One More Year As Sirius XM CEO


Jim Meyer has a new deal that’s keeping him in the chief executive role at Sirius XM Radio.

But, it’s not a multi-year agreement. The just-finalized deal keeps Meyer on only through the end of 2018.

According to an SEC filing made by Sirius XM late Thursday (1/11), the company and Mr. Meyer on Wednesday (1/10) agreed to a new employment agreement — one that is “substantially similar” to his existing agreement.

This means he’s getting a base salary of $2 million and is eligible for a bonus, based on the achievement of performance goals.

The employment agreement does not provide for a specified annual bonus target opportunity. It also provides, in the case of “certain qualifying terminations,” for a pro-rated bonus payment for the year of termination based on actual performance, and a lump sum cash severance payment equal to the remaining amount of Meyer’s base salary through Dec. 31.

However, Meyer is getting restricted stock units valued at $7.5 million. They will cliff fest on Dec. 31.

What should happen in the event of Meyer’s termination?

“We have agreed to offer Mr. Meyer a three-year consulting agreement,” Sirius XM said.

Should that happen, Meyer will be paid a fee of $2.2 million per year.

What if he is incapacitated or dies?

A lump sum of $6.6 million will be paid “as compensation for the lost consulting opportunity.”

This is subject to Meyer’s “execution of a release of claims against us and his compliance with certain restrictive covenants,” Sirius XM notes.