NEW YORK — Newly minted Sirius Satellite Radio CEO Mel Karmazin made good on his pledge Monday to align his interests with those of Sirius shareholders by buying $8 million in stock with his own cash.
Former radio honcho bought 1.5 million shares of Sirius at $5.36 a share, a price his appointment helped to inflate.
Karmazin was also awarded 30 million stock options at the satcaster that vest 20% a year during the course of his five-year deal.
The options, priced at $4.72 per share, were deep underwater when he was negotiating his deal with Sirius, but he’s already in the black on those options as investors snap up Sirius shares in the wake of the hiring of Karmazin and his onetime employee, Howard Stern.
Shares in Sirius rose more than 15% on Monday and shares are up a whopping 75% since Oct. 4, the day Stern announced he would join the satcaster.
Sirius shares are up 31% since Karmazin signed with Sirius last week.
Toward the close of markets on Monday, Sirius shares were threatening to break the $6 per share level for the first time since 2002. Earlier that year it traded over $70 a share.
Since then, company flirted with bankruptcy and underwent a saving recapitalization that gave early investors pennies on the dollar.
Sirius shares closed up 80¢ to $5.97 on the Nasdaq.