- The document is a letter from the Chairman and CEO of EchoStar Communications Corporation inviting shareholders to attend EchoStar's 2007 Annual Meeting of Shareholders on May 8, 2007.
- It provides details on the location, time, and agenda items to be voted on at the meeting, including the election of 10 directors and the ratification of the appointment of KPMG LLP as the independent auditor.
- Shareholders are encouraged to vote by proxy whether attending the meeting or not to ensure their votes are counted, and they are thanked for their support and interest in EchoStar.
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dish network 2007 Notice and Proxy Statement
1. April 5, 2007
DEAR SHAREHOLDER:
It is a pleasure for me to extend to you an invitation to attend the 2007 Annual Meeting of Shareholders of EchoStar
Communications Corporation. The Annual Meeting will be held on Tuesday, May 8, 2007, at 12:00 noon, local
time, at EchoStar’s headquarters located at 9601 S. Meridian Blvd., Englewood, Colorado 80112.
The enclosed Notice of 2007 Annual Meeting of Shareholders and Proxy Statement describe the proposals to be
considered and voted on at the Annual Meeting. During the Annual Meeting, we also will review EchoStar’s
operations and other items of general interest regarding the corporation.
We hope that all shareholders will be able to attend the Annual Meeting. Whether or not you plan to attend the
Annual Meeting personally, it is important that you be represented. To ensure that your vote will be received and
counted, please promptly complete, date and return your proxy card in the enclosed return envelope.
On behalf of the Board of Directors and senior management, I would like to express our appreciation for your
support and interest in EchoStar. I look forward to seeing you at the Annual Meeting.
CHARLES W. ERGEN
Chairman and Chief Executive Officer
9601 S. Meridian Blvd. Englewood, Colorado 80112 Tel: (303) 723-1000 Fax: (303) 723-1999
3. NOTICE OF 2007 ANNUAL MEETING OF SHAREHOLDERS
TO THE SHAREHOLDERS OF ECHOSTAR COMMUNICATIONS CORPORATION:
The Annual Meeting of Shareholders of EchoStar Communications Corporation will be held on Tuesday, May 8,
2007, at 12:00 noon, local time, at our headquarters located at 9601 S. Meridian Blvd., Englewood, Colorado 80112,
to consider and vote upon:
1. The election of ten directors to our Board of Directors;
2. The ratification of the appointment of KPMG LLP as our independent registered public accounting
firm for the fiscal year ending December 31, 2007; and
3. Any other business that may properly come before the Annual Meeting or any adjournment or
postponement of the Annual Meeting.
You may vote on these matters in person or by proxy. Whether or not you plan to attend the Annual Meeting, we
ask that you vote by one of the following methods to ensure that your shares will be represented at the meeting in
accordance with your wishes:
Vote by telephone, or electronically through the Internet, by following the instructions included with
your proxy card; or
Vote by mail, by promptly completing and returning the enclosed proxy card in the enclosed addressed
stamped envelope.
Only shareholders of record at the close of business on March 23, 2007 are entitled to notice of, and to vote at, the
Annual Meeting or any adjournment of the meeting. We anticipate first mailing our proxy statement and proxy card
on or about April 5, 2007.
By Order of the Board of Directors
DAVID K. MOSKOWITZ
Executive Vice President, General Counsel,
Corporate Secretary and Director
April 5, 2007
9601 S. Meridian Blvd. Englewood, Colorado 80112 Tel: (303) 723-1000 Fax: (303) 723-1999
5. PROXY STATEMENT
OF
ECHOSTAR COMMUNICATIONS CORPORATION
GENERAL INFORMATION
This Proxy Statement and the accompanying proxy are being furnished to you in connection with the 2007 Annual Meeting
of Shareholders (the “Annual Meeting”) of EchoStar Communications Corporation (“EchoStar,” “we,” “us,” “our” or the
“Corporation”). The Annual Meeting will be held on Tuesday, May 8, 2007, at 12:00 noon, local time, at our headquarters
located at 9601 S. Meridian Blvd., Englewood, Colorado 80112.
