Pay-for-performance has come up a lot in the halls of Congress lately. The Pay for Performance Act, approved by the House in April, prohibits the payment of "unreasonable or excessive" compensation not based on performance by banks and other firms receiving federal bailout money. The White House wants performance-based pay for teachers; the plan received initial funding in the stimulus package and will be debated this fall. But one group that could perhaps benefit most from a pay-for-performance scheme is not being considered at all: Congress.
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