When faculty have tenure, are their salaries protected! If so, what po
rtion and in what circumstances! In the era of managed care and shrink
ing resources, these questions are becoming particularly important at
medical schools because salaries there tend to be higher than salaries
elsewhere in academia and because those salaries are more commonly de
pendent on outside funding. A fundamental question that will increasin
gly be asked is whether reductions in the salaries of tenured faculty
are legally permissible. To a large extent, the answer is a matter of
interpreting what each medical school has contractually obligated itse
lf to do regarding tenure; generally, schools' tenure rules support th
e legal right to impose a salary reduction. But, in fact, the historic
al record shows few instances of such reductions. Thus there are few j
udicial decisions regarding tenure that can help predict how particula
r tenure contracts are likely to be interpreted. In this situation, fa
culty and institutions can be expected to interpret the historical abs
ence of salary reductions for tenured faculty in contrasting ways, Gen
erally, if the written policies are clear, past practices will Flay li
ttle or no legal role. If the policies are unclear, institutions must
show that their practices were primarily related to the pre 1994 condi
tions of mandatory retirement and have little relevance to present cir
cumstances. Although the main historical purpose of tenure was the pro
tection of academic freedom, can the protection of salary be encompass
ed within this purpose? Usually not; the current situation is almost a
lways one in which cost concerns, not political ones, motivate medical
schools to reduce the salaries of faculty with reduced funding or pra
ctice incomes, The author concludes that although there are few preced
ents and many unexplored issues, it is clear that tenure was not inten
ded to protect full salaries at most medical schools. His view is that
in appropriate circum stances, reductions in the salaries of tenured
faculty are legally achievable.