You write down some goals and discuss with direct supervisor. After 1 year, another meeting to see how well you did, and you get a rating like "Succeeded", "Succeeded+" or even "Excelled". Set some new goals for the next year, rinse and repeat.

For promotions, you give a 1-2hr presentation on the work you've done to a group of other developers and managers not directly working with you. Work done needs to match 51% of the competencies to go to the next level. Usually the pay increase is 10% per level (promotion).

It's practically impossible to get fired. Only way is up.