Bennett released the statement at a 10:15 a.m. press conference on campus Wednesday morning.
The former Southern Miss Director of Athletics held the job from 1986-1999.
The agreement covers five years and encompasses total compensation for the University of $2.75 million.
Monken spent the previous two seasons as Offensive Coordinator at Oklahoma State.
Hammond joined the Golden Eagle athletics staff as a senior associate director of athletics in July 2010 following a distinguished military career. In his role at Southern Miss, he has worked to raise funds and plan the celebration of 100 years of athletics, "A Century of Championships and Commencements."
"I am most grateful to The University of Southern Mississippi for the opportunity to lead our athletics department into the future," Hammond said at his hiring press conference. "I appreciate the trust of both (University President) Dr. (Martha) Saunders and Dr. Lucas, and the support of many wonderful Golden Eagle supporters across the state of Mississippi and throughout the world. My commitment is to lead by example, from the front, always demonstrating a love for our University and the moral courage always to do the right thing. It is time to come together as a University team and chart a course into the future on the eve of the 100th anniversary of Southern Miss athletics."
Hammond began his military career in 1978 following graduation from Southern Miss, where he earned bachelor's and master's degrees in special education. He was a quarterback from 1976 to 1978 and team captain for the Golden Eagle football team.
Upon graduation, Hammond was commissioned as a second lieutenant, and eventually rose to the rank of major general. During his military service, he commanded a division of 28,000 soldiers and their families at war for 15 months, resulting in long-term sustainable security across Baghdad, Iraq.
His professional military decorations include earning the Distinguished Service Medal twice, Defense Superior Service Medal, Legion of Merit and the Bronze Star three times.
In addition, he earned the Combat Action Badge and was awarded the Joint Chiefs of Staff and Army Staff Identification badges. Over the years he deployed on four different occasions, three of which involved combat operations and one involving enforcement of the Dayton Peace Accord. His staff experience range from the Army Director of Operations, Readiness and Mobilization, located in the Pentagon to include duty with the Pentagon Joint Staff, and the Allied Command Europe Rapid Reaction Corps, Germany.
Hammond and his wife Diane, who is also a Southern Miss graduate, have been married for 29 years. They have two children, Michael and Megan.