The Commission has expressed concerns about the preparation of University of California and California State University executive compensation and faculty salary studies. In response to the Commission's direction, a Compensation Study Advisory Committee was convened to explore the utility of salary and compensation studies and suggest improvements. This report summarizes the work of the advisory committee and updates the Commission on plans for a 2007 faculty salary report. The contents of this report are arranged as follows: (1) Background; (2) January 2007 Compensation Study Advisory; (3) Committee Meeting; and (4) Next Steps.