John Engler, the interim president of Michigan State University, will earn an annual salary of $510,399 – but he will give it back to university-related charities, according to his contract, which was released Wednesday.

His salary is $239,601 less than the $750,000 former President Lou Anna Simon made before her resignation in January.

A statement issued by the MSU Board of Trustees said: “This week, John Engler and the Board of Trustees finalized a contract for his service as interim president of Michigan State University. His salary was set at a rate $1 lower than the next-lowest Big Ten Conference university president. Mr. Engler has chosen to donate his compensation back to the university.”

Engler’s contract began Feb. 5, but he did not sign it until this week and it was not clear how long it will last.

A clause in the six-page contract under his compensation states that his salary will be reviewed annually by the Board of Trustees, which will have the option to grant him a raise.

MSU will be looking for a permanent president following Simon’s resignation in the wake of the Larry Nassar scandal.

In the contract, Engler waived health care coverage and participation in retirement programs.

But the board will provide Engler with a car and a driver for travel in his official duties.

The university will reinburse him for expenses that are “necessary and appropriate,” including memberships in service and professional organizations and official entertainment, according to the contract. He and his immediate family also will get complimentary tickets to university academic, athletic and cultural events.

Engler will use the Cowles House, MSU’s presidential residence, for his official duties.

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