This aspect seems to work about the same as it does in private industry.
There’s a major difference, though. The upper limit of what the yeshiva can pay is determined by factors other than job performance. In private industry, the more valuable you are to your employer, the more they’ll pay you, because you’re making more money for them. That’s only true for a yeshiva to a very limited degree.
but you would probably have to be living in a city where there are more than two schools
That, or be a candidate to move to a different city.