Compensation for faculty have improved much since the University of Bologna had students pay faculty directly for their services when the university was established in 1088 A.D. The higher education system in the United States is a prototype of a structure in which market-driven competition exists for both education and research. The chapter provides a specific methodology and focuses on return on investment (ROI) for a public higher-education institution that does not have a formula-funding mechanism in its state. The situation for public higher-education institutions in particular is the amount of funding from state legislatures is never certain, and public higher-education administrators are accountable to state agencies for monies that are spent and generated by their faculty. Higher-education institutions that are public and nonprofit in most cases have additional different revenue sources, different missions, and different agendas than their for-profit counterparts.