This Proxy Statement is being sent or provided to holders of record at the close of business on March 23, 2007 of our
Class A Common Stock (the “Class A Shares”) and Class B Common Stock (the “Class B Shares”).
Your proxy is being solicited by our Board of Directors (the “Board” or “Board of Directors”). It may be revoked by
written notice given to our Secretary at our headquarters at any time before being voted. To vote by mail, please complete
the accompanying proxy card and return it to us as instructed in the proxy card. To vote using the telephone or
electronically through the Internet, please refer to the instructions on the accompanying proxy card. Votes submitted by
mail, telephone or electronically through the Internet must be received by 11:59 p.m., Eastern Time, on May 7, 2007.
Submitting your vote by mail, telephone or electronically through the Internet will not affect your right to vote in person, if
you choose to do so. Proxies that are properly delivered to us before the closing of the polls during the Annual Meeting and
not revoked will be voted for the proposals described in this Proxy Statement in accordance with the instructions set forth
on the proxy card. The Board is currently not aware of any matters proposed to be presented at the Annual Meeting other
than the election of directors and the ratification of KPMG LLP as our independent registered public accounting firm for
the fiscal year ending December 31, 2007. If any other matter is properly presented at the Annual Meeting, the persons
named in the accompanying proxy card will have discretionary authority to vote on that matter in accordance with their best
judgment. Your presence at the Annual Meeting does not of itself revoke your proxy.
Attendance at the Meeting
All of our shareholders of record at the close of business on March 23, 2007, or their duly appointed proxies, may attend
the Annual Meeting. Seating is limited, however, and admission to the Annual Meeting will be on a first-come, first-served
basis. Registration and seating will begin at 11:30 a.m., local time, and the Annual Meeting will begin at 12:00 noon, local
time. Each shareholder may be asked to present an admission ticket, which is attached to the accompanying proxy card,
together with a valid government issued photo identification confirming their identity as a shareholder of record, such as a
driver’s license or passport. Cameras, recording devices, and other electronic devices will not be permitted at the Annual
Meeting.
If your shares are held by a broker, bank, or other nominee (often referred to as holding in “street name”) and you desire to
attend the Annual Meeting, you will need to bring a legal proxy or a copy of a brokerage or bank statement reflecting your
share ownership as of the record date, March 23, 2007. All shareholders must check in at the registration desk at the
Annual Meeting.
Securities Entitled to Vote
Only shareholders of record at the close of business on March 23, 2007 are entitled to notice of the Annual Meeting. Such
shareholders may vote shares held by them at the close of business on March 23, 2007 at the Annual Meeting. At the close
of business on March 23, 2007, 207,712,069 Class A Shares and 238,435,208 Class B Shares were outstanding. Each of
the Class A Shares is entitled to one vote per share on each proposal to be considered by our shareholders. Each of the
Class B Shares is entitled to ten votes per share on each proposal to be considered by our shareholders.
1
6. Vote Required
In accordance with our Amended and Restated Articles of Incorporation (our “Articles of Incorporation”), the presence at
the Annual Meeting, in person or by proxy, of the holders of a majority of the total voting power of all classes of our voting
stock taken together shall constitute a quorum for the transaction of business at the Annual Meeting.
The affirmative vote of a plurality of the total votes cast for directors at the Annual Meeting is necessary to elect a director.
No cumulative voting is permitted. The affirmative vote of a majority of the voting power represented at the Annual
Meeting is required to approve the ratification of the appointment of KPMG LLP as our independent registered public
accounting firm.
The total number of votes cast “for” will be counted for purposes of determining whether sufficient affirmative votes have
been cast to elect each director and the ratification of the appointment of KPMG LLP as our independent registered public
accounting firm. Abstentions from voting on a proposal by a shareholder at the Annual Meeting, as well as broker
nonvotes, will be considered for purposes of determining the number of total votes present at the Annual Meeting.
