Ed in ’08’s Roy Romer posts this about the DC plan. Much better basic breakdown than I offered.
Romer lays out the DC plan and says this:
Rhee’s plan would place teachers on two tracks. The first track would remain the same – teachers can opt to maintain tenure and the traditional salary structure. The second track, which would be completely voluntary, would provide bonuses for those teachers who opted out of tenure. In other words, they would have a strong incentive to improve student performance.