howard suing siriusxm

— Howard Stern and his agent are suing Sirius XM Radio Inc. for failing to pay stock awards they say are due for helping it exceed subscriber growth targets on its way to becoming the dominant satellite radio service in the country.

The New York-based company, which just signed Stern to a second five-year contract, said it was "surprised and disappointed" at the suit and said it had lived up to the obligations of their previous deal.

In the suit filed Tuesday in the Supreme Court of the State of New York, Stern's production company, One Twelve Inc., and his agent Don Buchwald said that Sirius made an initial bonus stock award after Stern started in January 2006 but failed to do so over the subsequent four years.

The suit claims that Stern helped Sirius exceed its subscriber targets by at least 2 million subscribers in each year of the contract, triggering a new stock award each time.

It also said Stern put Sirius in a position to complete its 2008 acquisition of XM Satellite Radio Inc., which had also courted Stern years earlier.

Sirius had around 230,000 subscribers to XM's 1.3 million at the end of 2003. As of the end of December, the combined company had 20.2 million.

Buchwald and Stern were told last year by Sirius XM's general counsel, Richard Basch, that later bonus stock awards were not granted because the company did not include XM's subscriber base toward the total number of Sirius subscribers.

"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."

The suit follows a public feud last year that preceded the end of his $500 million, five-year contract.

The bickering appeared to end when Stern, 57, announced on his weekday morning show in December that he had agreed to a new deal running through 2015, although terms were not disclosed.

Stern, whose show airs from 6 a.m. to 10 a.m. Eastern time Monday through Thursday, freed himself from the confines of terrestrial radio on Dec. 16, 2005, after hosting a wildly popular show syndicated by a division of CBS Corp.

Sirius shares fell 6 cents, or 3.2 percent, to $1.65 in after-hours trading Tuesday after closing the regular session off a penny at $1.71.

Category:

News & Politics

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• howard
• stern
• ericthebedhumper

[whatsforlunchfatass]

I think most of you are missing the point to the lawsuit. It was a performance bonus for his dealing in the 2nd, 3rd, and 4th year. His agreement was to get subscribers, and he did just that, from 600,000 to well over 3,000,000 in four years. He was given a base salary of 25 million a year, and stock incentive that "COULD" equate to 500 million in "par" value. His efforts added 34 billion dollars to the bottom-line, and for that he was to get 50 million shares. He's earned it.

[rage0holik]

man it just pisses me off how these companies treat howard after all he does for them.

[NY1love]

@FlashVirus You are misappropriating the word "greed." It is not greedy to want money that CONTRACTUALLY belongs to you. Heres greed. Sirius XM keeping money for themselves! That is greedy.

[NY1love]

@whatsforlunchfatass You are absolutely correct. He does deserve it.

[FlashVirus]

@Rahab111222

Yeah since the merger it seems like SIRIUS XM has basically become a terrestrial corporation. Same shitty, greedy attitude. I miss the days of XM pre-merger where it was top quality service.

[FlashVirus]

I do think Stern is being a bit greedy. But not nearly as greedy as SIRIUS XM that tries to nickel and dime their customers.

[hernje]

@whatsfor... You're wrong about revenue brought in by Jewboy funded the XM buyout, but for the sake of argument, let's say your assertion is correct. Jewboy's bonus was strictly based on additional Siri subscribers, not XM subs inherited through the merger and certainly not revenue generated by Stern. You Kool-Aid drinkers just keep proving your stupidity with every post.

[whatsforlunchfatass]

@729Drew Thank you.

[729Drew]

@whatsforlunchfatass

It's too bad all the "Fans" arn't as educated on the matter...starting to see alot more and more of guys like Hernje with their blatant hatred for howard's money/life/woman/house/worksch­edule etc etc etc...couldn't agree with ya more tho

[blaklodge]

@hernje What? What?! Don't you know how to type, you dumb motherfucker? Just keep typing the same shit and tripping over the keys, you stupid redneck. Secede from the union and do us all a favor.

[blaklodge]

@hernje The bigger dolts are racist pieces of shit like you. Go back to cow tipping and horse fucking you uneducated ree-tahd

[hernje]

Continuing the thought below... When are you Kool-Aid drinking dolts going to wake up and see the true evil makeup of Howard Jewboy Stern?