ROIC Target Sample Clauses
The ROIC Target clause sets a specific benchmark for Return on Invested Capital (ROIC) that a company or project must achieve within a defined period. Typically, this clause outlines the calculation method for ROIC, the measurement period, and the consequences of meeting or failing to meet the target, such as triggering performance incentives or penalties. Its core practical function is to align management or stakeholder interests with efficient capital use and profitability, ensuring that investments generate adequate returns and providing a clear metric for evaluating financial performance.
ROIC Target. The actual number of PRSUs subject to this Agreement shall be determined based upon the Company's achievement of the ROIC Target as follows (“Actual PRSUs”): If the Company's average ROICduring the Measurement Period is: Actual PRSUs: For purposes of the foregoing, the level of achievement of the ROIC Target shall be determined by the Committee in its sole discretion by calculating the Company's return on invested capital for each applicable fiscal year by dividing (i) the Company's operating earnings for the applicable fiscal year, by (ii) the Company's net working assets for the applicable fiscal year. Further, the actual number of PRSUs subject to this Agreement based upon the Company's achievement of the ROIC Target shall be determined by applying straight-line interpolation rounded down to the nearest whole number of PRSUs. If the PRSUs vest, then in settlement of the PRSUs, the Executive will receive a number of shares of Common Stock equal to the number of PRSUs determined under this Section 2.01, subject, however, to the withholding provisions below. If the PRSUs do not vest, then they will be forfeited in full and the Executive shall have no further rights with respect to the award hereunder.
ROIC Target. A portion of the actual number of Performance Shares subject to this Agreement also shall be determined based upon the Company's achievement of the ROIC Target as follows: If the Company's average ROIC during the Measuring Period is: Actual Number ofPerformance Shares: < % % of the Target Number % % of the Target Number > % % of the Target Number For purposes of the foregoing, the level of achievement of the ROIC Target shall be determined by the Committee in its sole discretion by calculating the Company's return on invested capital for each applicable fiscal year by dividing (i) the Company's operating earnings for the applicable fiscal year, by (ii) the Company's net working assets for the applicable fiscal year. Further, the actual number of Performance Shares subject to this Agreement based upon the Company's achievement of the ROIC Target shall be determined by applying straight-line interpolation rounded down to the nearest whole number of Performance Shares.