In the turbulent climate created by Wall Street, a cloud hangs over the word "bonus" because of the seven-figure excess it connotes.

But bonuses are not a bad thing, if they are reasonable sums paid in recognition of specific achievements. That is the case with the performance pay system the Pittsburgh Public Schools adopted in 2007, which will be expanded and adapted for teachers if funding comes through from the Bill and Melinda Gates Foundation.

This week, 75 administrators started seeing bonuses that totaled $385,000 districtwide, from $420 to a principal who retired June 30 to $13,270 for the principal of Pittsburgh Arlington PreK-8 school. The maximum that could be earned in most buildings was $12,000, but the district offers up to an additional $10,000 at the academies, which use different teaching strategies and have longer class days and more of them than regular schools.

Arlington Principal Cindi Muehlbauer, who topped the list with a bonus of $13,270, also received the highest bonus in each of the last two years. As one would expect from a successful leader, Dr. Muehlbauer attributed her success to the hard work of her staff. This year, her school was one of three accelerated learning academies that met the federal standard of Adequate Yearly Progress, a measure of progress by students on standardized tests.

Beyond principals, the district also offers the potential for bonus pay to high-level academic administrators. In 2007, the district abolished automatic raises for principals, supervisors, other academic officers and assistant superintendents. Since then, their bonuses have been based on specific goals. The bonuses are financed with a five-year, $7.4 million federal grant and funds from the district's budget.

The shift to performance pay was part of the district's effort to transform the role of principal from building manager to instructional leader. Doing so makes the principals accountable for student achievement, the top measure of a school's success. If Superintendent Mark Roosevelt has his way, he will be able to put teachers on a performance pay program, too. Gold stars may be good motivation for the district's youngest students. Extra money for exemplary work is appropriate for professional employees.

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