This presentation discusses strategies upon which to base teacher incentives, and also assumptions within these strategies. The first strategy, influencing teacher turnover rates so that good teachers remain in the profession longer and poor teachers leave teaching sooner, includes consideration of occupational rewards, career structure, benefits, stress, organizational features, and teacher evaluation. The second strategy, attracting higher-quality entrants into teaching from the ranks of talented new college graduates and from the pool of talented persons in other jobs, considers the college freshmen pool, teacher salaries, working conditions, and hiring practices. The third strategy, raising the average performance of already-employed teachers by inducing them to upgrade or use their capabilities more effectively by providing incentive pay, includes discussion of teacher stress, teacher isolation, incentives, and rewards. The fourth strategy, raising the average performance of already-employed teachers by providing both the inducement and the structured opportunities for them to upgrade their capabilities, considers organizational factors, opportunities for professional development, and evaluation and professional improvement. (CB)