Basic Compensation under the current rules explainedhttp://mlb.mlb.com/news/article.jsp?ymd=20130212&content_id=41560238&c_id=mlb
Right now the fan base wants Weiters signed to a long term contract. However, going beyond 6 years seems somewhat crazy considering Catchers usually end up with knee problems. When you figure that Weiters is likely to get top dollar it's really nuts to commit that long term.
While it might be a public relations issue for the not to savvy part of the fan base. The team may have to go to arbitration over and over with him. When he hits free agency make a one year qualifying offer to get a draft choice for him.
Or... as ofahn suggested try to deal him if the team is struggling in the standings around the all star break this year or next in exchange for a ML piece and the best package of prospects you can get. I like Matt Weiters, he's an excellent Catcher and good offensive contributor regardless of this early slump he seems to be in. This Mauer with Power garbage is hype. He isn't Joe Mauer.
Personally if his agent has his own plans and the Orioles are just being worked. I would favor trading him.
I still think the team is not in a position to make a sustained run at the playoffs. If the team can better itself long term by taking some short term pain and making a deal then so be it. We've still too many ifs and buts to tie up the payroll for 8-10 years.