The school says former general counsel John Wolf will receive a lump sum payout equal to 18 months of his $280,775 annual salary.
Wolf resigned Thursday amid criticism of his decision to approve a suspension of men's basketball coach Mike Rice in December.
Rice was fired last week after a video surfaced that showed him shoving and kicking players and using gay slurs. He's in line to receive just over $1 million under his contract.
Athletic director Tim Pernetti also resigned and will receive $1.2 million in salary as part of a settlement agreement.
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