This book discusses various pay and compensation initiatives in use nationwide, highlighting: (1) How Are Teachers Compensated?" (current status of teacher compensation and the changing context of teaching); (2) "What Have We Learned from Attempts at Change?" (three approaches to compensating teachers, recent short-lived reform efforts, and other factors supporting compensation reform); (3) "The Elements of Pay and Compensation" (traditional pay, new approaches to pay, pay for behaviors or outcomes, and benefits as part of compensation); (4) "What Is the Relationship between Pay and Motivation?" (theories of motivation, implications of motivation theories for compensation, applications to education, and compensation factors motivating teachers); (5) "Rewarding Individual Teachers for Developing and Deploying Needed Knowledge and Skills" (knowledge- and skill-based pay and examples of such pay structures); (6) "School Bonuses for Improved Student Performance" (group-based performance awards, examples of performance awards, and gain-sharing programs); (7) "Designing and Implementing Alternative Teacher Compensation Systems" (compensation and school improvement, three design strategies, and stakeholder roles); and (8) "Compensation To Enhance Teacher Quality and Supply" (staffing and compensation challenges, issues, and innovations). Two resources present generic models of knowledge- and skill-based pay and principles for implementing change in compensation. (Contains approximately 335 references.) (SM)