SIRIUS XM Needs More Directors (SIRI)

SIRIUS XM Radio (NASDAQ: SIRI) has announced the receipt of an official notification from NASDAQ that it is outside of NASDAQ compliance rules.  This is not over its low price, this one is over the “independent director requirement.”  If you see what SIRIUS XM claims, you might ask just how many directors are needed even for the biggest cult stock in the media world.

SIRIUS noted that its June 23 SEC Filing showed that Jeffrey Zients resigned as a director as he was required to step down since being confirmed by the United States Senate as Deputy Director for Management, Office of Management and Budget, of the United States.

Interestingly enough, SIRIUS says it currently has fourteen directors.  The company says that it deems seven of the fourteen to be “independent directors” as defined under the NASDAQ Listing Rules.

The company says that it will comply with the independent director requirement “prior to the earlier of its next annual stockholders’ meeting or June 22, 2010.”

SIRIUS XM closed up 1.6% at $0.4077 today, and shares are down almost 2% on thin after-hours volume by about the same amount it gained.

JON C. OGG
JULY 16, 2009