By coincidence (though I don't think it is coincidence) Jeff Atwood's latest blog post at Coding Horror, "The Vast and Endless Sea" (http://www.codinghorror.com/blog/2010/06/the-vast-and-endles...) is about the same thing: how offering lots of money is detrimental for creativity and motivation.

I agree with his recommendation at the end: watch the 10 minute video "RSA Animate - Drive: The surprising truth about what motivates us".