Michigan State University and the school's athletics director, Mark Hollis, have agreed to a new contract that will increase the salary of the incumbent AD in East Lansing through 2016, while giving Hollis a significant pay bump.
The contract, terms of which were announced Monday via press release, has been converted from a fixed term contract that would have expired on Dec. 31, 2016, to a rolling five-year contract that will renew every year, on July 1.
Hollis' base salary is set to increase by 205,000 annually, from 395,000 to 600,000, as of Oct. 1, 2012.
He also will have the opportunity to earn up to 50,000 (down from 62,000 last season) in annual performance bonuses.
In addition to his base salary and potential performance bonus, Hollis will also receive an "annual longevity payment" of 100,000 to be paid each July.
The longevity payments, however, are contingent upon "Hollis continuous service as AD for the previous 12 months," according to the release. This is the only new payment in the deal.
Continuity in coaching staffs has been a critical ingredient for the sustained success of many of our sports programs," Hollis said in a school-issued statement. "Likewise, stability in the long-term strategic development for the department is equally vital for achieving that same level of success.
"I firmly believe our best days are ahead."
All together, the MSU AD could be making 293,000 more than he did last season.
Michigan State kicks off their 2012 football season against Boise State on Friday, Aug. 31.