AZ SB1558

Requires school district governing boards to structure superintendent contracts so that at least 20% of total annual compensation and benefits is classified as performance pay.

Establishes performance pay calculation methods unless the school board votes to implement an alternative procedure: 25% based on academic gain compared to the top 60 largest Arizona school districts, 25% based on parent satisfaction survey results, 25% based on teacher satisfaction survey results, and 25% based on criteria selected by the governing board.

Defines academic gain as the percentage of pupils enrolled in the district for at least five consecutive months measured against their academic results in the 2008-2009 school year.

Requires parent and teacher satisfaction surveys to be administered by independent entities using random sampling and anonymity, with parents and teachers assigning letter grades from A (excellent) to F (failure).

Clarifies that the performance pay requirement does not mandate an increase in total superintendent compensation.