This paper discusses a system in which student outcomes and teacher effectiveness comprise 70% of a principal's evaluation and the remaining 30% is based on the leadership actions shown to drive better results.
Despite LaRaviere's record of opposition to the mayor's school policies, this principal has won three $10,000 merit pay awards (totaling $30,000) for school years 2011-12, 2012-13 and 2013-14. He may have won one for last year—CPS hasn't announced them yet.
The St. Paul district and its principals are rethinking a new program that offered school leaders up to $3,000 for meeting student achievement and other goals. The district paid out more than $102,000 in bonuses in the program’s inaugural 2012-13 school year. Principals and assistant principals could earn “leadership pay” for hitting targets based on student test scores, discipline, college readiness and attendance, teacher observations and more.
It is altogether appropriate to include the leader of a school in a pay for performance system. This article published by the Center for Educator Compensation reform discusses specific reasons why this is so.