Indiana Governor Mitch Daniels, in his final month as governor, will become president of Purdue University in January.

(West Lafayette, Ind.) – When Indiana Governor Mitch Daniels takes over as Purdue University’s 12^th president in January, he will quadruple his salary.

The Purdue University Board of Trustees approved Daniels’ contract on Saturday.

Daniels will be paid $420,000 annually, plus incentives that could increase his pay as high as $546,000. In 2011, Daniels made $108,000 as governor. 

"Gov. Daniels proposed a salary plan that offers incentives for reaching Purdue goals that are important to all of us - students, families, taxpayers, faculty and staff," said Keith Krach, chair of the Board of Trustees. "The board enthusiastically embraced the concept and it underlines our commitment to growing the value of a Purdue degree. This contract goes further on performance goals than any we know about."

The governor will actually make less than Purdue’s previous president, Fance Cordova. She is paid nearly $476,000 plus deferred compensation for a $555,000 total salary. Daniels' potential salary would rank 10th in the Big Ten, according to April 2012 data.

In a Purdue statement, Daniels said his contract embraces accountability.

"This contract is designed to underscore the university's commitments by aligning my priorities as its employee with the objectives of student success, student affordability, and institutional excellence and reputation," the governor said.

Daniels was the commencement speaker at the winter commencement for graduates at Indiana University in Bloomington on Saturday.