Driving Superior Returns
To deliver superior returns for our shareowners, and justify continued investment in new plant and equipment or in buying new businesses, we must generate returns significantly above the cost of capital. Thus our financial scorecard calls for the combination of:
- Strong dividend growth;
- An efficient balance sheet; and
- Consistent improvements in ROIC.
Aligning Management Incentives
Our new management incentives for 2008–2011 are closely aligned with the achievement of the financial performance scorecard. Our annual incentive plans require a balanced delivery of top-line growth and margins, and the Long Term Incentive Plan requires a balanced delivery of earnings growth and improvement in ROIC.