The stock-based compensation expense associated with the Hertz Holdings stock-based compensation plans is pushed down from Hertz Global and recorded at Hertz. In 2021, Hertz Global's Board of Directors (the "Board") approved the Hertz Global Holdings, Inc. 2021 Omnibus Incentive Plan (the "2021 Omnibus Plan"). As of June 30, 2026, 24,455,614 shares of the Company's common stock were authorized and remain available for future grants under the 2021 Omnibus Plan. Vesting of the outstanding equity awards is also subject to accelerated vesting as set forth in the 2021 Omnibus Plan.

A summary of the total employee compensation expense and related income tax benefits recognized for grants made under the 2021 Omnibus Plan is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Employee compensation expense	$	20	$	16	$	37	$	31
Income tax (benefit) expense	—		3		—		3
Employee compensation expense, net	$	20	$	19	$	37	$	34

As of June 30, 2026, there was $121 million of total unrecognized employee compensation expense expected to be recognized over the remaining 1.5 years, on a weighted average basis, of the requisite service period that began on the grant dates of the outstanding awards.


Options	Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (In millions)
Outstanding as of January 1, 2026(1)	1,158,270	$	26.17	5.8	$	—
Granted	—	$	—	0.0	$	—
Exercised	—	$	—	0.0	$	—
Forfeited or Expired	(44,520)	$	26.17	0.0	$	—
Outstanding as of June 30, 2026	1,113,750	$	26.17	5.2	$	—
Exercisable as of June 30, 2026	(1,113,750)	$	26.17	5.2	$	—
Non-vested as of June 30, 2026	—

A summary of the PSU activity for the first half of 2026 under the 2021 Omnibus Plan is presented below. As of June 30, 2026, there were no issued or outstanding grants of PSAs or PUs under the 2021 Omnibus Plan.


	Shares	Weighted- Average Fair Value		Aggregate Intrinsic Value (In millions)
Outstanding as of January 1, 2026	5,471,438	$	4.04	$	28
Granted(1)	3,517,989	$	5.01	$	—
Vested	(790)	$	9.00	$	—
Forfeited or Expired	(1,177,646)	$	4.34	$	—
Outstanding as of June 30, 2026	7,810,991	$	4.43	$	18

Compensation expense for PSUs is based on the grant date fair value of Hertz Global common stock. For grants issued in 2026, vesting eligibility is based on market, performance and service conditions of primarily three years. Accordingly, the number of shares issued at the end of the performance period could range between 0% and 200% of the original target award amount (100%) disclosed in the table above.

A summary of RSU activity as of and for the first half of 2026 under the 2021 Omnibus Plan is presented below. RSU grants issued in 2026 vest ratably over a period of primarily three years.


	Shares	Weighted- Average Fair Value		Aggregate Intrinsic Value (In millions)
Outstanding as of January 1, 2026	26,017,278	$	4.96	$	134
Granted	13,635,616	$	4.46	$	—
Vested	(8,876,496)	$	5.09	$	—
Forfeited or Expired	(2,447,834)	$	4.48	$	—
Outstanding as of June 30, 2026	28,328,564	$	4.72	$	64


	Six Months Ended June 30,
	2026		2025
Total fair value of awards that vested (in millions)	$	45	$	33
Weighted-average grant-date fair value of awards granted	$	4.46	$	3.96

As of June 30, 2026, there were approximately 256,000 outstanding shares of deferred stock units under the 2021 Omnibus Plan.