"Mike Hamilton is one of the young, shining stars in intercollegiate athletics," Shumaker said. "His commitment to the highest performance standards in the classroom and in the competitive arenas will serve our student athletes well."
Hamilton will succeed Doug Dickey, who is retiring July 1 after serving as UT's athletic director since 1985. Dickey's base salary and expense account totals $252,900, and he is eligible for a bonus of up to $55,000.
"I appreciate Dr. Shumakers confidence in selecting me to be the next athletics director and the confidence expressed by him through this contract," Hamilton said. "We have already begun work to build on UTs national tradition of excellence, and I look forward to many years of success on and off the fields of competition."
Under the incentive bonus, Hamilton would receive $1,000, up to a maximum of $10,000, for each one-tenth of one percent the overall male student athlete grade point average increases above the previous year. There is a similar provision for change in grade point of African-American athletes.
For each percentage increase in the athletes' graduation rate, Hamilton will receive $1,000. Each male athlete who graduates with a grade point average of 3.0 or above will yield him $500.
In addition, the team performance provision would pay him a bonus based on conference and NCAA performances.
The 17-part contract places with Hamilton responsibility for the conduct of the men's program, its athletes and staff. He will report to Shumaker.
The agreement calls for Hamilton to provide a "complete and informative assessment of the men's athletic program at UT, Knoxville, in terms of its success and educational functions" to the university administration, faculty students, alumni and the community.
Shumaker must approve in advance any outside compensation opportunities from apparel or equipment companies or from other sources. Hamilton can serve on corporate boards and do speeches and non-commercial promotions if they do not interfere with his university duties, the contract says.
After the first year, Hamilton will receive an adjustment in his base salary that will be determined by the inflationary increase of the Consumer Price Index.
The annual sports team and academic bonuses can total up to $62,500 each. Shumaker will set the amount of the bonuses after a meeting with Hamilton that will occur on or before May 30 each year.