The Lexington Institute has released a report http://lexingtoninstitute.org/docs/788.pdf "Charter School Models for Merit Pay for Teachers," which includes a thorough description of the merit pay system being used by the Liberty Common School in Fort Collins.
Liberty Common School's principal, Russ Spicer, is quoted:
"We liken our model to the free market economy system: If you perform well and have good results you will be rewarded for that no matter how long you have been employed or how many degrees you hold," Spicer commented. "They know they will be rewarded for the positive results they produce."
Liberty's merit pay system has three components: 1) performance evaluation and ranking for the current performance period; 2) salary administration; and 3) professional development. Teachers are ranked on content knowledge; designing, planning, documentation, and assessment of work; pedagogy, instruction, and delivery; classroom management; and supplemental responsibilities. Liberty Common School plans to add another component in the near future: student academic achievement.
According to Russ Spicer, "The goal is to give the teacher who is below the desired pay range more money to move that teacher closer to the desired pay range more expeditiously. Once the teacher is in the appropriate salary range for the band ranking, that teacher will receive the 'standard' salary increase for that year."
Liberty Common School is a model visitation school for the Core Knowledge Foundation, the curriculum used by the K-9 school. Moreover, in 2005 Liberty Common School received the prestigous national Blue Ribbon School award and has received the state John J. Irwin School of Excellence numerous times.