Tenured and probationary faculty at a midwestern state university were asked to complete a questionnaire containing 21 merit-pay-related questions and five biographic-status questions. The typical faculty member preferred: (1) that 40% of their annual salary increment be allocated to merit; (2) that this merit component be controlled by their department according to departmental criteria; (3) that none of the merit increment be controlled at the college or the university level; and (4) that the merit portion be allocated more to teaching and research than to service. Fewer than 10% preferred a 100% merit system. Typical faculty members did not believe that a 100% merit system would encourage or stimulate them to improve their research, teaching or service performances, or to enhance either a sense of fairness about salary decisions or cooperation among colleagues. If annual salary increments were approximately 4% (rather than 8% or 13%), most faculty favored a 20% merit component, rather than the 40% merit component associated with higher annual increases in salary. Nine references. (Author)