This monograph is a discussion of the nature of master teacher/career ladder programs and related issues and implications for principals. Delineated in the principal's role in career ladder/master teacher programs against the following framework of issues: (1) the clarity of the school board's plan and its resolve to implement the program; (2) the specific purpose of teacher evaluation in the program (involvement or accountability); (3) the range of extrinsic and intrinsic rewards available to teachers; (4) the effect of the plan on teacher morale; (5) the level of district commitment and support; (6) the degree of parental involvement; and (7) the personal and professional development needs of principals. A scenario is then provided that illustrates the elements of an ideal career ladder/master teacher program. An appendix contains a set of questions that principals planning or implementing career ladder/master teacher programs may use for self-assessment or to survey the perceptions of others. (TE)