Rutgers AD Pat Hobbs eligible for $50K bonuses, rolling extensions

PISCATAWAY -- Rutgers new athletics director Pat Hobbs is eligible for up to $50,000 in bonuses that could push his annual salary over $600,000, according to a review of the memorandum of understanding that he signed as an official contract awaits execution.

The agreement is for five years with a base of $560,000, but it states that on the last day of the third contract year and on the last day of every subsequent absent notice of termination without cause or notice of non-renewal the contract will automatically extend for one additional year, as first reported by Gannett New Jersey.

Thus, Hobbs, who was hired Sunday shortly after Julie Hermann's firing, will never work with fewer than two years remaining on the contract.

Rolling extensions are new territory for Rutgers, which has had five athletic directors since 2008 and four under president Robert Barchi.

Bob Mulcahy (1998-2008), Tim Pernetti (2009-13) and Hermann (2013-15) held the position full-time. Carl Kirschner twice served as interim athletics director, but was empowered enough the last time to hire men's basketball coach Eddie Jordan.

The contractual bonuses are academic and athletic performance goals are to be determined by Barchi and discussed with Hobbs.

The average base salary in the Big Ten for athletic directors at the other 12 public school schools is $577,768, according to a Gannett New Jersey contract review, though that number grows much higher when retention bonuses, deferred compensation packages and money from donor gifts are added to the equation.

Rutgers did not give Hobbs any such perks, according to his agreement.

At least three Big Ten athletic directors (Nebraska's Shawn Eichorst, Wisconsin's Barry Alvarez and Ohio State's Gene Smith) command seven-figure salaries.

In 2013, the average total pay of the then-11 athletic directors at Big Ten public schools was $618,209, according to a USA Today database.

Hobbs, the former Dean Emeritus at Seton Hall Law School, also is entitled to a vehicle allowance of no less than $12,000 per year and a club membership suitable for the development duties of the position.

If Hobbs is fired for cause, Rutgers is not liable for any payments or benefits after the date of termination. If Hobbsis fired without cause, Rutgers is required to pay the guaranteed base salary for the remainder of the contract and any extension or until he finds other employment should that come first.

Termination for cause and suspension offenses include standard-issue language in Rutgers contract.

Hobbs is required to fully cooperate with any compliance effort or investigation and may be suspended with or without pay pending the outcome of any compliance investigation.

The two sides agreed to make "every reasonable effort" to reach a formal contract within 60 days of Hobbs' start date.

The offer letter from Barchi was contingent upon the approval of the Board of Governors' Executive Committee and the Committee on Intercollegiate Athletics and the results of a background check satisfactory to the university.

Board chair Greg Brown and vice chair Ken Schmidt are helping Hobbs with the search for a new football coach.

Staff Writer Ryan Dunleavy: rdunleavy@gannettnj.com