Howard Stern and his agents sued Sirius XM today for allegedly failing to pay stock awards.
Stern claims he is due the stock awards for helping Sirius exceed its subscriber growth targets and subsequently leading the company to top spot in satellite radio.
Stern, who resigned with Sirius this past December, is claiming the company made “an initial bonus stock award after Stern started in January 2006 but failed to do so over the subsequent four years.” From the AP:
The suit claims that Stern’s signing 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, it had 20.2 million.
Buchwald and Stern were told last year by Sirius XM’s general counsel, Richard Basch, that the bonus stock awards were not granted because the company did not include XM’s subscriber base toward the total number of Sirius subscribers.
It’s not clear how much Stern is suing for and XM has yet to comment on the suit.
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