Leadership and Earning Potential: The Dual Rewards of Becoming a School Principal

Have you ever wondered if you might make a good school principal?

Perhaps you’ve dreamed about leading your own school, being the voice for students who are often overlooked in our education system. Maybe you see yourself shaping instruction in a transformational way, mentoring teachers to reach their full potential. Or, you have a mentor that is constantly reminding you that you’re a natural leader—way more than you realize.

No matter what the case may be, there’s no doubt that making the transition from the classroom to the principalship signals not only a step up in responsibilities, but an increase in your financial future as well. 

At New Leaders, we believe in providing a complete picture of the principalship journey—reminding you of both the meaningful impact that you can make and the very real economic opportunities this career path offers. 

How it begins: seeing yourself in school leadership

The path to the principalship starts with something seemingly small, but incredibly important: seeing yourself there in the first place. Many exceptional teachers like you never consider the principalship because they don’t see themselves in the role. It’s this self-perception—not skill or potential!—is often the biggest barrier to pursuing school leadership.

The path to the principalship starts with something seemingly small, but incredibly important: seeing yourself there in the first place.

Shifting into seeing yourself as a principal might take a bit of work, but with practice, it will become easy to:

• Expand your identity, and move from “I’m a great teacher” to “I’m a great educator who can lead a community of teachers and staff.”
• Recognize your transferable skills. Classroom management, curriculum development and instructional planning, personalized attention to students—these are all classroom leadership functions that can easily scale to school leadership!
• Embrace broader accountability by seeing yourself as responsible for collective outcomes instead of individual results.
• Consider yourself a capable leader. Because with the right training and support, you can and will succeed in the principal role. 

Your combination of unique perspectives and experiences, coupled with your teaching experience—creates a unique leadership lens that no one else possesses. Remember that. 

The financial reality of the principalship

While it’s the ability to make a big impact that drives most educators, it’s hard to deny that the financial aspects of the principalship represent a big opportunity for career growth.

At a high level, here’s the reality of principal compensation: According to the U.S. Bureau of Labor Statistics, the median annual salary for school principals is approximately $103,000. The lowest 10% of principals earned less than $70,000, and the highest 10% earned more than $163,000. Compare this to the national average teacher salary of $69,000 according to the National Education Association, and the financial pathway becomes clear.

Salary specifics are based on several factors, such as:

• Geographic variations: Urban districts—especially those in major metropolitan areas—tend to have higher principal salaries than suburban and rural districts.
• School-based factors: High school principals generally have the highest salaries due to increased responsibilities (larger student populations, more complex scheduling, specialized staff management, and more), followed by middle schools and then elementary schools.
• Type of school: Public school principals tend to earn more than their private school counterparts. The main reason for this is funding. Public schools depend on government funding, which means they’re more subject to more regulations and oversight, leading to additional reporting responsibilities for those principals. 
• Experience and qualifications: Principals with more years of experience or those holding advanced degrees—such as a Doctorate in Education (Ed.D.) or Ph.D., often earn higher salaries. 

Beyond base salary: the complete principal earnings package

In addition to a base salary, the principalship typically includes a list of enhanced benefits. Here are some of them you may encounter as you begin exploring these leadership roles:

• Extended contracts: Because the principalship is seen as a year-round position, they often have 15-25% more contracted days than teachers—220 to 240-day contracts versus the 180-190-day contracts for teachers.
• Healthcare: Principals often have more comprehensive healthcare options compared to teacher packages.
• Retirement contributions: Enhanced matching or contribution rates in many schools and districts.
• Professional development allowances: While these allowances can vary based on many of the factors we detail above, principals typically get some sort of professional development stipend to further their own learning. 

The career ladder: How the principalship opens additional leadership doors 

The principalship isn't just a single step up—it's a gateway to multiple career paths, each with its own set of financial opportunities. Understanding these pathways can help you envision not just your next career move, but your long-term financial trajectory in education. Here are the four most common pathways, but there’s certainly plenty of other job and career scenarios where you’ll be able to leverage your education leadership skills:

The principalship isn't just a single step up—it's a gateway to multiple career paths, each with its own set of financial opportunities. Understanding these pathways can help you envision not just your next career move, but your long-term financial trajectory in education. 

The traditional path: Most educators who become principals follow a progression that includes multiple opportunities for salary advancement, such as teacher leader to assistant principal to principal to district leadership. Each one of these steps typically represents a significant increase in compensation.

The specialized path: Some principals choose to develop specialized expertise that leads to a variety of career paths. For example, many former principals with expertise in school turnaround or change management strategy, leadership development, or specialized instructional approaches can create a business where they use their experience to train and guide other schools. Another example is to become a professional development provider, where former principals train other leaders through a specific organization or company, or work as an independent contractor. In addition, former principals are highly sought after within educational technology companies, where they can work to develop and implement school-focused products and solutions. 

The academic path: Your practical leadership experience also becomes extremely valuable in academic settings. Being a faculty member in higher education, contributing to educational policy research, and authoring books, curricula, and professional resources are just a few examples of how your leadership skills can easily transfer to academia. 

The social impact path: Many principles find their next calling in the form of mission-driven work, whether it’s leading educational nonprofit organizations, directing educational initiatives at philanthropic foundations, or working in educational policy advocacy at the either the local, state, or national level. 

Several of our New Leaders alumni have gone on to serve in leadership positions above and beyond the principalship, or have founded their own education-based businesses. Dr. Duke Bradley III is currently the Superintendent of the Newton County School System in Covington, Georgia—having previously served as a Deputy Superintendent and Chief of Schools as well as a Vice President of School Leadership & Accountability with 3DE Schools by Junior Achievement.

Aqua Stovall’s journey as a New Leaders alum has straddled both the specialized and social impact paths through her founding of SELF (Special Education Leader Fellowship), a nonprofit organization that partners with schools to significantly improve the education of children with disabilities through professional development and responsive technical assistance. She also consults with schools and other organizations as part of her business, Stovall Consulting Group. 

And then there’s Sabrina Pence, a New Leaders alum who is the Chief Executive Officer of Firstline Schools, a network of four charter schools educating pre-kindergarten through 8th-grade students in New Orleans, Louisiana. 

Remember: the journey begins with belief 

We started this piece by asking if you’ve ever wondered whether you’d make a good school principal. That wondering—the moment where you see yourself differently—is where every principal’s journey begins. 

The financial rewards of school leadership are substantial and well-documented. The career pathways are diverse and filled with opportunity. But the first and most crucial step is believing that you can make this transition—that your classroom expertise, combined with the right preparation and support, equips you to step into leadership.

Here’s the truth: every exceptional principal was once a teacher who dared to envision themselves differently. They didn't start with all the answers or perfectly developed leadership skills. They started with belief—in themselves, in what schools can be, and in their capacity to grow into effective leadership.

Your next step: the New Leaders Aspiring Principals Fellowship

If you're ready to transform both your impact and your earning potential, our National Aspiring Principals Fellowship offers a direct pathway to school leadership. This program, designed specifically for talented educators ready to expand their influence, provides aspiring principals comprehensive leadership preparation aligned with New Leaders’ proven Transformational Leadership Framework, mentorship from successful principals to guide your development, a supportive cohort of peers who are navigating the same leadership journey, direct connections to districts seeking new leaders, and more. 

We’ve trained over 3,900 education leaders who reach nearly 2 million students annually. Our Fellowship graduates demonstrate strong retention rates and better school performance outcomes than many of their peers, while also advancing their own financial futures. Learn more at https://www.fellowship.newleaders.org/.