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.