Abstentions will have the same effect as votes “against” the ratification of the appointment of KPMG LLP as our
independent registered public accounting firm. However, abstentions will not be counted as “against” or “for” the election
of directors. Broker nonvotes will not be considered in determining the election of directors or the ratification of the
appointment of KPMG LLP as our independent registered public accounting firm.
Through his direct or indirect ownership of Class A Shares and Class B Shares, Charles W. Ergen, our Chairman of the
Board and Chief Executive Officer, possesses approximately 77% of our total voting power. Mr. Ergen has stated that he
will vote: (1) for the election of each of the nominee directors, and (2) for the ratification of the appointment of KPMG LLP
as our independent registered public accounting firm. Accordingly, the election of each of the director nominees and the
ratification of the appointment of KPMG LLP as our independent registered public accounting firm are assured
notwithstanding a contrary vote by any or all shareholders other than Mr. Ergen.
Householding
We have adopted a procedure approved by the Securities and Exchange Commission (“SEC”) called “householding.”
Under this procedure, service providers that deliver our communications to shareholders may deliver a single copy of our
Annual Report and Proxy Statement to multiple shareholders sharing the same address, unless one or more of these
shareholders notifies us that they wish to continue receiving individual copies. Shareholders who participate in
householding will continue to receive separate proxy cards. This householding procedure will reduce our printing costs and
postage fees.
We will deliver promptly upon written or oral request a separate copy of our Annual Report or Proxy Statement, as
applicable, to a shareholder at a shared address to which a single copy of the documents was delivered. Please notify our
transfer agent at the address provided below to receive a separate copy of our Annual Report or Proxy Statement.
If you are eligible for householding, but you and other shareholders with whom you share an address currently receive
multiple copies of our annual reports and/or proxy statements, or if you hold stock in more than one account, and in either
case you wish to receive only a single copy of our Annual Report or Proxy Statement for your household, please contact
our transfer agent, Computershare Investor Services, at 350 Indiana Street, Suite 800, Golden, Colorado 80401, telephone
number 303-262-0600.
Our Mailing Address
Our mailing address is 9601 S. Meridian Blvd., Englewood, Colorado 80112.
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7. PROPOSAL NO. 1 – ELECTION OF DIRECTORS
Nominees
Our shareholders will elect a board of ten directors at the Annual Meeting. Each of the directors is expected to hold office
until the next annual meeting of our shareholders or until his or her respective successor shall be duly elected and qualified.
The affirmative vote of a plurality of the total votes cast for directors is necessary to elect a director. This means that the
ten nominees who receive the most votes will be elected to the ten open directorships even if they get less than a majority of
the votes cast. Each nominee has consented to his or her nomination and has advised us that he or she intends to serve the
entire term if elected.
The nominees for director are as follows:
Name Age First Became Director Position with the Company
James DeFranco 54 1980 Director and Executive Vice President
Michael T. Dugan 58 2004 Director and Senior Advisor
Cantey Ergen 52 2001 Director and Employee
Charles W. Ergen 54 1980 Chairman of the Board of Directors and
Chief Executive Officer
Steven R. Goodbarn 49 2002 Director
Gary S. Howard 56 2005 Director
David K. Moskowitz 48 1998 Director, Executive Vice President, General
Counsel and Secretary
Tom A. Ortolf 56 2005 Director
C. Michael Schroeder 58 2003 Director
Carl E. Vogel 49 2005 Director, President and Vice Chairman
The following sets forth the business experience of each of the nominees over the last five years:
James DeFranco. Mr. DeFranco is one of our Executive Vice Presidents and has been one of our vice presidents and a
member of the Board since our formation. During the past five years he has held various executive officer and director
positions with our subsidiaries. Mr. DeFranco co-founded EchoStar with Charles W. Ergen and his wife Cantey Ergen in
1980.
