Financial summary of Dan Guerrero’s contract extension

On Thursday, UCLA officially announced that it had extended athletic director Dan Guerrero’s contract for six years and nine months. Here is a summary of the main financial terms from the new agreement, which starts retroactively on April 1 and ends on Dec. 31, 2019.

— Guerrero now earns an annual base salary of $734,774 with an annual 5 percent increase. According to USA Today, he was already the highest-paid athletic director at a Pac-12 public school with $715,211 in guaranteed pay. The higher cost of living in Los Angeles likely factors into the difference.

— Guerrero is owed a $750,000 retention bonus under his previous contract, to be paid in full by May 1, and will earn another $734,000 should be remain athletic director through March 31, 2018. None of it will vest if Guerrero is fired before that point, unless he is terminated without cause. In the event of death or disability, $146,800 for each year or pro-rated month of service will go to his heirs/estate.

— Guerrero can earn up to $105,000 per year in supplemental compensation, up from the $75,000 bonus potential of his 2008-2013 contract.

a) Academic achievement (max $30,000): “Reasonable progress” can net the AD a maximum of a $20,000 bonus, while “unusual progress” can add up to another $10,000. This will be determined by APR or other measures at the sole discretion of the chancellor.

b) Athletic achievement (max $30,000): If UCLA ranks in the top 10 percent of Director’s Cup rankings, Guerrero will earn a $15,000 bonus. If the Bruins land in the top 10, he will earn another $15,000. In the award’s 19 years of existence, UCLA has missed the top 10 just twice: 2008-09 and 2010-11. The school is 12th in the most recent standings, which have not factored in men’s or women’s basketball.

c) Goal alignment (max $20,000): Guerrero can earn $10,000 for progress in aligning the goals of the athletic department with that of the campus, which covers areas such as budget, integration between athletic program and undergraduate student life activities, and cooperation between athletic and campus development programs. This is to be determined at sole discretion of the chancellor. “Unusual progress,” which must be considered over at least the preceding two fiscal year periods, can add another $10,000.

d) Other discretionary bonus (max $25,000): At the chancellor’s sole discretion, Guerrero can earn up to $25,000 if he has taken “appropriate action” in such areas as academic and athletic balance, NCAA and Title IX compliance, the behavior of student-athletes and financial stability of the department.

— As he was under his previous contract, Guerrero is eligible for an annual physical exam that can cost up to $3,500. Participation in the exam is voluntary, and the results shall not serve as a condition of employment. He is also eligible for University health and welfare benefits. Perks that have existed since his initial hiring in 2002 such as home loan and courtesy cars will continue.