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Recent national and state standards of accountability have focused on increasing student performance and achievement as well as teacher quality. Included in this challenge is the issue of teacher compensation and how it has evolved with the efforts of providing quality instruction in order to improve the performance of students. Texas has developed and implemented innovative pay systems that focus on student achievement through the process of improving teacher quality. Most recently, the 79th Legislature of Texas passed House Bill One which funded the largest investment in teacher incentives with two teacher incentive programs that would provide $320 million annually to eligible school districts and campuses. This study focused on the Texas Educator Excellence Grant (TEEG) program which provided over $100 million annually to Texas’ most economically disadvantaged campuses that demonstrated high levels of student achievement as indicated on the state’s academic accountability system. Relationships between student academic performance at the 4th grade level and the total number of years of grant implementation within the 3 cycles of TEEG were analyzed, specifically passing percentages on reading, math, writing and all tests taken for students meeting minimum standards. Overall results of this study showed statistically significant differences in passing percentages in the areas of reading, math, and all TAKS [Texas Assessment of Knowledge and Skills] tests. No statistical difference was found in the area of writing TAKS. The year 2008 had the highest positive coefficient in the areas of reading and math, while 2007 had the highest positive coefficient in writing.