Penn State shows O'Brien can earn up to $200,000 in incentives

As part of its promise to be more transparent, Penn State has released details of the five-year contract signed by new head football coach Bill O'Brien that includes information about salary, performance incentives, extensions, and termination.

The contract went into effect Jan. 6, the day O'Brien was hired, and totals $2.3 million in base earnings for the first year.

Regarding incentives, O'Brien will receive a 5 percent bonus ($47,500 in the first year of his contract) if the Nittany Lions win the Legends Division of the Big Ten, and 8 percent ($76,000) if the Lions take the conference championship game. A bowl appearance means an extra 11 percent ($104,500).

The contract states the added compensation shall not exceed $200,000 per season.

The contract runs through Jan. 6, 2017. About one year prior to that date, the university may review the coach's performance and decide to extend the pact for one, two, or three years.

Details of the contract, and those of other Penn State officials, were released on the web site openness.psu.edu, created in the wake of a scandal that raged after the indictment of former assistant coach Jerry Sandusky on child sexual abuse charges.

O'Brien will earn a base salary of $950,000 the first year, and an automatic 5 percent raise beginning July 1, 2013 and continuing every year on that date for the next three years.

O'Brien also will receive $1 million for radio, television, and personal appearances, and $350,000 from the university's shoe and apparel contract with Nike.

O'Brien, the former offensive coordinator of the New England Patriots, succeeded Joe Paterno, whose base salary started at just over $1 million per year.

Contact staff writer Joe Juliano at 215-854-4494, jjuliano@phillynews.com or @joejulesinq on Twitter.