5. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually
thereafter. Board members agree that such stock price gains are definitely within reach if the
company meets or beats the annual EPS targets and pays a rising dividend to shareholders. The
company’s stock price was $30 per share at the end of Year 10. Your company’s stock price is a
function of earnings per share growth, ROE, credit rating, dividend per share growth, and
management’s ability to consistently deliver good results (as measured by the percentage of
the 5 performance targets that your company achieves over the course of the BSG exercise (the
EPS growth target, the 15% annual ROE target, the B+ or better credit rating, an image rating of 70 or
better, and the above specified annual increases in the stock price).