Wow, this is one of the coolest things HN has found in awhile. It's remarkable how, time and time again, formal incentive compensation schemes are shown to cause more harm than benefit. I started paying attention when Joel Spolsky called it out 6-7 years ago, and then read Peopleware (an excellent book) which reiterates the point (and calls it "teamicide"), and then read the Harvard Business Review article ("Why Ince…
I wonder if Fog Creek has had the similar frustrations with engineering ladders that Piaw mentions. Although given the distinct difference in company size, it might not be a valid comparison.