MSU ups retention incentives in new Nietzel contract

The Missouri State University Board of Governors has dumped President Michael Nietzel's current contract three years early and replaced it with a new contract that increases his retention incentives by $200,000.

The board on Friday said it has awarded Nietzel a four-year contract with the school, running July 1 through June 30, 2013. The current contract - which started when Nietzel was hired in 2005 and was extended twice - had three years remaining, according to a MSU news release.

Nietzel's salary will stay at $267,372, as no MSU employees will receive increases for 2009-10. He will continue to receive various benefits, including a housing allowance, use of a car and a country club membership.

The most significant change to his contract is the retention incentive, according to the release. The original contract promised Nietzel $50,000 if he stayed in the position until the end of the 2010 fiscal year and another $50,000 in 2011. The new contracts adds a $75,000 incentive if he stays through 2012 and a $125,000 incentive if he stays through 2013.

"The board's primary job is to hire and retain the best president possible for the university," board chair Mike Duggan said in the release. "That is exactly what we are attempting to do with this contract. The retention incentives are based on performance and designed to keep Dr. Nietzel as president not for two years or three years, but for the full four years of the contract."