Howard Stern Howard Stern

Howard Stern may have to take a significant pay cut, Sirius XM chief financial officer David Frear said, according to Reuters, at an investor conference in New York.

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"At the time of the merger we were in many long-term contracts," Frear said. "As they come up for renewal, we'll have the opportunity to get more favorable economic terms there."

While Frear is hopeful Stern will renew his contract — which ends Dec. 31 — with the satellite radio company, he acknowledged the shock jock may be considering other offers.

"He could decide that he doesn't want to get up that early in the morning. That he'd like to do a shorter show. That he'd like to do it somewhere else," he said. "The Internet, whether it's through iTunes or something else, is always a possibility."

Stern's $100 million a year contract isn't the only one that could be cut. Other commitments the two companies made before their merger included: $600 million to Major League Baseball, $108 million for NASCAR, $100 million for the National Hockey League, $55 million for Oprah Winfrey and $30 million for Martha Stewart.

"The marketing aspects of these alignments don't have the same kind of value components to them today that they did several years ago," Frear said, adding that he expects the contract renewals to come down some. "We go after each new negotiation as if it's the first time."