This study described the current state of principal salaries in South Carolina and compared the salaries of similar size schools by specific report card performance and demographic variables. Based on the findings, theoretical models were proposed, and comparisons were made with current salary data. School boards, human resource personnel and principals can collaborate on the results of this study to construct consistent and realistic compensation policies. Highly qualified principals and teachers have a positive impact on any school (Consortium for Policy Research in Education, 2009; Robelen, 2009; Sawchuck, 2009; Southeastern Regional Education Board, 2006; Viadero, 2009; Winn, Erwin, Gentry, & Cauble, 2009). One way tax payers (through their elected board members) show how they value the quality of their principals is by their compensation practices. In South Carolina, minimum salary schedules for teachers are predetermined at the state level. To the contrary, there is no state schedule for principals; salaries are determined by each local school board and vary widely. Unlike classroom teachers, there has been very little research conducted on the principals' performance, their school demographics, their compensation, and virtually none on performance and demographic factors that could affect principal compensation. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]