It's not hard to understand why college and university professors might worry about trends in faculty compensation. It may be more difficult, however, to see why those outside higher education should share this concern. But they should. In 2005-06, average faculty salaries increased by less than the inflation rate for the second consecutive year, making faculty positions less appealing for the next generation of scholars. This year's survey of trends in faculty compensation aims to clarify when colleges and universities are well positioned to attract highly capable faculty and when they need to try harder. The report first examines the compensation of full-time faculty across different types of institutions, focusing on disparities in faculty compensation at public and private institutions. It then looks at salary trends in other professions requiring advanced degrees and among college and university presidents. Because benefits now account for about 30 percent of full-time faculty compensation, this year's report compares the cost of benefits available to faculty with that of benefits received by employees in private industry. Given the decreasing proportion of full-time faculty positions in higher education, the report concludes by analyzing pay for part-time faculty. (Contains 4 tables, 6 figures, and 18 notes.)