Purpose: The purpose of this paper is to examine the characteristics of teacher incentive pay programs used by midsize to large school districts in Missouri. Design/methodology/approach: This study primarily used the Teacher Compensation Programs (TCP) survey data. The TCP survey was developed by the authors to understand the nature and characteristics of financial incentives that Missouri districts used to recruit, reward, and retain quality teachers. Findings: The data showed that, during the 2009-2010 academic year, 32 percent of the districts offered at least one financial incentive to recruit or retain teachers. Districts were more likely to reward teachers for obtaining National Board certification and for assuming extra duties than for teaching in the subject areas of shortage or in hard-to-staff schools. Larger districts with higher teacher salary were more likely than small districts to offer a larger number of incentive pay programs. Originality/value: The findings of this study advance our knowledge of local incentive pay policies. It also contributes to the global discourse of teacher compensation and incentives and can be informative to policymakers in the USA and around the world when designing and implementing incentive pay programs to teachers. Further, it sheds light on the important policy question of whether disadvantaged local educational agencies are more likely to use incentive pay programs to recruit and retain teachers and promote an equitable distribution of the teacher workforce. This informs the decision making of providing targeted support to those in need.