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Howard Stern Is Sirius-ly Ticked About His Pay Package

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In December, Howard Stern took to the air and told a Sirius XM (NSDQ: SIRI) exec that he’s “not taking a f—ing pay cut.” Two days later, Stern renewed his contract, but terms weren’t disclosed. But apparently there are some pretty serious lingering issues with that pay package, because today Stern and his agent sued Sirius XM in New York state court, according to an AP report. The shock jock says that he helped the satellite radio service beat all its growth targets, but he didn’t get stock bonuses that he was promised.

“When Sirius needed Stern, it promised him a share in any success that the company achieved,” the suit said. “But now that Sirius has conquered its chief competitor and acquired more than 20 million subscribers, it has reneged on its commitment to Stern, unilaterally deciding that it has paid him enough.”

Stern got one stock award, back in 2006. But Sirius XM’s general counsel, Richard Basch, told Stern that additional stock grants weren’t warranted because of how the company calculated its subscriber base.

Sirius told the AP it was “surprised and disappointed” by the lawsuit, and said it had abided by the terms of the deals it had made with Stern.

Back when Sirius made those promises, “Sirius needed Stern more than Stern needed Sirius,” wrote Stern’s lawyers in the lawsuit, according to a report on TMZ. Stern’s bonuses were supposed to be based on subscriber estimates that ranged from 3.7 million in 2006 to 12.1 million in 2010. But Stern “blew those estimates out of the water” and Sirius now has a subscriber based of more than 20 million subscribers.

4 Responses to “Howard Stern Is Sirius-ly Ticked About His Pay Package”

  1. While it’s true that Stern made Sirius what it is, “Yogi67” is right – because all of those incentives were built into his contract, Sirius shareholders have suffered as a result of Stern’s success. It’s ironic, but Stern’s success has actually hurt Sirius.  IMO, that’s what this is really about.

  2. People have a short term memory…..stern kept Sirius afloat during it’s darkest days. Also, everyone was so busy trying to follow their greed they did not look at the big picture or how the economy was or what the FCC planned to do… a result of the FCC acting like [email protected]#$ they almost put Sirius out of business….the money that Stern was bring in is what kept things going so if someone is complaining about their stock they should have done their researrch instead of blaming Stern for what’s going wrong in their life and this is from someone who isn’t a fan of Sterns.