Tamir Peres
HERC HOLDINGSAbout Tamir Peres
Tamir Peres is Senior Vice President and Chief Information Officer of Herc Holdings (HRI), serving since September 2017; age 55 per FY2024 filing, with prior leadership roles in enterprise IT at Sunoco Logistics and Sunoco Inc . Company performance under the NEO cohort has been strong: equipment rental revenue rose 11% to $3.19B in 2024 and adjusted EBITDA increased 9% to $1.58B; since 2020, rental revenue and adjusted EBITDA CAGRs were 20% and 23% respectively . Pay-versus-performance disclosures show cumulative TSR value of a fixed $100 investment rising to $409.92 by 2024, alongside adjusted EBITDA of $1,583M in 2024 . Governance features include clawbacks, stock ownership guidelines, and a prohibition on hedging/pledging, supporting pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sunoco Logistics (public midstream) | Vice President & CIO | 2012–2017 | Led IT group; enterprise modernization across logistics operations |
| Sunoco Inc. | Director, Corporate IT | 2005–2012 | Drove strategic and tactical technology across multiple business units (Refining, Retail, Chemicals, Logistics, Coke) |
External Roles
No public company board or external director roles disclosed for Peres in HRI filings reviewed .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 465,961 | 487,308 | 507,308 |
| Perquisites Allowance ($) | 15,000 | 15,000 | 15,000 |
| Company 401(k) + Deferred Match ($) | 48,722 | 32,705 | 31,831 |
| Personal Use of Company-Provided Car ($) | 4,922 | 4,922 | 4,922 |
Performance Compensation
| Component | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| 2024 EICP | Adjusted EBITDA ($mm) | 50% | 1,571 | 1,549 | 90.2% metric; contributes to 85.0% weighted score | |
| 2024 EICP | Return on Revenue Earning Equipment (%) | 30% | 25.0% | 24.2% | 82.5% metric; part of 85.0% weighted score | |
| 2024 EICP | Equipment Rental Revenue Growth (%) | 20% | 8.5% | 9.3% | 122.9% metric; part of 85.0% weighted score | |
| 2024 EICP | Management Business Objectives | 10% | Qualitative (Sustainability, IT, People/Culture) | 150% | 15.0% weighted contribution | |
| 2024 EICP Summary | Company Performance Score | — | — | — | 100.0% | |
| 2024 EICP Summary | Individual Performance Score | — | — | — | 110% (applied to each NEO) | |
| 2024 EICP Payout (Peres) | Target Bonus | — | 75% of salary ($382,500) | Company 100% × Individual 110% | $420,750 paid | Cash |
| Long-Term Incentive | Grant Date | Metric | Weighting | Threshold | Target | Max | Shares/Value | Vesting |
|---|---|---|---|---|---|---|---|---|
| 2024 PSUs | 02/06/2024 | Average ROIC | 60% | See plan | See plan | 200% | Target 3,040; FV $450,133 | 3-year performance period; double-trigger vesting at target on CIC |
| 2024 PSUs | 02/06/2024 | Average REBITDA Margin | 40% | See plan | See plan | 200% | Included above | Same as above |
| 2024 RSUs | 02/06/2024 | Time-based | — | — | — | — | 2,027 shares; FV $300,138 | Vests 1/3 annually on each grant anniversary (expected 02/06/2025, 02/06/2026, 02/06/2027) |
| Historical PSU Outcome | Performance Period | Metric | Weighting | Target | Actual | Payout | Shares Earned (Peres) |
|---|---|---|---|---|---|---|---|
| 2022 PSUs | 2022–2024 | Average ROIC | 60% | 11.5% | 10.8% | 65.0% | 1,410 vs 1,801 target |
| 2022 PSUs | 2022–2024 | REBITDA Margin | 40% | 47.0% | 46.9% | 98.3% | Included above |
| Total 2022 PSUs Payout | — | — | — | — | — | 78.3% | 1,410 |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial Ownership (Peres) | 33,700 shares as of March 17, 2025 |
| Shares Outstanding | 28,484,455 as of March 17, 2025 |
| Ownership % | ~0.12% (33,700 / 28,484,455) |
| Unvested RSUs at 12/31/2024 | 2,027 shares; MV $383,772 at $189.33 |
| Unvested PSUs at 12/31/2024 | Target 3,040 shares; PV $575,563 at $189.33 |
| 2024 Vested Stock Awards | 8,470 shares; value realized $1,257,847 |
| Ownership Guidelines | Section 16 officers: 2× base salary; retention of 50% of net shares until compliant; all NEOs in compliance |
| Pledging/Hedging | Prohibited for directors and Section 16 officers |
| Clawback | SEC/NYSE-compliant clawbacks for Section 16 officers; broader misconduct clawback for directors+ |
Employment Terms
| Provision | Terms |
|---|---|
| Severance (involuntary, no CIC) | Base salary + target bonus (1× for NEOs other than CEO) |
| CIC Severance (double-trigger) | 2× base salary + 3-year average annual bonus for NEOs other than CEO; health/welfare continuation for 2 years; outplacement $25,000 |
| Equity Treatment (CIC) | If not assumed, immediate vest; on qualifying termination post-CIC, double-trigger: RSUs vest; PSUs vest at target |
| RSU/PSU Non-CIC | Death/disability: accelerate; involuntary without cause: pro rata vesting; retirement: continue vesting per terms |
| Scenario Analysis (Peres; as of 12/31/2024; stock $189.33) | Amount ($) |
|---|---|
| Termination Without Cause | Severance $892,500; Benefits $17,369; Outplacement $25,000; RSUs $262,222; PSUs $1,151,504; Total $2,348,595 |
| Death/Disability | RSUs $681,777; PSUs $1,844,642; Outplacement $25,000; Benefits N/A; Total $2,526,419 |
| Termination following Change in Control (double-trigger) | Severance $1,986,565; Benefits $36,611; Outplacement $25,000; RSUs $681,777; PSUs $1,844,642; Total $4,574,595 |
Additional Data Points and Program Design
- Compensation Mix: Peres total 2024 compensation $1,730,082; stock awards $750,271; EICP paid $420,750 . Long-term incentives are majority PSUs (60%) over RSUs (40%), emphasizing ROIC and REBITDA margin over 3-year periods .
