Also frequently referenced on HN is the TED talk about how monetary rewards lowers performance in creative endeavours. People in creative jobs are not simply m

Also frequently referenced on HN is the TED talk about how monetary rewards lowers performance in creative endeavours. People in creative jobs are not simply monetary-maximizing machines. They will work hard if their work is interesting and rewarding in all kinds of non-monetary ways. (I also assume that what they think is that if you don't like the work, you'll leave and find one you like better, or that pays better. So you don't get people who don't like the work, don't do a good job, but will try to hang around as long as possible because it pays so well.) Besides, I agree with the other posts that any practical scheme for paying programmers for performance will be subject to issues of "optimization by proxy". Just look at finance: there, where you'd think it would be easier than most other fields to measure "the wealth generated" by people, all that apparently happens is that you incentivize short-term gain at the cost of assuming huge long-term risks.