ROEC definition

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ROEC and “ROEC hurdle.” For purposes of the Risk Performance Review Criteria specified in Section 6.5(c), PNC’s “ROEC” (return on economic capital) for a given performance year will be calculated as earnings for the applicable performance year, divided by average economic capital for the same calendar year, calculated to two places to the right of the decimal, rounded to the nearest hundredth with 0.005 being rounded upward to 0.01, and “ROEC hurdle” has the meaning set forth in Section 6.5(c).

ROEC for a given performance year will be calculated as earnings for the applicable performance year, divided by average economic capital for the same calendar year, calculated to two places to the right of the decimal, rounded to the nearest hundredth, and where “earnings” and “economic capital” have the following meanings: “Earnings” will mean PNC’s publicly-reported earnings for the applicable calendar year adjusted, on an after-tax basis, for the impact of the items set forth below: • items resulting from a change in tax law; • discontinued operations (as such term is used under GAAP); • acquisition costs and merger integration costs; • any costs or expense arising from specified Visa litigation (including Visa-litigation-related expenses/charges recorded for obligations to Visa with respect to the costs of specified litigation or the gains/reversal of expense recognized in connection with such obligations) and any other gains recognized on the redemption or sale of Visa shares as applicable; • acceleration of the accretion of any remaining issuance discount in connection with the redemption of any preferred stock, and any other charges or benefits related to the redemption of trust preferred or other preferred securities; and • the net impact on PNC of significant gains or losses related to BlackRock transactions. “Economic capital” means total economic capital for PNC on a consolidated basis as that term is used by PNC for its internal measurement purposes, and average economic capital for the applicable calendar year will mean such average economic capital as calculated by PNC for internal purposes. For the 2016 performance year, the Committee-approved ROEC hurdle level is related to PNC’s cost of capital and is set at 7.43%.

Examples of ROEC in a sentence

The “ROEC hurdle” for a given risk performance year will be the risk performance hurdle specified for that performance year by the Compensation Committee no later than March 30th of that performance year for purposes of comparison of ROEC to such hurdle for this Award.
In the event that the Compensation Committee does not set an ROEC hurdle for a given risk performance year, the Review Committee will set such hurdle for purposes of this Award Agreement.
The hurdle for the 2015 performance year for purposes of comparison of ROEC to such hurdle for the Senior Leaders Program 2013 and 2014 Stock-Payable Performance Restricted Share Units awards is also set at 7.76%.
Tenant and Landlord each hereby agree to indemnify, defend and hold harmless the other from and against any liability from all claims for commissions arising from the negotiation of this First Amendment.
An Annual Risk Performance Review is required with respect to a given performance year if triggered by either or both of the following criteria: (1) the Compensation Committee requires a review in its discretion; or (2) PNC’s return on economic capital, with specified adjustments (“ROEC”), is less than the applicable Compensation Committee-specified ROEC hurdle amount for that performance year.
The “ROEC hurdle” for a given risk performance year is the risk performance hurdle specified by the Committee (no later than March 30th of that performance year) for purposes of comparison of ROEC to such hurdle.
An Annual Risk Performance Review is required with respect to a given Performance Year if triggered by either or both of the following criteria: (1) the Compensation Committee requires a review in its discretion; or (2) PNC’s return on economic capital, with specified adjustments (“ROEC”), is less than the applicable Compensation Committee-specified ROEC hurdle amount.
For the 2016 performance year, the Committee-approved ROEC hurdle level is related to PNC’s cost of capital and is set at 7.43%.
If Grantee is not assigned to one of those business units as of the Award Grant Date, the specific review trigger applicable to Grantee will be the one that relates to PNC’s ROEC relative to the applicable Compensation Committee-specified hurdle amount unless and until the Review Committee determines otherwise in its discretion.
The Compensation Committee also approved a hurdle related to PNC’s cost of capital set at 7.68% for the 2014 performance year for purposes of comparison of ROEC to such hurdle for the 2013 Performance–Based Stock-Payable Restricted Share Units awards to members of PNC’s Corporate Executive Group.

More Definitions of ROEC

ROEC for a given Performance Year will be calculated as earnings for the applicable performance year, divided by average economic capital for the same calendar year, calculated to two places to the right of the decimal, rounded to the nearest hundredth, where: • “earnings” means PNC’s publicly-reported earnings for the applicable calendar year adjusted, on an after-tax basis, for the impact of the items in paragraph 6 below, and • “economic capital” means total economic capital for PNC on a consolidated basis as that term is used by PNC for its internal measurement purposes, and average economic capital for the applicable calendar year will mean such average economic capital as calculated by PNC for internal purposes. The “ROEC hurdle” for a given risk performance year is the risk performance hurdle specified by the Committee (no later than March 30th of that performance year) for purposes of comparison of ROEC to such hurdle. • The hurdle is related to PNC’s cost of capital, and is set at a level at which the Committee believes ROEC performance below that level for the year could be an indication of a possibly inappropriate level of risk and therefore warrant a risk performance review by the Committee.

ROEC or “Return on Economic Capital” has the meaning set forth in Section 3.5.