Bear in mind that the calculation includes ~$2.4bn of mostly legacy goodwill, which arguably inflates the true economic capital base of PRY's business. If you were to exclude this and look at the return on 'tangible' equity (i.e. exclude goodwill), the ROIC would be an order of magnitude higher (>50%).
To make the LTI metric comparable, you would have to write-off some or all of the goodwill and then lift the ROIC target to a level which is more reflective of the economic reality. As it stands, the LTI arguably distorts management behaviour because the incentives are quite friendly to heavy incremental capital investment because it takes a LOT to move the dial when your capital base is loaded with a stack of old goodwill from when the business was a different beast under Bateman with the capitalised $500k sign-ons for GPs...
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