Our objective is to significantly reduce the cyclicality of our revenue base by increasing our non-transactional and contractual business and by diversifying into non-print businesses. As Chief Financial Officer, my greatest challenge will be to get maximum shareholder return for every dollar we invest -- this has meant establishing a new set of strategic and financial metrics for Bowne.
WE BELIEVE THAT LONG-TERM FREE CASH FLOW GENERATION IS KEY TO CREATING VALUE FOR OUR SHAREHOLDERS.
Measuring our performance in generating free cash flow will enable us to diversify and to manage our working capital and fixed assets effectively. All capital expenditures and acquisitions are now being subjected to rigorous analysis to measure their potential free cash flow generation. Security analysts have responded very favorably to the introduction of these metrics.
The financial metrics will be coupled with measures that capture the essence of Bowne as a service company. Superior customer service is key to Bowne's historic success. As we move into our new lines of business, this dedication to quality and customer satisfaction will be critical to building the long-term loyal customer relationships that result in growth with solid profit margins. Therefore, our new strategic planning process sets goals and provides measurements in the areas of customer satisfaction, innovation, and employee development and training. The achievement of these goals is an integral part of measuring our progress.
We have also taken a major step to align our executive compensation with shareholder goals by establishing an entirely new incentive compensation plan for Bowne's senior executives. It is designed to retain our skilled management team in the core businesses, to attract the aggressive managers who will grow our new businesses, and to reward management based on the key performance measures that improve shareholder value. For the first time, we have tied a sizable portion of operating unit bonuses to overall corporate profitability.
To align management and shareholder interests, those executives who exceed annual goals will be paid for performance above goal in Bowne stock placed in a deferred plan. To further focus management on the long-term nature of our business goals, we have also introduced a long-term incentive plan to be paid in a mixture of cash and deferred stock grants.
The deferred stock grants are new to Bowne, which historically used a more traditional stock option plan. Grants are earned by current performance and, under normal circumstances, paid upon retirement thus increasing real ownership by our executives.
WE BELIEVE THESE DEFERRED STOCK GRANTS WILL MAKE OUR EXECUTIVES THINK MORE LIKE LONG-TERM INVESTORS, AND MAKE DECISIONS AS YOU OUR SHAREHOLDERS DO.
We have embarked on a journey to diversify our revenue base, and double the size of our company. We do this with an unshakable commitment to protect our most valuable assets: our financial health, our client relationships, and the Bowne family. Our capital expenditures and acquisitions will create value, and our cash flow will be effectively managed. We will measure our progress toward shareholder value creation. The free cash flow metrics will impose a valuable discipline on this process, especially when coupled with the traditional earning per share growth and return on equity measures.