School districts in Michigan and across the nation must continue to meet federal and state mandates to compensate educators, including administrators, on the basis of performance. The traditional salary schedule is considered by many to be outdated and ineffective because it does not base administrator compensation on job performance. The purpose of this study was to analyze administrators’ perception on how his or her motivation and job performance has been impacted by a merit pay program. This descriptive case study research analyzes survey data, focus group interviews, and personal interviews to provide an in-depth study of an administrator merit pay program in a suburban school district in Michigan. The major findings of this research revealed merit pay nor the amount of merit pay impacts motivation or job performance for a majority of administrators.