EBITDA to $929 million in 2011 compared to 2010. The Adjusted EBITDA margin also improved by 4.7 percentage points to 35.6%.

How is the company's executive compensation structured, and how does it align with performance?

Executive compensation is heavily performance-based. In 2011, annual incentives were funded at 100% of target, reflecting strong company performance. Performance-based Restricted Stock Units (RSUs) vested above target (178.75% of target) due to exceeding Adjusted EBITDA and Adjusted EBITDA Margin goals, demonstrating a clear link between executive pay and company financial achievements.

What strategic initiatives did United Rentals focus on in 2011?

Key strategic focuses included increasing rental rates, improving equipment utilization, growing revenue from National Account customers, optimizing the rental location network (especially in trench safety, power, and HVAC), and enhancing customer service through single points of contact and a centralized Customer Care Center.

What is the company's approach to corporate governance and board independence?

United Rentals emphasizes director independence, following NYSE criteria and its own more stringent standards. Ten out of eleven directors were deemed independent, with the CEO being the only non-independent director. The company also has a Code of Business Conduct and an Audit Committee composed of financially literate and independent directors, with designated 'audit committee financial experts'.

URI 10-K Filed Apr 20, 2012

Summary

United Rentals, Inc.'s (URI) 2011 Annual Report (10-K/A) details a year of significant financial recovery and strategic execution. The company reported a substantial 16.7% increase in revenue to $2.6 billion and a 34.4% surge in Adjusted EBITDA to $929 million, reflecting strong operational performance. Key drivers included a 6.1% rise in rental rates, a 13.4% increase in equipment on rent, and a growing proportion of revenue from National Account customers. The report also highlights a robust executive compensation program tied to performance. In 2011, annual incentive awards were funded at 100% of target, and performance-based RSUs vested above target due to exceeding EBITDA and EBITDA Margin goals. The company's strong financial results and strategic initiatives position it well for continued growth and shareholder value creation.

Key Highlights

1Revenue increased by 16.7% to $2.6 billion in 2011 compared to 2010.
2Adjusted EBITDA saw a significant increase of 34.4% to $929 million.
3Rental rates increased by 6.1%, and equipment utilization improved.
4Proportion of revenue from National Account customers grew to 35% in 2011.
5Executive compensation is strongly tied to performance, with annual incentives funded at target and performance-based RSUs exceeding target due to strong financial results.
6The company's stock price increased by 29.9% from December 31, 2010, to December 31, 2011.
7Significant focus on operational improvements, including network optimization and enhanced customer service management.

UNITED RENTALS, INC. Annual Report (Amendment), Year Ended Dec 31, 2011

Summary

Key Highlights

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