Sirius Satellite Radio Inc. said Tuesday that it gave shock jock
Howard Stern an $82.9 million stock bonus after the satellite radio service provider beat a subscriber target set two years ago when it lured the star shock jock away from terrestrial radio.
Sirius ended 2006 with about 6 million subscribers.
Sirius had roughly 600,000 subscribers when it signed Stern in 2004 for a contract valued at $500 million over five years.
"Sirius has significantly outperformed earlier subscriber expectations, now generating over $300 million more revenue than Wall Street expected at the time Howard agreed to join us," Chief Executive Mel Karmazin said in a statement.
Sirius and XM are growing rapidly, but losing big 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, Jimmy Buffett and Martha Stewart.
The award was made under Stern's five-year $500 million contract with
Sirius, a deal that represented more than seven times
Sirius's 2004 revenue. While Stern helped
Sirius beat initial subscriber targets, the company, which ranks second to XM Satellite Radio Holdings Inc., has struggled to meet more recent goals.
Sirius shares slipped 5 cents, or 1.33 percent, to close at $3.71 on the Nasdaq Stock Market, where they have traded from $3.50 to $6.76 over the past 52 weeks.
Source : Reuters
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