The effort to compensate Barry Alvarez for doing two high-profile jobs concluded Tuesday when the University of Wisconsin Board of Regents agreed to pay him a one-month salary increase of $118,500.
In addition to serving as UW athletic director, Alvarez will coach the Badgers football team in the Rose Bowl against Stanford on Jan. 1 in Pasadena, Calif. He took over those duties in the wake of Bret Bielema's decision last week to leave UW to become the coach at Arkansas.
For the month of December, Alvarez will receive 90 percent of Bielema's monthly salary ($195,000) plus 10 percent of his current salary as AD ($8,500) for a total of $203,500. That represents a one-time monthly salary increase of $118,500.
Bielema was due $2.7 million for this season, while Alvarez is paid $1 million. Funds for the compensation will come from the $1 million buyout stipulated in Bielema's contract, to be paid to UW by Arkansas.
Alvarez, 65, a member of the College Football Hall of Fame, coached the Badgers to 118 wins and three Rose Bowl victories between 1990 and 2005. He spent two years in the dual role of coach and AD (2004 and '05) before turning over the football program to Bielema in 2006.
"We weighed the factors involved, including the unique circumstances that developed less than a month before the game, the challenges of the job, the marketplace and (Alvarez's) strength as a coach, and concluded that this is a reasonable arrangement," Brent Smith, president of the UW Board of Regents, said in a statement.
Should the Badgers win the Rose Bowl — Alvarez would become just the second Big Ten coach with four victories in the game, joining Ohio State's Woody Hayes — he will receive the same $50,000 bonus that would have gone to Bielema through the UW Athletic Department's exceptional achievement award policy.
Alvarez told reporters after Friday's UW Athletic Board meeting he would be receiving one-twelfth of Bielema's full salary to coach in the Rose Bowl, which explains the original report that he would be paid $225,000.
Asked why Alvarez isn't simply taking the higher percentage of the two salaries, UW vice chancellor for community relations Vince Sweeney said the deal was a "recognition of shared responsibility" with the two roles.
The news release acknowledged the extra work of UW deputy athletic director Sean Frazier, but a school official said no one else would be receiving additional compensation.
"Coach Alvarez has a one-of-a-kind skill set that the university needs to be successful — both in the Rose Bowl and in attracting the best coaching candidates in the search for someone to lead the Badgers football program going forward," UW interim chancellor David Ward said. "We believe that this package is fair and proportional."