Sirius XM Pays CEO Some Serious Cash
Sirius XM Radio Inc. (NASDAQ:SIRI) paid CEO Mel Karmazin $11 million for 2012. Karmazin left Sirius in December 2012 as Liberty Media (NASDAQ:LMCA) was in the process of taking control of the company through stock purchases. The majority of Karmazin’s compensation for 2012 was made up of a $9.5 million cash bonus, according to Billboard. The CEO bonus was awarded because of a 2 percent increase in Sirius subscribers and a 71 percent increase in free cash flow, which now stands at $709 million.
Karmazin was not the only executive at Sirius to receive a handsome sum. According to SEC regulatory filings, current Sirius CEO James Meyer earned $3.3 million in 2012, up from $3.1 million and Scott Greinstein–chief content officer–made $2.4 million, up from $2.3 million. However, Chief Financial Officer David Frear was paid $2.1 million in 2012, down from the $20.8 million he made in 2011 as part of a $18.9 million stock option award…
Sirius XM appointed Liberty Media CEO Greg Maffei as its chairman on Wednesday and revealed new board nominations in its 2012 annual report, according to Fox Business. David Zaslav, the CEO of Discovery Communications Inc. (NASDAQ:DISCA), was nominated to the board along with Evan Malone, the son of Liberty Media chairman John Malone. The appointment of the board nominees will be voted on at Sirius’s annual shareholder meeting in May.
The takeover of Sirius by Liberty Media — a media investment company which owns stakes in a number of companies including Barnes & Noble Inc. (NYSE:BKS) — was a drawn-out, months-long battle. The board nominations and the appointment of a new chairman consolidates Liberty Media’s control over Sirius. Sirius’s success is in Liberty Media’s hands now.