Most countries base teachers performance on students grade, what criteria would you as a educationist recommend?

I believe that student's performance is one of the criteria to be used.  However, I also believe that a Peer review (in other words a review by the teacher's peer group) would be valuable, as the students alone do not cover all the aspects of a teacher's job, such as the technical aspects, Curriculum preparation, etc.  Teachers also has a lot more activities, tasks and duties that are not visible to students and do not directly relate to student performance, hence a more comprehensive approach to student Performance Evaluation.  I would approach this from a KPI (Key Performance Indicator) perspective were student performance would be one, but not the only, KPI.  Preparation, Presentation Skills and Technical/Subject knowledge would be others, for example.