To summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the person’s mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance. Dan Ariely
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When people are given high performance-based incentives, they tend to give the best effort they can. However, when the level of performance-based incentive is very high, it can distract their mind from performing the task at hand. This distraction could reduce their level of performance and ultimately hurt them.

Source: The Upside Of Irrationality: The Unexpected Benefits Of Defying Logic At Work And At Home

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