Heavenly Paycheck for Sirius Chief

Sirius Satellite Radio (SIRI Quote) executives received hefty rewards for their part in restructuring the money-losing company last year.

On top of his $1.3 million salary and bonus, CEO Joseph Clayton received restricted stock worth $14 million at 2003's close, as well as stock options valued at between $19 million and $39 million, depending on the rate one assumes the company's stock price will appreciate over the next 10 years. The disclosure came in Sirius's proxy statement filed with the Securities and Exchange Commission on Tuesday.

While Clayton alone received 11.3 million options -- 21.1% of total options granted to employees -- other senior executives received a total of 12.2 million options last year. Like most of Clayton's options, the other executives' options were priced below the market price for the stock on the day they were granted; approximately 36% of the non-Clayton options vested last month, upon satisfaction of 2003 performance criteria set by the Sirius' board.

The size of these options grants, along with restricted stock awarded to Clayton and other executives, reflect both the executives' achievements in 2003 and lean years, compensationwise, before and after 2003, according to Sirius' compensation committee. ...