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Page 1 of 4 Wealth 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 | $60 | | Year 2 | $14 | $10 | $66 | | Year 3 | $24 | $15 | $78 | | Year 4 | $36 | $22 | $88 | | Year 5 | $52 | $31 | $110 | | Year 6 | $73 | $42 | $140 | | Year 7 | $100 | $55 | $180 | | Year 8 | $135 | $70 | $234 | 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/$36 * 33 1/3 points = 16.65 points
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