Shocking: Howard Stern Nets $83 Million Bonus from Sirius Satellite Radio

Fox News ^ | 01/08/2007 | unstated

[iowamark]

NEW YORK — Sirius Satellite Radio (SIRI) paid shock jock Howard Stern a bonus worth nearly $83 million on Tuesday for surpassing subscriber goals set in a 2004 contract that had already turned heads with its $500 million compensation package.

The freewheeling and ribald Stern joined Sirius one year ago... His defection marked a turning point for the nascent business of satellite radio, with both Sirius and larger rival XM Satellite Radio (XMR) paying millions more to sign on other talent and attract listeners to their subscriber model.

Sirius had roughly 600,000 subscribers when it signed Stern in 2004 for a contract valued at $500 million over five years.

At the time, analysts had forecast the company would grow to about 3.5 million subscribers by the end of 2006. Sirius and Stern agreed to an added bonus in the event that the number of subscribers exceeded that forecast by more than 2 million. Last week, the company reported that it ended 2006 with more than 6 million subscribers, at the middle of a forecast range made in December, triggering the bonus payment of about 22.1 million shares.

"The decision to bring Howard Stern to Sirius required a very significant commitment and we are very pleased that our investment has dramatically paid off," Sirius Chief Executive Mel Karmazin said in a statement...

Both Sirius and XM are growing rapidly, but losing money as they aim to improve their technology and sign on top-shelf entertainment, from the largest U.S. sports leagues to celebrities like Stern, Oprah Winfrey and Martha Stewart.

Sirius and XM shares have also shed more than 40 percent of their value in the last year, compared with a 10 percent rise in the Standard & Poor's 500 Index...

[iowamark]

Spending hundreds of millions but no sign of breaking even on the horizon.

[Red Badger]

RU Sirius?.......

[2banana]

Amazing how companies that have never made a PROFIT spend money...

[Joe Bfstplk]

I am amazed at how some people are able to convert their foul mouth to such riches. Sam Kennison was another.

[Tanniker Smith]

THey have to be kidding me. THey're bleeding money and they gave him how much???

[My2Cents]

paying millions more to sign on other talent and attract listeners to their subscriber model

I can live without Howard Stern, and without satellite radio. Now, if they signed an exclusive contract with El Rushbo....

[beansox]

It wasnt cash. They gave it to him in "shares".

[encm(ss)]

Not every company that has good products are good for investors. (Not that I think Stern is good, but the idea of satelite radio IS good.)

[My2Cents]

THey have to be kidding me. THey're bleeding money and they gave him how much???

Prediction: Sirius Satellite Radio will go belly-up in the next one to two years, but before it does, their CEO will be sent packing with a huge severance payment.

[Tanniker Smith]

I see that they're down 5 cents today and trading near their low. Maybe I'll give it a day or two and average down. I actually think that these guys will be worth something sometime. The problem is that it's like losing money while you wait for that to happen. (You could be making money elsewhere in the meanwhile.)

Even SIRI or XM (or both) will eventually be a winner. Guessing which is the problem, and buying both is anti-diversification, which aint smart.

[Uncle George]

Satan pays his workers well.

[GOPologist]

I guess I just didn't use the correct foul words.

[Delbert]

I cant believe he is getting all that money to sit around and talk about girls and boobs. i have been doing that all of my life and havent earned one cent from it. : (

[traditional1]

Luckily, he isn't a Wall Street stock trader, or the MSM would be all over him for "obscene profits".

Another double standard demonstration from the Left, and pure hypocrisy.....

[kingu]

XM uses money to pay off debt, Sirus uses money to expand. I've got XM, and very much enjoy it, especially when I'm on long trips and hate playing the radio station game. And it was refreshing to listen to actual Christmas music instead of 'holiday PC festivalia' that's presented on commercial stations.

[Graybeard58]

I cant believe he is getting all that money to sit around and talk about girls and boobs. i have been doing that all of my life and havent earned one cent from it. : (

But you probably have never spanked a lesbian and that's the big difference.

[Gay State Conservative]

The freewheeling and ribald Stern...

Is that another way of saying "worthless punk"?

[cinives]

LOL

[HarmlessLovableFuzzball]

Limbaugh makes pittance compared to what this guy gets. Correct me if I am wrong. ( Limbaugh & Leno make about the same)

[cryptical]

Sam Kennison was another.

Preaching just didn't pay as well...