Michael T. Dugan. Mr. Dugan is currently a senior advisor to us. Until October 2006, Mr. Dugan was our Chief
Technology Officer. Before being elected to the Board in 2004, he was our President and Chief Operating Officer. In that
capacity, Mr. Dugan had been responsible for, among other things, all operations except legal, finance and accounting at
EchoStar. Until April 2000, Mr. Dugan had been President of EchoStar Technologies Corporation. Previously he was the
Senior Vice President of the Consumer Products Division of EchoStar. Mr. Dugan has been employed with EchoStar since
1990. Mr. Dugan has served as a director of Citizens Communications Company since October 2006.
Cantey Ergen. Mrs. Ergen has served on the Board since May 2001 and has had a variety of operational responsibilities with
us over the past 27 years. Mrs. Ergen has served on the board of trustees of The Children’s Hospital of Denver since 2001 and
served on the board of trustees of The Children’s Hospital Foundation of Denver during 2000. Mrs. Ergen co-founded
EchoStar with her husband Charles W. Ergen and James DeFranco in 1980.
Charles W. Ergen. Mr. Ergen has been our Chairman of the Board and Chief Executive Officer since our formation.
During the past five years he has also held various executive officer and director positions with our subsidiaries. Mr. Ergen
co-founded EchoStar with his wife Cantey Ergen and James DeFranco in 1980.
Steven R. Goodbarn. Mr. Goodbarn joined the Board in December 2002 and is a member of our Executive Compensation
Committee, Nominating Committee, and Audit Committee, where he serves as our “audit committee financial expert.”
Since July 2002, Mr. Goodbarn has served as director and president of Secure64 Software Corporation, a company he co-
founded. Mr. Goodbarn was chief financial officer of Janus Capital Corporation from 1992 until late 2000. During that
time, he was a member of the executive committee and served on the board of directors of many Janus corporate and
investment entities. Until September 2003, Mr. Goodbarn also served as a director of Nighthawk Systems. Mr. Goodbarn
is a CPA and spent 12 years at Price Waterhouse prior to joining Janus.
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8. Gary S. Howard. Mr. Howard joined the Board in November 2005 and is a member of our Executive Compensation
Committee, Nominating Committee and Audit Committee. Mr. Howard served as Executive Vice President and Chief
Operating Officer of Liberty Media Corporation from July 1998 to February 2004 as well as serving on Liberty Media
Corporation’s Board of Directors from July 1998 until January 2005. Additionally, Mr. Howard held several executive
officer positions with companies affiliated with Liberty Media Corporation
David K. Moskowitz. Mr. Moskowitz is one of our Executive Vice Presidents and our Secretary and General Counsel. Mr.
Moskowitz joined us in March 1990. He was elected to the Board in 1998. Mr. Moskowitz is responsible for all of our
legal affairs and performs certain business functions for us and our subsidiaries.
Tom A. Ortolf. Mr. Ortolf joined the Board in May 2005 and is a member of our Executive Compensation Committee,
Nominating Committee, and Audit Committee. Mr. Ortolf has been the President of Colorado Meadowlark Corp., a
privately held investment management firm, for more then ten years. From 1988 until 1991, Mr. Ortolf served as our
President and Chief Operating Officer.
C. Michael Schroeder. Mr. Schroeder has served on the Board since November 2003 and is a member of our Executive
Compensation Committee, Nominating Committee, and Audit Committee. In 1981, Mr. Schroeder founded Consumer
Satellite Systems, Inc. (CSS), which he grew to encompass a 10 state distribution system operating in a region ranging from
Wisconsin to Florida. CSS served retailers selling satellite systems, televisions and a range of consumer electronics
products. Mr. Schroeder also founded a programming division that grew to serve over 400,000 subscribers.
Carl E. Vogel. Mr. Vogel has served on the Board since May 2005 and became a full-time employee in June 2005. Mr.
