What was your reaction when it was announced last week that University of Wisconsin athletic director Barry Alvarez was getting a $150,000 raise, boosting his salary to $750,000 for 2008-09?

"Good for you, big guy?"

"Boy, that sure is a lot of coin?"

"What the heck?"

"Why I oughta …?"

Here's mine: UW chancellor John Wiley is the one retiring, so why is Alvarez the one getting the going-away present?

Wiley, as is his wont, went before the UW Board of Regents and lobbied for the 25 percent raise for Alvarez, citing "long-term performance and the market," according to a board member.

Before we go any further, you need to know Alvarez has not had a pay increase since the 2005-06 school year — he's been sitting on $600,000 ever since he resigned as Badgers football coach and became full-time AD — and that $250,000 of his new salary comes from the UW Foundation, not from taxpayers.

In addition, Alvarez was paid only one salary during the two years he held the dual role of football coach and AD, that being his $1.4 million coaching contract.

During the three years Alvarez has been in charge, UW Athletics has grown financially (a budget reserve of $33.59 million), stayed on task academically (its NCAA academic performance rating remains above the national average), kept its nose clean (no major NCAA violations) and generally excelled with its 23 sports (six programs have produced eight national titles).

That the UW Athletic Department is planning another series of capital projects — a practice and competition facility for men's and women's hockey, and new headquarters for academics, sports medicine and strength training will cost around $100 million — is another sign that life is pretty good at 1440 Monroe St.

Alvarez's raise itself exceeds the average annual salary for a full professor at UW in 2006-07 ($103,543).

The total salary Alvarez will receive starting July 1 is more than three times what Pat Richter made in his final year as UW athletic director just five years ago ($237,360).

"I think Barry is worth absolutely every penny of what he's getting," Wiley said.

The outgoing chancellor — former Cornell provost Biddy Martin takes over in September — spoke Friday prior to the final meeting of the UW Athletic Board for the 2007-08 school year.

Wiley said Alvarez's ability to choose "really great coaches" and "keep the morale in the department up and keep things running smoothly" is "worth a lot to us."

On a day it was noted there's a 99 percent renewal rate for UW football season tickets for next season, Wiley pointed out that a 1 percent decline in attendance in one of the three revenue sports — football, men's basketball and men's hockey — translates to a $250,000 hit for UW Athletics.

The change in chancellors has prompted many to point out the salaries of UW football coach Bret Bielema ($1.3 million), men's basketball coach Bo Ryan ($1.175 million) and Alvarez far exceed those of Wiley ($341,495) and Martin ($437,000).

"I believe that chancellor and presidents' salaries are ridiculous, just ridiculous, and that they're not determined by any kind of competitive process," Wiley said, readily acknowledging that he's overpaid based in large part on what consulting firms tell search committees.

"If I tried to hire ADs at a salary below that of the chancellor or the president, I wouldn't get an AD or I wouldn't get one who could keep us in the black and keep us winning."

Alvarez's revised compensation agreement will keep paying off long after Wiley is gone. The amendment calls for Alvarez to get a $25,000 raise every year through the duration of the deal — a tidy, guaranteed cost of living bump — that runs through 2013.

Not only does the arrangement undercut the new chancellor — Alvarez was granted a performance review before Martin was hired — it comes to life at a time when UW fans are donating less because of the tough economic times.

Throughout their time together, Wiley has accommodated Alvarez in ways large and small, gestures that have entrenched Alvarez as the most powerful force at UW.

For that, here's hoping Alvarez went all out on Wiley's going-away gift.