AUSTIN (KXAN) — Just a week after being named the 30th head coach in Texas football history, Tom Herman’s contract was approved by the University of Texas System Board of Regents.
“We’re delighted with that action,” Texas athletic director Mike Perrin said.
Herman has a five-year contract that starts at $5,250,000, with a $250,000 yearly escalator, to bring his base salary to $6,250,000 in the fifth and final year of his contract. At Houston, Herman was making $3,000,000.
“We are very pleased that the University of Texas System Board of Regents just approved, by a vote, the contract with coach Herman that President Fenves and I negotiated last weekend,” Perrin said.
The contract is similar to former head coach Charlie Strong’s. Both started out with a five-year contract, but Strong’s starting salary was $5 million with only a $100,000 yearly escalator.
One of the biggest differences for Herman’s contract is the buyout clause. If Herman were to leave Texas before the end of deal, he will owe $3 million for each year left on the contract. He will also have to pay for the balance of the assistant coaches’ contracts that are not retained by the Longhorns’ new coach.
If Texas were to fire Herman without cause, he will be owed $5 million for each year left on the deal, minus whatever Herman makes if he accepts a new coaching position after his termination.
Herman has already hired four assistant coaches and two support staffers. This week, they were already out recruiting, including a stop on Friday at the Lake Travis-Westlake playoff game.
“Coach Herman, he hit the ground running this week,” Perrin said. “[We’re] delighted to be able to have this very important procedural step behind us.”
There are also performance-based incentives for Herman, up to $575,000 for postseason bowl appearances. Herman can make up to another $150,000 if he’s named National Coach of the Year.