Pena, Red Sox agree to one-year deal
Pena can earn an additional $100,000 in performance bonuses: $25,000 each for 325, 350, 375 and 475 plate appearances.
After making $1.25 million last year, Pena had asked for $2.2 million in arbitration and the team had offered $1,725,000.
"We certainly weren't afraid to go" to the hearing, general manager Theo Epstein said, but "both sides are satisfied."
The Red Sox have not had an arbitration hearing since Epstein took over as general manager in 2003.
Pena, obtained from Cincinnati for pitcher Bronson Arroyo last March 20, is Boston's fourth outfielder but can play all three positions.
"There are plenty of plate appearances" for an extra outfielder that can play all the spots, Epstein said, "and Wily Mo is going to scoop all those up."
Last season, Pena hit .301 with 11 homers and 42 RBIs in 84 games but was hindered by a wrist injury.
Copyright 2007 by The Associated Press