The study examined principal input in decisions affecting administrative compensation through the framework of a state-mandated meet-and-discuss model. The model seeks to strengthen management team relationships while guaranteeing administrators a minimal level of participation. The following are discussed: (1) conceptual and empirical underpinnings; (2) participative decision-making; (3) pay design; (4) the Pennsylvania Meet and Discuss Model for determining administrative compensation; and (5) the design and methodology of the study. From a sample of 420 elementary and secondary principals, responses were received from 341 (80.5 percent) administrators. The findings confirmed that administrator involvement in the determination of wages, salaries, or fringe benefits resulted in more positive attitudes of organizational loyalty and satisfaction. The study revealed that designing administrative compensation through the framework of a state-mandated meet-and-discuss model exerted positive influences on school climates and work relationships among principals, superintendents, and school board members. Factors affecting the research is discussed. A nine-page bibliography is included. (SI)