Measuring Performance with ROI and Residual Income

The readings for this module focus on different ways of measuring segment performance. In addition to being a good management practice, segment performance is also often evaluated to determine the compensation or bonuses for managers. Do you think compensation for senior segment managers should be tied to segment performance? Why or why not? Which method of evaluation do you think would be best, and why? Embed course material concepts, principles, and theories, which require supporting citations, along with at least one scholarly peer-reviewed reference to support your answer unless the assignment calls for more. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.