The intent of this dissertation was to determine the most common compensation practices higher education institutions provided faculty for developing and delivering online courses. Many higher education institutions provided compensation as motivational tools to elicit faculty participation in new online learning initiatives; however, limited research was available on equitable compensation for these services. The population consisted of 263 small, medium, and large baccalaureate and masters level private and state-funded not-for-profit United States higher education institutions. This population was selected using the maximum number of institutions identified by the Carnegie Classification system that met these criteria. Data for this study were collected using a survey that contained 16 closed-ended questions and five open-ended questions. The data collected included institution demographics and current compensation practices each institution used to compensate faculty for developing and delivering online courses. Frequency analyses were conducted on the data to determine which compensation practices and financial ranges were selected most often. Fifty-eight participants (36%) were from institutions serving between 3,000-9,999 students. Eighty-three participants (51.6%) offered between zero and four online programs and 145 participants (88.4%) provided instructional design services to faculty who developed and delivered online courses. The results of this study established that the average online course cap limit of was 25.1. The results of this study also established that 96 participants (59.6%) provided financial compensation in the range of $1,001-$2,500 for developing online courses making it the most common compensation practice provided for online course development. Seventy-seven (47.8%) of the participating institutions provided financial compensation in the range of $1,001-$2,500 for delivering online courses making it the most common compensation practice provided for online course delivery. In addition, this study determined on average small and medium institutions most frequently provided financial compensation in the range of $1,001-$2,500 and large institutions most frequently provided financial compensation in the range of $2,501-$4,000 for developing online courses. Finally, this study determined on average small and medium institutions most frequently provided financial compensation in the range of $1,001-$2,500 and large institutions most frequently provided financial compensation in the range of $2,501-$4,000 for delivering online courses. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]