This brief issue paper offers an overview of the key issues involved in the pay-for-performance plan, as it applies to compensating teachers. Paying teachers on the basis of performance, as a way to improve the quality of teaching, has gained support in recent years. This paper examines the practice through five leading pay-for-performance models. The models include site-specific and statewide programs. Specifically, this paper: (1) presents some of the arguments of proponents and opponents of pay-for-performance systems; (2) provides a list of crucial questions policymakers need to ask when thinking about implementing pay-for-performance systems; (3) discusses lessons learned from the five leading programs; (4) presents a side-by-side comparison chart of the major features of the five programs; (5) summarizes the primary components of each of the five programs; and (6) provides Internet sources for further information on each of the five programs. (Contains 13 references.) (WFA)