Long Term Incentive Plan
Relative Total Shareholder Return
Calculation as of May 18, 2012
The average 20 day stock price as of January 1, 2009 is $46.87 (based upon stock prices from December 3, 2008 to December 31, 2008). As of May 18, 2012, the 20 day historical stock price is $57.36 (based upon stock prices from April 23, 2012 to May 18, 2012). Further, Test Company 2 has paid out $1.66 in dividends through the Performance Period. Therefore, Test Company 2 has yielded a TSR of 22.39% calculated as follows:
| TSR = 22.39% = | $57.36 − $46.87 |
| $46.87 |
Comparatively against the components of the S&P 400 during the same Performance Period, this ranks # 276 of 348, or the 21st Percentile. Therefore, based on the 21st Percentile, as of May 18, 2012 it is expected that 3.33% of the Relative TSR Target Awards (50% of the Total Awards) will vest. In summary of the S&P 400, the TSR at the payout thresholds are the following:
| S&P 500 Ranking | TSR |
|---|---|
| 85th percentile | 207.18% |
| 50th percentile | 79.80% |
| 20th percentile | 21.45% |
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 400 since January 1, 2009 by stock symbol, please click here.)
Performance Condition
Through June 30, 2007 the Comany's Return on Equity is 3.27%. Accordingly, if vesting occurred today, it is expected that 50.00% of the Return on Equity Awards (50% of the Total Awards) will vest.
Summary
| Performance Metric | Percentage of Total Award | Currently Calculated Award1 |
|---|---|---|
| Return on Equity | 50% | 50.00% |
| TSR Relative to Peer Group | 50% | 3.33% |
| Total Award | 100% | 26.67% |
1Return on Equity Metric updated as of June 30, 2007. Relative TSR updated daily.
Other Information
For the tax consequences of your Performance Period, click here.
To download the Test Company 2 Long Term Incentive Plan click here.
To contact Human Resources, e-mail or call (555) 555-1212.