After leading the Cowboys to a 23-12 record and back to the NCAA Tournament in his debut season at OSU, Ford was awarded a four-year extension and a bump in pay to $1.8 million for this year.
At 39, Ford is the highest paid coach in the country under the age of 40.
The move gives Ford a 10-year deal that now runs through June 2019 and equates to a first-year raise of $397,600, after automatic annual increases totaling $100,000 kicked in July 1.
As part of the new contract, Ford's salary is due to increase annually, topping out at $2.8 million over the final four years of the contract. His compensation is split between salary and personal services.
On Friday, the Oklahoma A&M Board of Regents approved the deal which is designed at locking up Ford long-term and making it expensive for any school interested in hiring him away.
Along with a boost in pay, Ford's contract also includes a boost in the buyout -- from $1 million previously, to $3 million -- should he leave for another job before the conclusion of the deal.
"Coach Ford did a tremendous job rejuvenating our basketball program in his first season," said OSU athletic director Mike Holder.
"This contract rewards him for the job he has done and demonstrates OSU's commitment to him. We consider Travis a rising star in the coaching profession."
Under Ford, the Cowboys made their first NCAA appearance since 2005, advancing to the second round. OSU led the Big 12 in scoring, averaging nearly 79 points per game, and connected on a Big 12-record 327 3-pointers.
The new deal makes Ford the third-highest paid coach in the Big 12 puts him near the highest tier of coaches in the country. Kansas' Bill Self leads the way at $3 million, while Texas' Rick Barnes makes $2 million. Oklahoma's Jeff Capel, who also received a new contract this summer, is at $1.5 million.
OSU football coach Mike Gundy earlier this year agreed to a seven-year deal worth $15.7 million. Ford and Gundy are both due to make $1.8 million this year.
Nationally, John Calipari scored an eight-year deal worth $3.96 million annually -- plus heavy incentives -- to jump to Kentucky as the nation's highest-paid coach. Florida's Billy Donovan earns $3.5 million. Still, Ford now stands among the top 20 paid coaches nationally.
"My family and I are overwhelmed by the support we have received from Oklahoma State University and extremely grateful for this new contract," Ford said. "Our entire team is committed to succeeding at the highest level."