- EICP Structure: Formula = Base Salary × Target % (Peres: 75%) × Company Performance Score (100% for 2024) × Individual Performance Score (110%) .
- Governance Features: No tax gross-ups, no option repricing without shareholder approval, independent consultant (FW Cook), and 99% Say-on-Pay support in 2024 .
- Peer Group: Includes United Rentals, McGrath RentCorp, H&E Equipment Services, GATX, Terex, Fastenal, Ritchie Bros., WillScot, Xylem, Air Lease, Trinity, Rush Enterprises, Pool Corp., Federal Signal, Custom Truck One Source; targeted for market relevance, not strict percentile targeting .
Performance Context (Company-Level)
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Adjusted EBITDA ($mm) | 689 | 895 | 1,227 | 1,452 | 1,583 |
| Return on Revenue Earning Equipment (%) | 18.4% | 23.2% | 24.3% | 23.8% | 23.5% |
| Equipment Rental Revenue ($mm) (ex-studio) | — | — | — | 2,820 | 3,102 |
| Cumulative TSR Value of $100 Investment ($) | 135.70 | 320.76 | 274.39 | 316.95 | 409.92 |
Compensation Structure Analysis
- Shift Toward PSUs: 60% of annual LTI in PSUs keyed to Average ROIC and Average REBITDA Margin, reinforcing capital efficiency and profitability discipline .
- At-Risk Pay: For non-CEO NEOs, ~69.9% of target compensation at risk; equity-based compensation averages ~46.7% of target (company-wide stats) .
- Discretion/Consistency: Committee retained simple, transparent design with defined metrics and did not ease targets; 2024 EICP achieved 100% company score with 110% individual scores reflecting team execution .
- No Gross-Ups/No Repricing: Shareholder-friendly policies reduce governance red flags and potential pay inflation .
Related Party Transactions and Risk Indicators
- Hedging/Pledging: Prohibited; reduces misalignment risk .
- Clawbacks: SEC/NYSE-compliant and expanded misconduct clawback; strengthens accountability .
- Section 16 Compliance: Filings met timely requirements in 2024; lowers regulatory risk perception .
- Family Relationships: None disclosed for Peres; related party employment disclosure pertains to CEO’s family, not Peres .
Equity Ownership & Outstanding Awards Detail (Year-End 2024)
| Award Type | Count | Market Value |
|---|---|---|
| Unvested RSUs (Peres) | 2,027 | $383,772 at $189.33 |
| Unvested PSUs (Target, Peres) | 3,040 | $575,563 at $189.33 |
Employment Terms (Policies)
- Stock Ownership Guidelines: CIO classified as Section 16; 2× salary requirement; must retain 50% of net vest shares until compliant; NEOs compliant .
- Insider Trading Policy: Structured windows and prohibitions consistent with NYSE/SEC rules .
- Severance Policy: Clear multiples and double-trigger CIC equity vesting at target for PSUs .
Investment Implications
- Alignment: High share of at-risk and performance-based equity (PSUs tied to ROIC/REBITDA) indicates strong alignment with capital discipline and margin quality; clawbacks and anti-hedging/pledging further align incentives .
- Retention and Selling Pressure: Material unvested RSUs/PSUs and double-trigger CIC provisions reduce immediate selling pressure; 2024 vested stock awards of 8,470 shares ($1.26M) represent potential liquidity but do not imply selling absent Form 4 data .
- Severance/CIC Economics: For Peres, double-trigger CIC payout modeled at ~$4.57M suggests meaningful retention and orderly transition incentives, limiting abrupt departures during corporate events .
- Execution Risk: IT modernization was a 2024 MBO and achieved above-target (150%)—positive signal for CIO execution on transformation, which supports scalability and margin expansion in an acquisitive and growth-driven strategy .