Howard Stern gets one hell of a bonus!

**LynnieD** · January 9th, 2007, 11:38 AM

I wasn't sure if this was 'gossip' or 'news'......

NEW YORK (Reuters) -- Sirius Satellite Radio paid Howard Stern a bonus worth nearly $83 million 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, jumping from the FM dial where he rose to become one of radio's biggest stars but frequently bridled at government indecency regulations and ties with his corporate bosses.

Sirius radio personality Howard Stern

His defection marked a turning point for the nascent business of satellite radio, with both Sirius and larger rival XM Satellite Radio 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.

XM subscriber count falls short in '06
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. Sirius closed at $3.76 on Tuesday.

Sirius (down $0.02 to $3.74, Charts) shares fell less than 1 percent during morning trade on Nasdaq.

"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.

Sirius said the bonus to Stern would not increase its diluted share count and that expenses related to the payment have been reflected in operating results throughout 2006.

Both Sirius and XM (down $0.04 to $15.14, Charts) are growing rapidly but losing money as they aim to improve their technology and sign 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, with investor concerns ranging from the ability to meet new subscriber targets to a weak retail sector.

Stern's contract with Sirius offers additional stock-based bonuses for exceeding subscriber targets on an annual basis, but the threshold grows increasingly higher over time and is substantially greater than 2 million.

That makes it less likely the radio host would qualify for another bonus going forward unless Sirius posts tremendous new growth.

http://money.cnn.com/2007/01/09/news...ex.htm?cnn=yes

**greysfang** · January 9th, 2007, 11:44 AM

That's obscene.

**AliceInWonderland** · January 9th, 2007, 11:45 AM

GAWD-DAMN!

**aabbcc** · January 9th, 2007, 01:29 PM

I don't get why people would pay for radio when you can listen to your regular radio for free. You can also find specialty stuff online [welsh and gaelic radio, for example] and on cable tv music channels. I doubt I would ever pay to listen to Howard Stern spout off.

**Mel1973** · January 9th, 2007, 01:30 PM

People love that XM and Sirius shit, I don't use it but I know a lot of people who do. Plus, alot of cars being sold now, come with it free in your car for a year. The year rolls around and your used to it or don't give two shits about unsubscribing or whatnot???

**aabbcc** · January 9th, 2007, 01:34 PM

I don't drive, so they'll never get me that way.

**LynnieD** · January 9th, 2007, 01:51 PM

I LOVE Howard Stern and I love my Sirius radio...but seriously, that's just nuts. 83 mil????

**Mel1973** · January 9th, 2007, 01:51 PM

Oh, I think they will try and find some way to sneak it in on you. My ex sil is a notoriously frugal (some say cheap) person and they managed to convince her it was ok because the first year was free. Of course, I'd also bet you that she has a reminder set on her cell phone one week from the date of said year that she will be calling and cancelling service before the first bill comes due....

**teforde23** · January 9th, 2007, 01:57 PM

I'm a football nut so I'm thinking of getting XM next year because they have the radio broadcast of all the games. I have heard that Sirius and XM are gonna going forces so that would be great.
Regular radio is crap now. The play the exact same songs every hour. Z100 in NYC is the worst. I just want to hear music without the commercials and talking.