Performance pay can be implemented in ways that are helpful to students and teachers, or it can repeat the mistakes of the past. To avoid these mistakes, initiatives must address the district factors that affect schools. There are six cornerstones for compensation reform: 1) Performance-based compensation is a systemic reform; 2) Compensation reform must be done with teachers, not to teachers; 3) Compensation reform must be organizationally sustainable; 4) Performance-based compensation must be financially sustainable; 5) A broad base of support is required in the district and community; and 6) Performance-based compensation must go beyond politics and finances to benefit students.