Wealth CreationWealth Creation evaluates your ability to create wealth during your tenure as Management. It examines three measures:
- Cumulative Profits, the sum of all company profits;
- Cumulative Free Cash Flow, the sum of all of the Free Cash Flows since you took over
management of the company;
- Market Capitalization, the current value of your stock price times shares outstanding.
Each measure is worth up to 33 1/3 points. Since we are looking at accumulated wealth, the targets increase each year:
| Cumulative Profits ($M) | Cumulative Free Cash Flow ($M) | Market Capitalization ($M) | |
|---|---|---|---|
| Year 1 |
$6
|
$7
|
$25
|
| Year 2 |
$11
|
$8
|
$31
|
| Year 3 |
$18
|
$10
|
$37
|
| Year 4 |
$27
|
$13
|
$43
|
| Year 5 |
$38
|
$17
|
$53
|
| Year 6 |
$51
|
$22
|
$67
|
| Year 7 |
$66
|
$28
|
$85
|
| Year 8 |
$84
|
$35
|
$107
|
If you do not reach the target, you can still earn points. For example, if your Year 4 Cumulative Profits is $18 million, it would earn
$18/$27 * 33 1/3 points = 22 points