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December 24, 2004
Karmazin's Sirius Options Worth $240 Million
There's a whole lotta money involved with Mel Karmazin's move to Sirius Satellite Radio. Mel's 30 million of Sirius Satellite Radio stock options are now worth about $240 million, forming a major part of his compensation at Sirius, when he became CEO of Sirius last month.
Based on the exercise price of $4.72 per share, the value of the options were nearly $142 million back when it was formulated five weeks ago. Since SIRI is currently at $7.95/share, if he were able to exercise the options now, he would gross about $100 million.
On top of all that, Karmazin was also given 3 million time-restricted stock grants. This means Mel will be granted 600,000 shares every November for the next five years.
Mel also purchased 1.5 million shares at $5.36/share when he joined the company.
Under his five-year contract, Mel earns a base salary of $1.25 Million per year, plus a bonus to be determined each year by the board of directors.
Damn.
(As an interesting side-note, Joseph Clayton (Chairman of the Board of Directors) and Patrick Donnelly (Executive Vice President and General Counsel) both dumped good amounts of SIRI stock yesterday - 2,000,000 shares and 750,000 share respectively. Take from that what you wish.)
December 24, 2004 07:06 AM
