Justification is given for paying relatively large salaries to college administrators, specifically the president or chancellor and the chief academic officer. Three administrative task areas are discussed as criteria: management, administration per se, and leadership. It is contended that only leadership can be used as a criterion for administrative performance. Using models like McGregor's Theory X and Theory Y, the paper claims that authority ultimately rests with the academic community, if not by state statute then by the very nature of an academic community. (Author/SPG)