Link above goes to: The New York Times
Quote from the page:
Op-Ed Contributor
What’s the Value of a Big Bonus?
By DAN ARIELY
Published: November 20, 2008
If our tests mimic the real world, then higher bonuses may not only cost employers more but also discourage executives from working to the best of their ability.
Interesting research indicating that big bonuses actually impair cognitive function despite the motivation they provide. People
want to do well for the big bonus but just having it out there, if I'm interpreting this article correctly, can impair mental function which is a counter-intuitive result which if true could explain a lot.
So remarkably, companies handing out big bonuses may be paying their people to do worse.