The effectiveness of educator incentive programs rests on the assumption that the potential rewards for participants will motivate them to behave in certain ways (e.g., choose certain jobs, expend greater effort, engage in capacity-building professional development). Some researchers have examined the impact of financial incentives on teacher behaviors and work conditions, but few look inside schools to examine how current teachers interpret their rewards, how payouts affect teachers’ willingness to participate in these programs, and how incentives might be structured to motivate teachers. This mixed-methods study of one Teacher Incentive Fund–supported program addresses that gap. We draw on expectancy and goal setting theories to analyze teachers’ reactions to financial rewards and how their reactions may shape the motivational potency of the incentives.