Sirius Satellite Radio expects to sign an agreement with ex-CEO, now Chairman of the Board, Joe Clayton under which it will pay him a 1.05 million dollar severance in June.

Sirius said it also plans to accelerate the vesting of restricted shares held by Clayton, who stepped down as its chief executive last year, replaced by Mel Karmazin.

Last November Sirius had already granted Clayton options for 2 million common shares. The company at the time said its board also authorized further negotiations. In its annual report, Sirius said the anticipated $1.05 million severance payment to Clayton arises from these further negotiations.

In addition to the severance, Sirius also expects to offer Clayton a bonus for his work this year, according to its report filed late Wednesday with the SEC. Sirius said it sees reimbursing Clayton for his "reasonable" living expenses (ahem!) in New York City, including rent, through May 2005, and some travel expenses.

damn.