One of the central challenges of designing and implementing a performance pay program is developing an approach for determining which schools, teachers, and administrators have performed well enough to have earned a bonus. The U.S. Department of Education's Teacher Incentive Fund (TIF) program provides grantees substantial latitude to create…

This chapter considers the design of incentive pay systems for teachers and principals and the challenges facing policy makers who seek to design them. The author argues that policy makers must direct the efforts of teachers and principals toward schools' mission--the acquisition of skills and knowledge among children--and must find ways to link…

Since the announcement in 1999 of a plan to tie teachers' salary increases to student achievement by Denver Public Schools, there has been a flood of nationwide policy activity around teacher compensation. This paper examines pay plans in Denver, Toledo, Minneapolis, and New York City, offering a snapshot of the changing landscape of teacher…