Difference between Performance Netting Risk and Settlement Netting Risk

I am totally confused between the two? Can anyone shed some light?

when evaluating a set of managers - if you have a situation that all managers are paid on the net profits of the company - and you had a badly performing division (manager) - but overall company earns a profit - you have to pay the badly performing manager his bonus though he actually was performing at a loss. So you are compensating him for his bad performance based on the good performance of others. (Performance Netting).

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Thanks cpk!