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He rejected any proposed projects that did not meet his target return on capital of 15%.
Defining risk-adjusted profitability targets requires estimating the cost of equity capital for the bank and then translating it into a target return on capital at risk.
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William Shirley at Liberum Capital said the Kier offer was probably a knock out bid: Whilst the price looks relatively full (35% premium to Costain's bid) synergies are higher (£20m versus £10m) and management still target return on invested capital of 15% in 2015.
Is that how he intends to stick by its targets for return on capital?
It has also started to set tough internal targets for return on capital employed a revolutionary idea in a company where cross-subsidy between different divisions was ubiquitous and opaque.
PetroBras now has targets for return on capital and cost trimming.
Jaffr has linked compensation for key executives directly to return-on-capital targets.
But Jaffr has linked compensation of key executives directly to his ambitious return-on-capital targets.
He rejected any proposed projects that did not meet his target of a 15% return on capital.
Mr. Kline is eligible for bonuses of as much as $3.1 million this year if he meets performance targets on operating income, return on capital and sales volume increases, company filings show.
Among Lehner's targets: a 16% return on capital employed and net margins of 4.5%.
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