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Technology Stocks : Sirius Satellite Radio (SIRI) -- Ignore unavailable to you. Want to Upgrade?

To: rrufff who wrote (3583)	1/19/2006 8:53:07 AM
From: Esoteric1	Read Replies (1) \| Respond to of 8420

Sorry Haven't Seen Canada Revenue breakdown. fool.com The man with the crystal ball -- Sirius CEO Mel Karmazin -- apparently believes there's still plenty of value to be had. Thursday, he bought 1 million shares of Sirius for an average price of $6.21 per stub. It's also the second time Karmazin has bought stock in the company. Days after being named CEO in November of 2004, he bought 1.5 million shares. Today, his holdings comprise more than 5.5 million stubs, according to the latest filings with the SEC. But there's much more to this story. According to the latest proxy filing with the SEC, Karmazin's buying could be intended to satisfy a condition of his employment agreement. Here are the specifics, found on page 14: During 2004, the Compensation Committee formalized a common stock ownership requirement for all of our officers. Over a five-year period, all of our officers are required to acquire, and hold, shares of our common stock. Specifically, our Chief Executive Officer is required to acquire shares of our common stock having a value equal to or greater than five times his base salary... The full impact of this requirement doesn't really sink in till you flip the page and get into the details of Karmazin's compensation package: We pay Mr. Karmazin a base salary of $1,250,000 per year, and annual bonuses in an amount determined each year by the Compensation Committee of our board of directors. Put together, these conditions dilute the value of Karmazin's purchasing. Or do they? Consider the math: $1.25 million per year for five years equals $6.25 million. Karmazin spent a little over $8 million to buy shares when he first joined the company, which makes Thursday's purchase completely free of obligation -- a very bullish sign.