No discussion of education is complete without the libertarian view that government should have no role in education whatsoever.
In a purely private enterprise system of education, the owners of the school would have powerful incentives to keep good teachers and--just as importantly--incentives to FIRE lousy teachers. After all, the owners have to provide quality education to the students and their parents.
Now, truly magnificent teachers would be given great compensation, in order to make it hard for them to quit. But if a magnificent teacher asked for more than he was worth, the employer would have to let him go, with regrets.