However Rotorua Boys' High School principal Chris Grinter said he saw a change in funding as a positive move.
"I'm excited for sure because I think the best of our teachers should be financially recognised for their excellent work. We should be recognising and rewarding the very best," Mr Grinter said.
He said the model needed to be worked out and explored but that shouldn't take away the opportunity for top teachers to benefit. "Every profession gives bonus payments as a reward for those who are the very best, so it should be the same for teachers."
Mr Grinter said said he wasn't uncomfortable with school funding shifting to achievement-based funding as the current decile model contributed about 12 per cent of the school's operational funding.
Kaitao Middle School principal Rory O'Rourke supported the decile-based funding system but agreed hard working teachers did need to be recognised. "We're all for it. We are a decile 2 school and we certainly need the money to provide the programmes we do," he said. "I think in this day and age teachers need to have a clear career structure and performance based funding will help with that and also help with retaining some of our top teachers in the classroom."