From the Statesman:

"Texas offensive coordinator Greg Davis will make $425,000 this coming season, the same salary as new defensive coordinator Will Muschamp.

Davis’ raise is nearly $75,000 more than he made for 2007."

The article also notes the present salaries of other Texas coaches who received bumps in pay.  

As for Davis, I believe the message is clear:  Losing three games in a season--and the last six against OU/A&M/K-State--exceeds our highest expectations for you, and thus you deserve a 20% pay increase.  Keep it up.  But let's be clear...if you lose four games, you can only expect a 15% pay raise.