I have no problem with Frear selling shares to cover tax liabilities. Let me try to resolve between options, grants, and taxes and see where I mess up.

David has received grants factored to a significantly higher strike price than where the stock sits today. He would have to pay taxes on those grants treated as income. Fair enough, use stock to cover it.

You call them options which would be treated differently such that he would not excercise them unless the SP crosses his option price (has this been possible since 2005 when the stock started to tank?).

So which scenario are we talking here? If it’s options then I believe he has no excuse not to pick up new shares at the reduced price over what would seemingly appear to be worthless unexcercised options right now.

If he has grants, then by my calculations he has 851,879 remaining shares at a current stock price of 0.118 = $100,521 invested in Sirius. That is crap in my opionion. Karmazin is in it for a million right now (9M x 0.118). Also crap.

I am not clear what percentage of David’s salary was given as grants so that may possibly give ammo to your argument.

I just believe that if SiriusXM executives are commited to their company they should expose themselves to the outcome of their efforts the same way their shareholders have. They are the heads of this operation. If they don’t have the faith go work somewhere else or be a rank and file worker just pulling down an average wage living. I respect Rhyu for admitting he could not justify continuing to stay at Sirius in hopes of a potential promotion somewhere else. There are huge rewards and huge expectations made of these executives. To not see one single purchase since Mel’s August buy suggests nothing other than a belief this stock will either continue to tank or is headed for BK.

Watch that show Startup Junkies on MOJO? Talk about putting it all out there. These guys personally risk it all but know they can walk away loaded if they succeed. They are commited to success and back it up. Larger corporate execs lose this sizzle for some reason.

I am young and humble enough to get schooled if I am way off here. Thanks again Tyler. Go PATS/CELTS/ and now BRUINS wow!

Normally I try to stay on the sidelines, but I felt compelled to comment.

Let’s take David Frear for example.

He makes $525,000 a year for salary.

He has 830,790 shares of stock, most of which are options shares he obtained as part of his salary.

His latest “sale” was for tax purposes. He sold 110,351 shares @ $2.73 to cover the taxes on his option shares that vested. The tax liability was $301,258.

To expect a man who’s gross salary is $525,000 to pony up $301,000 in taxes is something that no financial advisor to advise. Thus the sale of enough shares to cover the tax.

Frear has options for nearly 1.5 million shares of stock. How much more stock makes sense for someone in his position with his salary?

I knew dozens upon dozens of paper millionaires durring the dot-com boom. Their wealth was all tied up in the company, and when the bubble burst, they had nothing.

I am sorry, but to expect Mr. Frear to be buying more shares when he already has well over a million in options shares would simply be something that no financial advisor would ever guide someone to do. Want to test it out? Call your financial advisor and run the situation by them.

I like that. “previously undisclosed”.

First of all this stock needs no cover. It lost investors money before the melt down and continues to. With that said, I am still a wary investor in this stock. I have many more shares now, will little equity. To clear things up a bit, It was Mel that took on $550M of New debt at the time of the Merger, while loaning shares of the company (our company), to Bond Holders of this debt. 260 Million shares to be precise. So that They, not anyone else, could Short the stock. He called it “Ugly”,….. and I have learn to call it “previously undisclosed”. This, along with all of the other merger related, renegotiated debt, that was required under “Change of Control” requirements, $700M Senior notes, now at 13% (16% yield) and the $400M that was 1.75% reset to 10% (still due Dec. 2009), and the New Debt, previously undisclosed, which set the common share price at $1.50, and then gave the Bond Holders control of the Stock Price. Who else did this if not Mel Karmazin? I am a believer in Mel’s management of the past and still think he can do the right thing. The right thing now is to understand that He Is Accountable for These Actions. Now he needs to find a way to take those “LENT SHARES” of the Market while refinancing other Convertible Bond Debt.

Now a more reasonable plan would be to pay their ENTIRE salary in options.. Now then you would convince me why they are not buying right now!