<p>As others note, it depends on type of school, private or public, and discipline. Doesn’t matter much how much the school values the discipline. As a general rule, disciplines where professors can get hired for a lot of money in industry tend to be paid a lot (e.g. finance, medicine, law) since the university is competing with those other employment opportunities to lure faculty in and also professional schools can actually be direct revenue generators for the university. Those in disciplines where you can’t make much money in general, such as art, music, history, universities do not pay so well since they aren’t competing with anyone (and there are far more people wanting teaching jobs than there are jobs, period).</p>
<p>In business schools (where I teach), at research universities at least, one starts around $125 and it goes up from there. Most tenured faculty at the top 20 and Ivies earn at least 200, and easily into the 400k range, especially if they are doing executive training (for example, I believe Wharton now pays $9,000 a day to its professors to each a group of executives). </p>
<p>At research universities you teach about 3-4 courses a year but it’s an extremely full time job and one does’t take summers off. This is because you are a researcher first and foremost. And along with research there is also course prepping, committee work, cases to write, supervising graduate students, meeting students, writing letters of rec, curriculum development, designing new courses, serving on boards, and on and on and on (what you see in the classroom as a student is just a tiny part of the job). Email alone could take a full day a week if you let it. </p>
<p>At a less research intensive school, you tend to earn less, and teach more but the expectations for research are lower. But teaching six-eight courses a year, along with the prep, curriculum work, student face time, and well that teaching load would consume most of your time. Little time for anything else.</p>
<p>As an aside, research funding doesn’t cover faculty salaries (at least not in my discipline), but it pays for graduate students, one’s lab, one’s expenses as it relates to doing research and funds back as tax to the university. It also signals the quality of the researcher. But the reason its so valued is you can’t do great research without great funding and the schools with the highest reputation are research schools. And great research institutions attract great researchers and the cycle continues. It’s what they value. Don’t completely knock it: without research there is no content to teach. Though I want my kids going to schools where the research faculty actually teach too (as it has been at every institution I’ve taught at).</p>