Howard Stern will receive shares worth $220 million due to a clause in his contract with Sirius Satellite radio over subscriber numbers. I assume that he had a clause that if they hit a certain number -- presumably due to him moving to them -- that he would get a bonus. The target subscriber base that kicked in the clause was undisclosed, but Sirius claimed 3.3 million subscribers at the end of 2005.
Howard Stern signed a 5 year $500 million contract with Sirius in 2004.
In a regulatory filing Thursday, Sirius said its subscriber count as of Dec. 31, 2005, exceeded the target it had agreed upon with Stern in October 2004, when it made a five-year deal with him.
At the time, Sirius said its deal with Stern would be worth about $100 million per year beginning in 2006. The 34.4 million shares were worth about $110 million then, but the stock has roughly doubled. The increase has given Stern a windfall of about $100 million to date.
Stern begins his new show on Sirius on Jan. 9, having left his longtime employer Infinity Broadcasting, which has been renamed CBS Radio, a unit of CBS Corp.
Amazing amount of money for not having started at the place. Talk about an advance!
i am one of the many stern fanatics. i love his show and bought satelite radio a year ago and love it. isn't it great that only in this great country we live in, that you can use your your opinion to make a whole lot of money. more power to howard stern, and god bless america.
Posted by: chucky boy on January 14, 2006 02:08 PM