Torre rejected the offer Thursday after meeting with team officials in Tampa, Fla.
"The terms of the contract were probably the thing I had the toughest time with," Torre said in an opening statement. "One year, for one thing, the incentives, for another thing. The fact that I’d been there for 12 years, I didn't think motivation was needed."
Money, Torre said, was an issue, but taking a pay cut from a reported $7.5 million to $5 million was not a big concern.
The one-year offer and the playoff bonus system were the decisive factors.
"The incentives, to me, I took as an insult," he said. "I don't know how to say one is never enough, two is never enough."
Torre won four World Series titles, went to the post-season every year, and is the winningest manager in franchise history.