Vogel is currently our President and Vice Chairman. From 2001 until 2005, Mr. Vogel served as the President and CEO of
Charter Communications Inc., a publicly-traded company providing cable television and broadband services to
approximately six million customers. Prior to joining Charter, Mr. Vogel worked as an executive officer in various
capacities for the companies affiliated with Liberty Media Corporation. Mr. Vogel was one of our executive officers from
1994 until 1997, including serving as our President from 1995 until 1997. Mr. Vogel has served as a director of Shaw
Communications, Inc. since June 2006.
Charles W. Ergen, our Chairman and Chief Executive Officer, possesses approximately 77% of our total voting power.
Accordingly, if Mr. Ergen votes in favor of Proposal No. 1, approval of Proposal No. 1 is assured even if it receives a
negative vote from all shareholders other than Mr. Ergen. Mr. Ergen has indicated his intention to vote in favor of Proposal
No. 1.
The Board of Directors unanimously recommends a vote FOR the election of all of the nominees named herein (Item
No. 1 on the enclosed proxy card).
Board of Directors and Committees and Selection Process
Our Board held six meetings in 2006 and also took action by unanimous written consent on six occasions during the year.
Except for Mr. Dugan and Mrs. Ergen, each of our directors attended at least 75% of the aggregate of: (i) the total number
of meetings of the Board held during the period in which he or she was a director, and (ii) the total number of meetings held
by all committees of the Board on which he served.
Directors are elected annually and serve until their successors are duly elected and qualified. Officers serve at the
discretion of the Board.
We are a “controlled company” within the meaning of the NASDAQ Marketplace Rules because more than 50% of our
voting power is held by Charles W. Ergen, our Chairman and Chief Executive Officer. Please see “Equity Security
Ownership” below. Therefore, we are not subject to the NASDAQ listing requirements that would otherwise require us to
have: (i) a Board of Directors comprised of a majority of independent directors; (ii) compensation of our executive
officers determined by a majority of the independent directors or a compensation committee composed solely of
independent directors; and (iii) director nominees selected, or recommended for the Board’s selection, either by a majority
of the independent directors or a nominating committee composed solely of independent directors. Nevertheless, the
Corporation has created an Executive Compensation Committee (the “Compensation Committee”) and a Nominating
Committee, in addition to an Audit Committee, all of which are composed entirely of independent directors. We
established our Compensation and Audit Committees in October 1995 and our Nominating Committee in August 2005.
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9. The charters for our Compensation, Audit, and Nominating Committees are available free of charge on our website at
http://www.echostar.com. The function and authority of these committees are described below:
Compensation Committee. The Compensation Committee operates under a Compensation Committee Charter adopted by
the Board. The principal functions of the Compensation Committee are to the extent the Board deems necessary or
appropriate: (i) make and approve all option grants and other issuances of EchoStar’s equity securities to EchoStar’s
executive officers and Board members other than nonemployee directors; (ii) approve all other option grants and issuances
of EchoStar’s equity securities, and recommend that the full Board make and approve such grants and issuances; (iii)
establish in writing all performance goals for performance-based compensation that together with other compensation to
senior executive officers could exceed $1 million annually, other than standard Stock Incentive Plan options that may be
paid to EchoStar’s executive officers, and certify achievement of such goals prior to payment; and (iv) set the compensation
of the Chairman and Chief Executive Officer. The Compensation Committee held four meetings and took action by
unanimous written consent on five occasions during 2006. The current members of the Compensation Committee are Mr.
Goodbarn, Mr. Howard, Mr. Ortolf and Mr. Schroeder, with Mr. Goodbarn serving as Chairman of the Committee. The
Board has determined that each of these individuals meets the independence requirements of NASDAQ and applicable SEC
rules and regulations. The composition of the Compensation Committee is expected to remain the same following our
Annual Meeting.
