We have the technology

I believe the subject of incentives in software development have been proved to be harmful for a development team for a long time. By introducing an incentive pay scheme where a team can get more money based on performance will have disastrous effect on team morale and cause wedges between team members. Not only that but you're now encouraging the dev team members to fudge the system so they can receive extra pay and avoid looking bad. Both of these topics have been covered pretty thoroughly by Joel Spolsky on his blog. http://www.joelonsoftware.com/articles/fog0000000070.html http://www.joelonsoftware.com/items/2006/08/09.html