The University of Minnesota’s Board of Regents unanimously voted on Wednesday to extend President Eric Kaler’s contract, setting the stage for his continued leadership through the end of the decade.

The agreement provides employment for Kaler until June 30, 2020 — five years past the contract’s original expiration date — and boosts his yearly salary by 2.5 percent.

That brings the president’s base pay to $625,250 each year. But that number could be bumped up over time as part of the board’s annual review.

“I think there’s no doubt it’s a large salary,” Kaler said, “but we’re in a marketplace.”

Kaler’s total compensation tops at $784,700 for the coming year, including retirement benefits.

That number is the sixth highest in the Big Ten, according to University data.

Board Chair Richard Beeson said Kaler’s boosted pay is enough to keep him at the University.

“We want this to be his last job,” Beeson said.

At the board’s monthly meeting on Wednesday, regents also approved a resolution to increase the University’s engagement with neighborhoods, the city and developers. Officials plan to be more vocal with their opinions about new expansion in the University’s area.

Athletics director Norwood Teague also told the board that the University has far less facility space for student athletes than peer institutions. By the end of the summer, he said, the department plans to begin a fundraising campaign to raise $190 million for a new athletics training complex.    

Read more about Kaler’s administration and the athletics department’s fundraising plans in Wednesday’s Daily.