What you do not understand is how engineering economics, time value of money, cash flows, and discount rates work.
The discount rate used by FG to project salaries is 4%. This rate is not even comparable to some discount rates used in other industries which are at times above 2 digits. If we were talking about, say a discount rate used in some verticals of the chemical industry which are around 20%, I could understand and justify this 4 Y-contract looking forward, since the NPV would look pretty decent.
Said that, the only way this contract works, is that this guy improves his track record, which is to be seen.