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The Teacher Incentive Fund (TIF) provides grants to support performance-based compensation systems for teachers and principals in high-need schools. The study measures the impact of pay-for-performance bonuses as part of a comprehensive compensation system within a large, multisite random assignment study design. The treatment schools were to fully implement their performance-based compensation system. The control schools were to implement the same performance-based compensation system with one exception–the pay-for-performance bonus component was replaced with a one percent bonus paid to all educators regardless of performance. The report provides implementation and impact information after four school years. Implementation was similar across the four years, with most districts implementing at least three of the four required components for teachers. In a subset of 10 districts participating in the random assignment study, educators’ understanding of performance measures improved over time. However, many teachers were unaware that they were eligible for a bonus, and their understanding did not improve after the second year of implementation. Teachers also underestimated the maximum amount they could earn. The pay-for-performance bonus policy had small, positive impacts on students’ reading and math achievement. Contains appendices. [For the Executive Summary, see ED578856.]