Cumulative Earnings definition
Examples of Cumulative Earnings in a sentence
The performance metrics are (i) Relative Total Shareholder Return, which accounts for (# of) units of the total target award as set forth in section 1(c), and (ii) Cumulative Earnings Per Share (“CEPS”) which accounts for (# of) units of the total target award set forth in section 1(c).
Cumulative Earnings Per Share shall be equal to the sum of the Earnings Per Share (“EPS”) for each fiscal year of the Company during the Measurement Period.
The parties hereto acknowledge and agree that the Cumulative Earnings Per Share amounts reflected in the Vesting Table are based on assumptions pertinent to the number of Shares issued and outstanding as of the Date of Grant.
Whether and to what extent the Target Performance Equivalents shall vest shall be determined by comparing the Company’s Adjusted Cumulative Earnings Per Share (“EPS”) and Free Cash Flow as a Percentage of Sales (“FCF”) during the Performance Period.
For the avoidance of doubt, if the Company fails to achieve at least the Earnings Per Share Threshold, an Employee shall be entitled to receive no shares of Stock with respect to seventy-five percent (75%) of the Performance Based Restricted Stock Units subject to the Award (as described in Section 2), unless the deemed Cumulative Earnings Per Share from Continuing Operations provisions in this Section specifically modify such result.
If the Company’s Cumulative Earnings Per Share from Continuing Operations is less than the Earnings Per Share Threshold, the Employee shall be entitled to receive no shares of Stock with respect to seventy-five percent (75%) the Performance Based Restricted Stock Units subject to the Award.
For example, if the Company’s Cumulative Earnings Per Share from Continuing Operations is $0.75, the Earnings Per Share Target is $1.00 and the Earnings Per Share Threshold is $0.50, the Employee shall be entitled to receive shares of Stock equal to 56.25% of the Performance Based Restricted Stock Units subject to the Award (i.e., 75% of 75% of the Performance Based Restricted Stock Units subject to the Award).
If the Divestiture Date occurs after the Performance Period but during the Vesting Period, the Cumulative Earnings Per Share from Continuing Operations and Average Return on Invested Capital during the Performance Period shall control (i.e., actual performance shall control).
Whether and to what extent the Target Performance Units shall vest will be determined based on the Company’s Adjusted Cumulative Earnings Per Share (“EPS”) and the Company’s total shareholder return (“TSR”) relative to the TSR of a Peer Group (as defined below) (“Relative TSR”) during the Performance Period.
If the Company’s Cumulative Earnings Per Share from Continuing Operations is an amount between the Earnings Per Share Target and, as applicable, the Earnings Per Share Threshold or the Earnings Per Share Maximum, the Employee will receive a percentage of the Performance Based Restricted Stock Units subject to the Award determined through straight line interpolation to Earnings Per Share Target.