Some perceive establishing performance contracts for administrators as the first step toward creating a performance-based pay system for all employees. However, many are concerned that performance contracts could unfairly hold administrators accountable for factors beyond their control. Instead of blindly embracing one reform after another, districts can concentrate their efforts on improving specific issues. An additional potential benefit of performance contracts is a detailed, feedback-oriented evaluation system. The standard checklist evaluation is unsatisfactory and the system of pay unfair, Murphy and Pimentel argue.
Job performance is irrelevant.
Performance contracts in the Houston Independent School District allow the school board to buy out the remainder of a superintendent's contract if his or her job performance is unsatisfactory. This can save the district considerable time and money that would be involved in traditional dismissal. Other supporters contend that performance contracts are not really about money, but are instead a symbolic demonstration of accountability. Most superintendents and board members agree that performance bonuses should be capped below 10 percent of the base salary. Murphy and Pimentel caution that performance contracts should provide administrators with a support system that gives them a chance to improve before their salary is reduced.