Interesting article this afternoon on Bloomberg News: Early Payday for Howard Stern: $219 Million in Sirius Stock
Sirius Satellite Radio awarded shares worth about $219 million to the radio personality Howard Stern before his debut next week, and said yesterday that he had attracted enough subscribers to qualify for the payment under his contract. Sirius will transfer 34.4 million shares to Mr. Stern and his agent on Jan. 9, the day the show begins. Based on yesterday’s closing price, the shares have doubled since October 2004 when they were issued to Mr. Stern, 51, and his agent Don Buchwald, 61, a Sirius spokesman, Jim Collins, said yesterday.
3 responses to “Howard Stern and Section 83”
Curious wording — the stock will be “transferred” to Stern next week, but it was “issued” to him in October 2004? Wonder if there was a section 83(b) election involved…
I bet they were options, which would not ordinarily be subject to section 83, unless deep in the money. Even if he could make the 83b election, do you think he would on all $110,000,000? As his lawyer, would you have reccomended it? Has it been so long since we all had clients hammered by that AMT hit, or that Promissory Note they signed to exercise options?
Was section 409A in effect?