This study was commissioned by the State of Iowa to identify the current status and applicability of performance-based teacher compensation plans. After a review of the literature to establish the current status of merit pay and to identify districts throughout the United States that are presently using performance-based compensation plans, a documentation instrument was developed to analyze types of plans, methods of financing the plans, evaluation systems, purposes of merit pay, and planning for performance-based compensation plans. As a product of analysis of the plans, a database was developed using the following essential elements as checkpoints: demographics, planning, organizational options, participation, evaluators, evaluation process, financial and nonfinancial incentive plans, financial resources, plan monitoring and revisions, and unique characteristics. Analysis of this database and of the unique characteristics of various plans resulted in identification of 10 exemplary districts that were studied further by telephone interview. Results of these indepth studies are included in the "findings" section of the report. A bibliography is included. (TE)