Required Return

Example Definitions of "Required Return"
Required Return. Equal to the beginning of the year Invested Capital times the Blended Cost of Capital. This return is required before executive bonuses are eligible for payment. Amounts in excess of the Required Return equal MVP for bonus purposes. Required Return will be adjusted quarterly on a time-weighted basis, except that interest rates will be averaged. No adjustment will be made in the fourth quarter of the Fiscal Year
Found in RLI Corp. contract
Required Return. Equal to the beginning of the year Invested Capital times the Blended Cost of Capital
Found in RLI Corp. contract
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