The primary purpose of this study was to develop a turnkey model of a more comprehensive and accurate merit pay plan based on the total systems approach to teacher evaluation. This study reviewed the current incentive pay literature and validated the need, potential format, variables, and procedures for the development and implementation of the plan's algorithms. Finally, this study examined the cost feasibility of the model in terms of teacher compensation using a California school district's financial infrastructure;The review of literature substantiated three overwhelming reasons for the use of teacher performance-based pay plans: (1) to increase recruitment and holding power of the teacher work force; (2) to improve the professionalization of teaching; and (3) to provide a sound evaluation system and supporting procedures. These reasons were further supported by current effective schools research, the public's request for school accountability, and the emphasis on school restructuring;The plan's paradigm included three measurable components: the Supervisor's Rating, the Student Achievement Factor, and the Student Feedback Report. The Supervisor's Rating consisted of the formative observations and summative evaluation of the teacher's performance based on pre-established criteria outlined in a Teacher Performance Indicator Bridge. This variable was based on the School Improvement Model (SIM) Project's Teacher Performance Evaluation cycle and procedures. The Student Achievement Factor was based on the percent of a teacher's students successfully meeting a pre-determined mastery level on a district developed criterion-referenced mastery test. This variable also considered the teacher's class size, students' attendance, transfers and behavioral concerns. The Student Feedback Report surveyed students' perceptions of the teacher's instructional skills using a valid and reliable questionnaire;The feasibility study applied the performance-based plan using a hypothetical school district's staffing demographics and salary schedule. This demonstration provided an example of the cost feasibility of implemenation in terms of teacher compensation. The information was presented in a matrix format to demonstrate varying degrees of qualifying teachers and percents of salary. The findings indicated compensation awards were consistent with established incentive pay plans;Considering the limitations binding a non-statistical study, the major conclusion reached was the development of a cost-feasible and comprehensive performance-based pay plan.