[WalterBright]

Large companies still have plenty of incentive pay.

Currently, teachers have zero incentive to get results. I bet you'll see results that follow incentives. Of course it won't be perfect - but I bet it'll be much better than the current disaster.

People like money. Especially the people who say they aren't motivated by money :-)

[saagarjha]

I work for a large company notorious for shooting itself in the foot because someone’s personal incentives to ship a shiny new thing and get promoted causes long-term repetitional harm as older things get abandoned. We pay for performance too, and quite well at that :)

[wcarey]

Have you thought out the perverse incentives your pay scheme would create?

[viraptor]

Like teachers giving answers to students because higher grades / more passing means more money...

[WalterBright]

Have a third party do the testing.

[wcarey]

While that might (or might not) mitigate one perverse incentive, there are lots more. It's important for policy proposals to take unintended consequences into account. What others can you foresee and how would you mitigate them?

[duckmysick]

What will be their incentive? Bonuses for the number of tests graded?