This article presents the annual report on the economic status of the profession. Although the results of this year's survey of full-time faculty compensation are marginally better than they have been the last two years, 2011-12 represents the continuation of a historic low period for faculty salaries. The overall average salary for full-time faculty members rose 1.8 percent from 2010-11, falling well short of the increase in the cost of living during the year. At 2.9 percent, the average salary increase for faculty members who remained employed at the same institution barely kept pace with inflation. And as has been the case for many years, salaries in the private sector generally rose faster than those at public colleges and universities. Despite the stagnation documented in this annual report, the myth that faculty salaries are driving tuition prices upward persists. This year's analysis fully debunks that myth with hard evidence. This report also takes another look at the compensation of college and university presidents. (Contains 4 figures, 19 tables, and 221 notes.)