Ten Network executive chairman Nick Falloon has extended his contract until August 2008 ina deal worth around $15-16 million, which almost doubles his annual pay. The extension was revealed late Friday – company announcement here – and came after several months of negotiations.

His present contract was due to end in December this year, but since the retirement of Ten CEO John McAlpine two months ago, Ten’s owners, the Asper family of Canada and the company’s board, have been anxious to make sure Falloon doesn’t depart.

Under the new deal his basic pay will rise to $2 million a year, including superannuation and adjusted annually for CPI, there’ll be a short term bonus of 75% of his basic pay and a long term bonus of $1.5 million a year paid into an employee share plan that will acquire shares in Ten.

This adds up to a basic salary over the three years of at least $6 million, short term bonuses of $4.5 million, subject to hurdles and a similar amount in shares. He will be entitled to a termination payout of a year’s basic, short term and long term incentives, worth around $5 million, plus any shares acquired.

Mr Falloon has been executive chairman of Ten since being hired in late 2001, after he was flicked as CEO of PBL in February of that year by James Packer.

He was paid $2.717 million last year with a basic payment of just over $1.4 million and a cash bonus of $750,000. Under the new arrangement, his annual payment will be up around $5 million a year, including the shares.

Falloon was also given options over 7.5 million shares back in 2001 and had managed to hang on to half of those according to an ASX notice late last year. His 3.75 million shares are worth around $14 million at Friday’s closing price of $3.71 a share.