What are the potential downsides of linking executive compensation too closely to Average Return on Equity?

Nov 1, 2024 ... What is return on equity (ROE)? ... Return on equity (ROE) is a financial ratio that tells you how much net income a company generates per dollar ... Apr 20, 2023 ... Return on equity (ROE) is an important financial metric that investors use to measure a company's profitability. Here's how it's calculated. Nov 12, 2021 ... For example if an investor receives $10 in annual distributions on an investment of $100, their return on equity is 10%. As a metric, ROE is ... 20 Return on assets = Net income ÷ Average total assets. 21 Return on equity = Net income ÷ Average shareholders' equity. 22 Return on invested capital (pre ... Feb 4, 2025 ... What Is Return on Equity (ROE)?. Return on equity (ROE) is a financial ratio that indicates how efficiently a business generates profit from its ... Dec 24, 2023 ... It is calculated as net income divided by average shareholders' equity. A higher ROE means management is using investments effectively to ... A key question for utility investors and utility customers is the allowed level of return on equity (ROE). So what is ROE and how is it determined? Return on equity (ROE) is a calculation that's important to understand and calculating a property's annual rate of return is based on this fundamental ... Mar 3, 2025 ... ... investments effectively. Because of this, companies often strive for an ROE that's above the average for their industry. When investors ... Return on Equity by Sector (US) ; Broadcasting, 22, -9.12%, -9.12% ; Brokerage & Investment Banking, 30, 13.11%, 12.98%.