Stern: “Sirius-XM owes me $330m”
February 15, 2013
By Chris Forrester
Howard Stern broadcasts daily on Channels 100/101 on US pay-radio service Sirius-XM. While he has something of a reputation for his uncensored radio show, he now describes himself as the “King of all Media”. Certainly he continues to shock his employers by maintaining a claim that Sirius-XM owes him a not so shocking $330 million in stock options.
Stern, reportedly worth more than $500 million, and just re-confirmed to be a judge on ‘America’s Got Talent’, is appealing the decision made in a lower court that he was not entitled to the options. Stern is claiming that he was promised the extra benefits should his appearance on Sirius generate extra subscriptions – which Stern claims is what happened.
Stern joined the pay-radio operator back in January 2006 when the broadcaster had just 673,000 subscribers. He received a pay check worth $500 million paid over 5 years, and re-signed in 2010 for another $400 million. Sirius, now merged with rival XM, has more than 23.9 million subscribers.
In April 2012, New York State Supreme Court Justice Barbara Kapnick dismissed the case, calling the wording in Stern’s original contract with Sirius “clear” and “unambiguous.” Stern’s appeal is being heard by a 5-judge panel in the New York state appeals court.