The Teacher Compensation Group of the Consortium for Policy Research in Education (CPRE) has been studying the design and effectiveness of such systems for nearly a decade. The Group initially focused on school-based performance award programs, in which each teacher in a school receives a bonus for meeting or exceeding schoolwide student achievement goals (Heneman, 1998; Heneman & Milanowski, 1999; Kelley, Heneman, & Milanowski, 2002; Kelly, Odden, Milanowski, & Heneman, 2000). They then shifted attention to knowledge- and skill-based pay (KSBP) plans, an approach that provides teachers with base pay increases for the acquisition and demonstration of specific knowledge and skills thought to be necessary for improving student achievement. The initial research described a variety of experiments with KSBP plans (see Odden, Kelley, Heneman, & Milanowski, 2001). They found plans that were rewarding numerous knowledge and skills, including (a) additional licensure or certification, (b) participation in specific professional development activities, (c) National Board Certification, (d) mastery of specific skill blocks such as technology or authentic assessment, (e) leadership activities, and (f) teacher performance as measured by a standards-based teacher evaluation system. They also found districts experimenting with standards-based teacher evaluation without an intended pay link. As described below, in standards-based teacher evaluation systems, teachers' performance is evaluated against a set of standards that define a competency model of effective teaching. Such systems replace the traditional teacher evaluation system and seek to provide a more thorough description and accurate assessment of teacher performance. Findings from their research on some of these systems are the focus of this issue of CPRE Policy Briefs.