The way in which faculty reward is linked to faculty evaluation is examined. It is contended that faculty reputations continue to be important to instructional images and professional advancement of the individual and are dominant in many systems of faculty evaluation. The contradiction when faculty are evaluated on the basis of performance and then rewarded on the basis of reputation is noted. The determinants of faculty salaries appear to be a complex mixture of status or rank, preparation or background, research or scholarly achievement, and professional reputation. Additional trends and factors that must be considered in planning for effective reward systems include inflation, the changing missions of many institutions, and affirmative action and other efforts to reduce discriminatory practices in higher education. One weakness of current faculty development programs is their lack of firm linkage to institutional incentives and rewards. Among the possible approaches that might be effective for faculty development and the improvement of instruction would be the establishment of pay scales that are truly meritorious. (SW)