New York – Radio host Howard Stern has sued his employer,
Sirius XM Radio (NASD: SIRI), claiming the company failed to provide performance-based stock
awards included in his contract, according to The Hollywood Reporter. Stern
signed a multi-million dollar deal with Sirius in 2004, before it merged with
XM in 2008. Prior to the merger, the complaint claims, "Stern decided not
to demand [the stock award] payments while Sirius was struggling or reportedly on
the verge of bankruptcy."
After the merger, Sirius XM surpassed the
performance-based goals set forth in Stern’s contract, but allegedly failed to provide
the promised stock awards.
"Now that Stern has put the company on the map,
brought in millions of subscribers, and helped it conquer its chief rival,
Sirius has unilaterally decided that Stern has been paid enough," the
For its part, Sirius XM has denied Stern’s allegations.
XM just signed a contract through 2015 with Howard Stern, and he is a valued
part of our company," the company said in a statement.
"We were thus
surprised and disappointed by the subsequent legal action initiated by his
production company and agent. We have me all our obligations under the terms of
our 2004 agreement with Howard, his agent and production company.