The problem of pay compression between academic ranks at public universities is investigated using salary information from a national faculty salary survey conducted by the National Association of State Universities and Land-Grant Colleges. A pay compression measurement methodology is presented. Special attention is given to compression in “high-demand” disciplines, including those found in business schools. Over the decade 1979/80 to 1989/90, pay compression has worsened in certain disciplines and has been relieved in others. Implications and consequences are discussed.