Sirius XM Radio announced today that they are registering 148 million shares for use in stock incentive plans. Offerings such as this have happened each year. Until registered, these shares are not in the outstanding share count used in the calculation of market cap or the companies quarterly and annual reports. Once registered they do become part of that count. For clarity, it should be understood that reserved shares such as these are and were counted in the "fully diluted" share count.

In addition to the registration, Sirius XM announced that CEO Mel Karmazin has, in effect, donated his rights on options to 30 million shares. The options carried an exercise price of $4.72 per share. Of the 30 million shares, 24 million had been vested. Over the years, these options have been used in error many times in determining the take home pay of Mr. Karmazin. While some may look at this as a meaningless gesture given the current stock price, the move does have the effect of cleaning up the books of the reserve established, and does make the dilution of the employee incentive plans less than it would have been otherwise. In point of fact, the move shows a commitment to the employees of Sirius XM Radio.

From The Filing:

"Mr. Karmazin's choice to forfeit these options will allow us to more efficiently use the shares authorized under the Plan to meet the Plan’s purpose to attract, motivate and retain key employees."

"Mr. Karmazin did not receive any consideration in exchange for the forfeiture of these stock options."

As a result of these filings, the fully diluted share count was raised by 148 million shares, then lowered by 30 million shares. The NET impact was an addition of 118 million shares.

Position: Long Sirius XM Radio