The current teacher salary scale has come under increasing fire, and for a reason. Systems where people are treated more or less the same suffer from two basic problems. First, there will always be a number of "free riders." Second, and relatedly, some people may feel their contributions aren't sufficiently recognized. So, what are good alternatives? I am not sure; but based on decades worth of economic and psychological research, measures such as merit pay are not it.
Daniel Pink was recently interviewed on a local Washington, D.C. television show along with a local university official. You watch it all here, but I thought the few minutes he spent discussing the role of grades, autonomy and inquiry in education to be particularly thought-provoking.