This excerpt taken from the ALL DEF 14A filed Apr 2, 2007.
LONG-TERM CASH INCENTIVE AWARDS, 2004-2006 CYCLE
The average adjusted return on equity measure compares Allstate's performance to the peer insurance companies listed on page 20. Allstate's ranked position relative to this peer group determines the percentage of the total target award for this performance measure to be paid, as indicated in the following table. No payment is made unless the average adjusted return on equity exceeds the average risk free rate of return on three-year Treasury notes over the three-year cycle, plus 200 basis points, regardless of Allstate's standing compared to the peer group. For the 2004-2006 cycle, we achieved the 6th position and met the target level of performance. In addition the average adjusted return on equity exceeded the average risk free rate of return by 1,394 basis points.