Factors Affecting Faculty Compensation.

Internal Factors Determining Faculty Compensation.

Characteristics of an Ideal Faculty Compensation System.

Compensation: A Historical Perspective.

Faculty Compensation Systems Used in Higher Education.

Contract Salary System or Merit Pay.

Single Salary Schedule.

Nontraditional Faculty Compensation Systems.

Intellectual Rationale for Different Faculty Compensation Systems.

Arguments Supporting a Faculty Merit Compensation System.

Arguments Supporting a Single Salary System.

Operational Advantages and Disadvantages of the Faculty Compensation Systems.

Operational Advantages of Merit Compensation Systems.

Operational Advantages of Single Salary Systems.

Operational Disadvantages of Single Salary Systems.

Operational Advantages of Nontraditional Systems.

Designing an Effective Faculty Compensation System.

Steps to Follow.

One Institution's Redesign of Its Faculty Compensation System.

Constructing an Effective Faculty Merit Compensation System.

Constructing a Single Salary System.

Conclusions and Recommendations.

Appendix A: Illustrative Criteria for Faculty Merit Awards.

Appendix B: Evaluation Tool for Satisfactory Faculty Standards.