The introduction of performance-related pay (PRP) in the public sector has been one of the main trends in public management reform in the last two decades. However, it seems that PRP regimes have been loosened or even taken off the reform agenda, often with the notion that they were not used as planned, failed to deliver, and ultimately were stalled as being a control instrument incompatible with the existing administrative culture. Focusing on the local government level in Germany, France, and Italy, the authors explore the why PRP systems have failed to manifest a core position within in performance-oriented reform agendas. Diffusion and implementation practices in the three countries show significant differences, which have led to significant heterogeneity to as well as variance in the implementation of PRP.