AllThingsD » exercise price http://allthingsd.com Sat, 26 May 2012 02:18:50 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 http://allthingsd.com/theme/images/logo-rss.jpg All Things Digital http://allthingsd.com/ 144 22 Heck of a Job, Karmi http://allthingsd.com/20090702/heck-of-a-job-karmi/ http://allthingsd.com/20090702/heck-of-a-job-karmi/#comments Thu, 02 Jul 2009 12:10:56 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=20608 mel-karmazin-2Bad news for Sirius XM shareholders hoping for a change in management: Mel Karmazin’s five-year contract as CEO of the satellite radio provider has been extended through December 2012. And he’s been given a raise and new stock options to boot.

In a filing with the Securities and Exchange Commission, Sirius XM said it will raise Karmazin’s base salary to $1.5 million from $1.25 million beginning on Jan. 1, 2010, and grant him an option to purchase 120 million shares at an exercise price of 43 cents a share. His reward for steering the company clear of bankruptcy after driving it right up to its very edge, I suppose.

Sirius (SIRI) investors who’ve seen their stock plunge to 46 cents from $2 a share can be forgiven for questioning the wisdom of such a move and wondering if perhaps there wasn’t a better use for a quarter of a million dollars at a time when the company is buried in debt. But there’s nothing much to be done about it now. Suffice it to say, the odds of Karmazin being forced out at this point are likely pretty slim.

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]]> http://allthingsd.com/20090702/heck-of-a-job-karmi/feed/ 1 GFAIL http://allthingsd.com/20090514/gfail/ http://allthingsd.com/20090514/gfail/#comments Thu, 14 May 2009 22:10:13 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=17711

[ See post to watch video ]

]]> http://allthingsd.com/20090514/gfail/feed/ 0 By the Time SIRI Hits $4.72 Per Share, I’ll Be Dead Anyway http://allthingsd.com/20090514/by-the-time-siri-hits-472-per-share-i%e2%80%99ll-be-dead-anyway/ http://allthingsd.com/20090514/by-the-time-siri-hits-472-per-share-i%e2%80%99ll-be-dead-anyway/#comments Thu, 14 May 2009 14:40:57 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=17667 mel-karmazin-smilejpgSirius XM Radio CEO Mel Karmazin says his decision to forfeit 30 million company stock options is a generous enhancement to the company’s stock incentive plan, one that will help it “attract, motivate and retain key employees.”

Quite the altruist, that Karmazin.

But let’s be honest here. Given that the options, of which 24,000,000 were vested and 6,000,000 unvested, had an exercise price of $4.72 per share and that Sirius’s stock is trading at about 35 cents, they really weren’t worth anything. So a nice addition to the company’s incentive plan, but an ironic one in that Karmazin had little incentive to keep the Sirius (SIRI) options he’s forfeiting.

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