Summary
This 8-K filing by United Rentals, Inc. (URI) details the compensation committee's determinations for the 2006 Annual Incentive Compensation Plan for key executive officers, including the CEO, CFO, and Executive Vice President of Operations. The plan outlines the performance metrics and weightings that will be used to determine bonus payouts for the fiscal year 2006. Investors should note that executive compensation is tied to specific financial and operational targets, including Earnings Per Share (EPS) as Adjusted, cash flow from operations, rental rate increases, and individual performance goals. The filing specifies the target and maximum bonus percentages relative to base salaries for each executive, providing transparency into how leadership incentives are aligned with company performance.
Key Highlights
- 1Determinations made for the 2006 Annual Incentive Compensation Plan for key executives.
- 2Eligible executives for 2006 bonuses include Wayland Hicks (CEO), Martin Welch (CFO), and Michael Kneeland (EVP-Operations).
- 3Bonus payouts will be based on a combination of company performance metrics: EPS as Adjusted, cash flow from operations, and increase in rental rates.
- 4Individual objective performance goals also contribute to bonus calculations.
- 5Specific weightings are assigned to each performance metric for different executives.
- 6Target and maximum bonus amounts are clearly defined as percentages of base salary for each executive.
- 7Base salaries for 2006 will remain at 2005 levels until reviewed and potentially adjusted by the compensation committee.