Stern, agent to get $220 million in Sirius stock

[Itsme]

What a crock...no one is worth that kind of money, and no one can tell me that giving him this kind of money doesn't have a negative effect on Sirius's working capital to develop new products and services.

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Stern, agent to get $220 million in Sirius stock

By Reuters

Published: January 5, 2006, 1:46 PM PST

Howard Stern is moving to the Sirius Satellite Radio network. CNET News.com's Charles Cooper, John Borland and Harry Fuller debate whether CEO Mel Karmazin is crazy like a fox--or simply crazy.

Sirius Satellite Radio said on Thursday that it plans to issue 34.38 million shares of its common stock, currently worth about $220 million, to its new radio personality, Howard Stern, and his agent, Don Buchwald.

In the company's October 2004 agreement with Stern, Sirius agreed to deliver the shares in December 2010, or earlier, if at the end of any fiscal year, it had exceeded agreed-upon subscriber targets. On Dec. 31, the subscriber target was surpassed. The shares will be issued Jan. 9.

[KIISQueen]

U beat me to it. Anyways that is some serious cashola

[zippyjuan]

They issued new shares of stock which were sold on the market to investors. The money didn't come out of their capital. That will dilute the value of other shares which could at least temporarily cause the stock price to dip. Last month the former president of an accounting firm that Stern used pleaded guilty to insider trading in Sirius shares before the news of Stern's move to Sirius was made public. Gary D. Herwitz, 50, formerly of Mahoney Cohen & Co., faces up to 16 months in prison at his sentencing in March.
This is probably one installment of the $500 million they offered Stern. Give me that kind of money and I'll work for you too. He hasn't even reported to work yet. Where is my pooper scooper?

[ialsohaveadream]

They're giving Stern that much money because he's the one that's driving their subscriptions. People are buying Sirius receivers and programming to hear Howard. Plus, by giving him stock, you help get him interested in making sure the company does well.

[OremuS]

I am pretty sure that the $500 mil figure was a total for the whole shows budget including sterns pay. I would guess that his deal was worked out with this huge stock payout and then something a little more than the $25 mil per year he was making before the move. I still would not doubt that his 5 year total comp will be in the $3-400 million range because we all know that Robin, Artie, Fred and BahBah Booey are not this kinda cash.