Sirius XM CEO gets pay hike, contract extension

LOS ANGELES, July 1 (Reuters) - Sirius XM Satellite Radio Inc (SIRI.O)on Wednesday said it extended the term of Chief Executive Mel Karmazin's employment contract, set to expire in November, through Dec. 31, 2012, and raised his salary.

In a filing with the Securities and Exchange Commission, Sirius XM said it amended the employment agreement to increase his base salary from $1.25 million to $1.5 million, beginning on Jan. 1, 2010.

It also provides Karmazin for the grant of an option to purchase 120 million shares at an exercise price of 43 cents a share.