The university says Graham Spanier's salary in 2011 was $700,000, plus $83,000 in taxable benefits.
The severance total will be paid over five years.
Spanier said he wasn't aware the school had made his earnings public and has declined further comment.
Spanier was charged this year in the alleged cover-up of the Sandusky scandal and remains a tenured faculty member on leave.
He is seeking a delay of his December 13th preliminary hearing on the charges and is also asking for their dismissal.