I am an alum. Not embarrassed at all.
For decades, yes decades, other football programs (pro and college) would see a good Stanford coach have great confidence that they could just pay something close to the prevailing wage and hire the person away. That reality then led many recruits to wonder if going to Stanford was best, especially if they liked the head coach. So oddly a big contract probably is a good sign for top tier recruits.
In terms of comps, does anyone really believe coaching at Oklahoma, Texas, Florida or tOSU is comparable to the challenges of coaching football at Stanford. The university is a dream school for academically inclined types, but there are a lot of football players that are more motivated by bling and glamour. The last 50 years suggests it has been a touch easier to get to 7 or more wins per year at a football factory than at places like Stanford, Northwestern, Vanderbilt, Duke. etc.
FWIW - As we don't have access to his contract imagine for a moment there was/is a performance metric. Should Coach Shaw win a Rose Bowl his compensation for the next several years will be in line with the other coaches have won one or more BCS bowls. Most of the coaches that have won one or more BCS/NY6 bowls in the last several years are all now making $5 million or more per year which is right in line with Coach Shaw's salary.
College Football Coach Salaries