Nick Saban was given a three-year extension during a vote of Alabama's Board of Trustees on Tuesday morning.
Saban will receive a $4 million signing bonus and make $6.725 million in salary this year. He gets another $400,000 bonus for completing the season, bringing his total compensation for the year to $11.125 million. He has completion bonuses in each year of the contract, culminating in a $3.6 million payout after the 2021 season before going back down to $400,000 per year in subsequent seasons.
"Terry [Saban's wife] and I are pleased and happy to agree to the contract extension the University of Alabama has offered us, ensuring our time here in Tuscaloosa will continue for many more years," Saban said. "This has become our home, and we are looking forward to finishing our career at Alabama. I want to thank President [Stuart] Bell, [athletic director] Greg Byrne, our athletic administration, football staff and the entire university community for all of their support, which has been instrumental in the success of our organization.
"We are extremely proud of the young men who have represented the Crimson Tide on the football field, and more importantly, what they have been able to accomplish in their lives off the field because of their involvement in our program."
Saban is the second-highest-paid coach in annual compensation in college football behind Michigan's Jim Harbaugh, who had his salary increased to $9 million per year last October.
According to USA Today's database, Ohio State's Urban Meyer is third among college football coaches in compensation at roughly $6 million per year. Oklahoma's Bob Stoops and Florida State's Jimbo Fisher round out the top five.
Saban has been with Alabama since 2007, winning four national championships, most recently in 2015. The Crimson Tide lost to Clemson in a title game rematch this season.
In addition to Saban's extension, the board signed off on contracts for all of Alabama's assistant coaches.
New offensive coordinator Brian Daboll, who was most recently tight ends coach with the New England Patriots, will make $1.2 million annually through 2020.
Defensive coordinator Jeremy Pruitt will make $1.3 million this season and be given a raise of $100,000 in each of the next two seasons.
Co-defensive coordinator/outside linebackers coach Tosh Lupoi was given a hefty raise from $550,000 to $950,000.
Strength and conditioning coach Scott Cochran was extended one year and was given a $10,000 raise to $535,000.
Byrne, who left his post as Arizona's athletic director for the same position at Alabama, also had his contract approved for five years beginning at $900,000 with an increase of $25,000 per year.