The top five executives at Marvel Manufacturing are paid annual bonuses based on predetermined earnings goals. These bonuses can be as much as 500% of salary. As a member of the company’s compensation committee, you've been asked to comment on the following proposed changes to the annual bonus plan:
• Use after-tax income from continuing operations as the earnings performance measure instead of bottom-line net income.
• Set performance goals based on return on assets (ROA) rather than on earnings.

• Set performance goals, net income or ROA, based on beating the industry average rather .
than using an absolute performance target.
Required:
What are the advantages and disadvantages of each suggested change?