Sirius XM announced Wednesday that the contract of CEO Mel Karmazin’s employment has been extended through the end of 2012. Under the new deal, Sirius XM has escalated Karmazin's base salary to $1.5 million a year, from $1.2 million.

The new agreement also provided Mel Karmazin with options exercisable at 43 cents per share.

At Sirius XM Radio Inc's annual shareholder meeting Thursday, more than 150 shareholders in attendance approved a reverse stock split and an increase in shares.