Not sure if this is the right category to post this under but hey, I'll give it a try.
What he says, essentially, is that the traditional carrot is not only, as I remember Drucker writing, difficult to use with a high risk of reward inflation, but actually counter productive. Knowledge workers that work with a material incentive gets blocked and perform worse than knowledge workers without a material incentive.
Pink seems to be able to back this up with quite a lot of empirical evidence.
I immediatly start thinking about the (sales - or fundraising really but I guess the same rules apply?) organisation I work within, we swear by a salary that is made up by a base salary, a performance based provision and a financial reward for loyalty/longevity. Looks like we're doing it all wrong? =/