While the article is aimed mostly at these types pay schemes in relation to the teaching profession - the arguments are generic across all occupations.
I particularly like the following paragraph:
"Educational policymakers might be forgiven their shortsightedness if they were just proposing to raise teachers' salaries across the board—or, perhaps, to compensate them appropriately for more responsibilities or for additional training. Instead, though, many are turning to some version of "pay for performance." Here, myopia is complicated by amnesia: For more than a century, such plans have been implemented, then abandoned, then implemented in a different form, then abandoned again. The idea never seems to work, but proponents of merit pay never seem to learn. "