Karmazin Gives Up 30 Million Share Options (SIRI)

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By Douglas A. McIntyre Updated Published
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SIRIUS LOGOSIRIUS XM RADIO INC. (NASDAQ: SIRI) submitted an SEC Filing today noting a significant forfeiture on the surface.  CEO Mel Karmazin voluntarily forfeited an aggregate of 30,000,000 non-qualified options to purchase shares of SIRIUS XM common stock.

These options had an exercise price of $4.72 per share, of which some 24,000,000 were vested and 6,000,000 were unvested.

Upon forfeiture of these stock options, the shares underlying this award became available for grants under the Amended and Restated Sirius Satellite Radio 2003 Long-Term Stock Incentive Plan.

The company noted in the filing, “Mr. Karmazin’s choice to forfeit these options will allow us to more efficiently use the shares authorized under the Plan to meet the Plan’s purpose to attract, motivate and retain key employees.”

The filing also stated that Mr. Karmazin did not receive any consideration in exchange for the forfeiture of these stock options.  FULL FILING

It has done nothing on the surface today.  SIRIUS XM stock is down 5% at $0.37+ on roughly 50 million shares of common stock.

JON C. OGG

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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