What are the best incentives to offer executives for higher performance?

Monetary incentives will only play a small role in motivating executives. Executives are typically motivated by autonomy, recognition, opportunity for growth, freedom and to have direct impact on the bottom line.
Executives need to know what they are expected to do (provide measurable goals and specific, regular feedback), why they are required to do it (for buy-in), and to feel like they are being treated fairly and with respect.