Finding the best possible people who can fit within your culture and contribute within your organization is a challenge and an opportunity. Keeping the best people, once you find them, is easy if you do the right things right and I think a result-based rewarding system must be one of this right things. But the system has to work both orientations, performance should be rewarded too. Otherwise it can create workplace confusion, hurts communication and makes people feel as if they don't know what is expected from them. In my opinion it seems to be just one problem, with the directors one.