Pay for performance does not work

For the last 20 years, the concept of pay for performance has been the key driving force for the free market system. I have always been skeptical of this concept - as it encourages greed and manipulation. I am glad that there are now evidence to back up my gut instinct. See this report:
http://www.todayonline.com/Commentary/EDC120106-0000003/Stop-tying-pay-to-performance