Long Term Incentive Plan
Relative Total Shareholder Return
Calculation as of February 3, 2012
The average 20 day stock price as of January 1, 2010 is $38.24 (based upon stock prices from December 3, 2009 to December 31, 2009). As of February 3, 2012, the 20 day historical stock price is $48.73 (based upon stock prices from January 6, 2012 to February 3, 2012). Further, Test Company 1 has paid out $1.35 in dividends through the Performance Period. Therefore, Test Company 1 has yielded a TSR of 27.43% calculated as follows:
| TSR = 27.43% = | $48.73 − $38.24 + $1.35 |
| $38.24 |
Comparatively against the components of the S&P 500 during the same Performance Period, this ranks # 211 of 447, or the 53rd Percentile. Therefore, based on the 53rd Percentile, as of February 3, 2012 it is expected that 112.00% of Target Awards will vest. In summary of the S&P 500, the TSR at the payout thresholds are the following:
| S&P 500 Ranking | TSR |
|---|---|
| 75th percentile | 47.56% |
| 50th percentile | 25.31% |
| 25th percentile | 1.54% |
Note that this number will change dependent on performance over the remainder of the performance period. (To download the 20 day preceding TSR of each member of the S&P 500 since January 1, 2010 by stock symbol, please click here.)
Other Information
For the tax consequences of your Performance Period, click here.
To download the Test Company 1 Long Term Incentive Plan click here.
To contact Human Resources, e-mail or call (555) 555-1212.