Operating Return on Equity

Operating Return on Equity. The 'Operating Return on Equity' of the Company as of any date shall equal the Company's operating income as a percentage of average shareholders' equity, excluding accumulated other comprehensive income and after-tax unrealized gains (losses) on derivative financial instruments. Operating income is defined as net income (loss) excluding after-tax realized gains (losses) on investments and after-tax unrealized gains (losses) on derivative financial instruments. In the event of a corporate... transaction involving the Company (including, without limitation, any share dividend, share split, extraordinary cash dividend, recapitalization, reorganization, merger, amalgamation, consolidation, split-up, spin-off, sale of assets or subsidiaries, combination or exchange of shares), the Committee may further adjust the calculation of the Company's Operating Return on Equity as the Committee deems necessary or desirable in order to preserve the benefits or potential benefits of the Performance Retention Awards granted under the Plan, provided that such adjustment may not adversely affect the treatment of the Award as performance-based compensation exempt from Code section 162(m). View More