In this paper we report on research examining the revealed preferences of teachers in Denver Public Schools who were given the opportunity to select between remaining on a traditional salary schedule or opting in to one of the nation's highest profile pay reform systems, Denver's Professional Compensation System for Teachers. The incentive structure creates differential earnings risk for teachers according to their experience and measured effectiveness as well as their staffing assignment and school. We find that teachers are generally responsive to the eligibility criteria, but many teachers who would have earned more under the new system chose not to participate. Survey evidence suggests that teachers' notions of fairness and confusion about the structure of the new system may have contributed to these decisions. The following are appended: (1) ProComp Program Information; and (2) Survey Details.