Question
Some of the Board of OCC are on the Remuneration Committee and are considering the use of only ROI as the major performance measure for
Some of the Board of OCC are on the Remuneration Committee and are considering the use of only ROI as the major performance measure for the managers. Some of the Committee members believe that they may need to adjust the way they use financial measures of performance. Give a BRIEF critical review of OCCs methods of measuring the performance of its managers and explain what you could advise the Board of OCC about the choice of Financial Performance Measures such as ROI and EVA? NOTE DO NOT include a discussion of non-financial performance measures in this answer! Note that the board does NOT want information on non-financial measures such as Balanced Scorecard, ONLY the advantages and limitations of only using financial measures. DO NOT STRAY off what is required in questions such as this as no marks can be awarded for discuss
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