- The Washington Times - Tuesday, January 9, 2007

NEW YORK (AP) — Sirius Satellite Radio Inc. paid Howard Stern an $82.9 million stock bonus yesterday after the company beat a subscriber target set two years ago when it lured the star shock jock away from terrestrial radio.

The bonus came one year after Mr. Stern started broadcasting his hugely popular, racy program on satellite radio. The stock bonus is on top of Mr. Stern’s five-year, $500 million pay package that he signed in October 2004.

Sirius said that it paid Mr. Stern slightly more than 22 million shares of stock after exceeding a year-end subscriber goal for 2006 by more than 2 million.

Sirius ended last year with just over 6 million subscribers, compared with projections of about 3.5 million from Wall Street analysts when the company signed Mr. Stern’s employment agreement.

Sirius and its main competitor, D.C.-based XM Satellite Radio Holdings Inc., have suffered significant losses as they spend heavily on talent and on acquiring subscribers. Both said they turned profitable on an operating basis in the fourth quarter.

Sirius’ shares slipped 5 cents, or 1.33 percent, to close at $3.71 on the Nasdaq Stock Market.



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