This publication is a brief digest of a longer monograph on compensation policies for higher education faculty and the impact of these policies on the professoriate and the higher education enterprise. An early section describes the monograph's treatment of the current financial turbulence in higher education that has caused many institutions to cut budgets and led to lowered expectations and demands of faculty on their institutions. Monograph analysis of compensation structure covers linking compensation to institutional mission, collective bargaining agreements, retirement issues and early retirement programs and incentives. A description of estimates regarding the academic labor force of the future notes that impending retirements are likely to reduce the numbers of professors at senior levels by as much as 40 percent, that replacements may not be in the pipeline, and that external market issues and internal market issues are important determinants of compensation policy. The monograph looks closely at how compensation is used to motivate, recruit, and retain faculty, how supplementary compensation is used, and other related issues. A summary of the monograph's look at fair compensation covers the importance of equity, federal and state legislation affecting compensation, and salary discrimination issues. A final section describes how the monograph treats developing effective compensation systems. (JB)