The purpose of this research study was to examine the perceptions of Virginia's elementary principals concerning the concept of merit pay for classroom teachers. The problem for investigation was: what are the attitudes of these principals toward merit pay for classroom teachers? To identify these perceptions, a fixed-response-form-questionnaire, Survey on Perceptions of Elementary Principals on Merit Pay for Classroom Teachers, was developed by the researcher. The questionnaire was designed to gather information in six areas of concern: demographics of respondents, outcomes expected if a plan were adopted, opinions for or against merit pay plans, means for evaluation of teachers, resistance expected among teachers, and the most acceptable form of plan. Reliability was established at .85. In a random selection, 300 elementary school principals (26%) were mailed surveys, 269 surveys (89.66%) were returned, 31 (10.33%) principals did not respond. An attempt was made to contact each nonrespondent by telephone to see if there were any particular reasons why the survey was not answered. Nine nonrespondents were contacted, and 8 of them indicated a lack of time as the reason for not responding. Because of the high response rate, it was felt that nonrespondents could not have biased the data, therefore, attempts to administer the survey by telephone were not made. Respondents felt that teachers would become more competitive and less cooperative. Parents would make requests that their children be placed with teachers receiving merit pay, and teacher-filed grievances would increase. Respondents believed in the concept of paying more effective teachers higher salaries, but they were reluctant to recommend the adoption of a merit pay plan. Respondents felt that principals should be the main evaluators of teachers, but they endorsed the use of teachers' peers and outside evaluators. They felt that teacher associations would oppose merit pay. Of the three forms of above-the-scale compensation defined for the study, principals surveyed felt that teachers would find differentiated staffing the least objectionable. It was concluded that, given the attitudes of Virginia's elementary principals, it is unlikely that a merit pay plan can be successfully implemented in Virginia. / Ed. D.