This report provides the Career Ladder Committee of Peoria Unified School District, Peoria, Arizona with an evaluation of the school district's Career Ladder Compensation Plan (CLCP). The Far West Laboratory for Educational Research and Development, in February, 1989, was contracted to assess the impact of the CLCP on teacher work and school operations in the district. The study was to provide the Committee with information on the strengths and weaknesses of this alternative teacher compensation program for use in shaping further refinements of the plan, now in its fourth year of implementation. The first section of this evaluation report provides information on the background of the plan and reasons for establishing it. Section 2 presents an overview of the plan and includes descriptions of the organization and functions of the plan, career ladder budget allocations, and a profile of career ladder teachers. In Section 3, findings are presented on the effects of the career ladder on teachers, school organization, and student achievement. An assessment is included of the components of the career ladder plan. The appendices include the survey questionnaires used in gathering data for this report, budget allocation charts, teacher profiles by grade and subject level, and the survey reponses from participants. (JD)