In a very informative short piece, the Wall Street Journal reports that Howard Stern has filed suit regarding Sirius/XM’s failure to pay Stern and his agent stock bonus payments that were part of Stern’s compensation package. Stern initially did not press for the payments for a few years but has now filed suit for non-payment. The main issue in the dispute is whether XM subscribers post merger can be included in the target subscriber base numbers which trigger stock bonus payment obligations. The article states:
Howard Stern, who seems to be in a perpetual fight with his bosses, is at it again.
The production company for the radio personality is suing Sirius XM, claiming the satellite radio company has refused to pay stock awards it owes to him based on subscriber targets in Stern’s contract. The lawsuit also says Sirius owes money to Stern’s agent under a consulting agreement.
“World-renowned radio personality Howard Stern (“Stern”) put Sirius on the map,” the lawsuit says. “But, with the exception of a stock award that Sirius paid for the initial year of Stem’s contract, Sirius has refused to pay One Twelve [the production company for Stern’s show] the additional performance-based stock awards to which One Twelve is entitled.”
Another interesting article on the dispute appeared in Forbes. That article provides some speculation on the behind the scenes motives driving the case and can be read by clicking here.
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