4 year contract and he needs it (imo he'll win a title before then) The club needs stability and chopping and changing every 6 months takes us further away from where we need to be.
When we got promoted we should have had a 3 year plan at that point to try and gradually build our way back to 1st, especially when you consider how the board have been in terms of transfer fees spent. Before this season roughly 10 mil over two years is gonna take a while to get to celtic's level. Then dumping a manager who spent most of that 3 months later is terrible (not trying to suggest Pedro shouldn't have been).
Lets say Gerrard's spending goes to 10 mil this window and it would roughly be the same next year then there should be enough there to really compete and we can start judging him in terms of going for a title (though this season we need to see progress, 2nd and a cup say?) Though I would argue if he sorts out our home form (still to be seen) and the defence (not perfect but looks much better already) we can compete for the title.
The reason I think he'll be given time is because he is King's man and I can't see King giving up on him like the board did with Pedro. Maybe I'm giving them too much credit but I do believe they have learned from their mistakes regarding discarding managers so quickly.