Audit Committee. Our Board has established a standing Audit Committee in accordance with NASDAQ rules and Section
3(a)(58)(A) of the Securities Exchange Act of 1934. The Audit Committee operates under an Audit Committee Charter
adopted by the Board. The principal functions of the Audit Committee are to: (i) select the independent registered public
accounting firm and set their compensation; (ii) select the internal auditor; (iii) review and approve management’s plan for
engaging our independent registered public accounting firm during the year to perform non-audit services and consider
what effect these services will have on the independence of our independent registered public accounting firm; (iv) review
our annual financial statements and other financial reports that require approval by the Board; (v) oversee the integrity of
our financial statements, our systems of disclosure and internal controls, and our compliance with legal and regulatory
requirements; (vi) review the scope of our independent registered public accounting firm’s audit plans and the results of
their audits; and (vii) evaluate the performance of our internal audit function and independent registered public accounting
firm.
The Audit Committee held seven meetings and took action by unanimous written consent on two occasions during 2006.
The current members of the Audit Committee are Mr. Goodbarn, Mr. Howard, Mr. Ortolf and Mr. Schroeder, with Mr.
Ortolf serving as Chairman of the Committee. Each of these individuals meets the independence requirements of
NASDAQ and applicable SEC rules and regulations. The Board has determined that each member of our Audit Committee
is financially literate and that Mr. Goodbarn qualifies as an “audit committee financial expert” as defined by applicable
SEC rules and regulations. The composition of the Audit Committee is expected to remain the same following our Annual
Meeting, with Mr. Goodbarn continuing as the “audit committee financial expert.”
Nominating Committee. The Nominating Committee operates under a Nominating Committee Charter adopted by the
Board. The principal function of the Nominating Committee is to recommend independent director nominees for selection
by the Board. The Nominating Committee held two meetings during 2006. The current members of the Nominating
Committee are Mr. Goodbarn, Mr. Howard, Mr. Ortolf, and Mr. Schroeder, with Mr. Schroeder serving as Chairman of the
Committee. The Board has determined that each of these individuals meets the independence requirements of NASDAQ
and applicable SEC rules and regulations. The composition of the Nominating Committee is expected to remain the same
following our Annual Meeting.
The Nominating Committee will consider candidates suggested by its members, other directors, senior management and
shareholders as appropriate. No search firms or other advisors were retained to identify nominees during the past fiscal
year. The Nominating Committee has not adopted a written policy with respect to the consideration of candidates proposed
by security holders or with respect to nominating anyone to our Board other than nonemployee directors. Director
candidates, whether recommended by the Nominating Committee, other directors, senior management or shareholders are
currently considered by the Nominating Committee and the Board, as applicable, in light of the entirety of their credentials,
including but not limited to the following factors: (i) their reputation and character; (ii) their ability and willingness to
devote sufficient time to Board duties; (iii) their educational background; (iv) their business and professional achievements,
experience and industry background; (v) their independence from management under listing standards and the
Corporation’s governance guidelines; and (vi) the needs of the Board and the Corporation.
5
10. Other Information about our Board of Directors
We provide an informal process for shareholders to send communications to our Board. Shareholders who wish to contact
the Board or any of its members may do so by writing to EchoStar Communications Corporation, Attn: Board of Directors,
9601 S. Meridian Blvd., Englewood, Colorado 80112. At the direction of the Board of Directors, all mail received will be
opened and screened for security purposes. Correspondence directed to an individual Board member is referred to that
member. Correspondence not directed to a particular Board member is referred to our General Counsel, Mr. Moskowitz.
Although we do not have a policy with regard to Board members’ attendance at our annual meetings of shareholders, all of
our directors are encouraged to attend such meetings. All of our directors were in attendance at our 2006 Annual Meeting.
Equity Security Ownership
The following table sets forth, to the best of our knowledge, the beneficial ownership of our voting securities as of the close
of business on March 23, 2007 by: (i) each person known by us to be the beneficial owner of more than five percent of any
class of our voting securities; (ii) each of our directors; (iii) our chief executive officer, chief financial officers and three
other most highly compensated persons acting as one of our executive officers on December 31, 2006 (collectively, the
“Named Executive Officers”); and (iv) all of our directors and executive officers as a group. Unless otherwise indicated,
each person listed in the following table (alone or with family members) has sole voting and dispositive power over the
shares listed opposite such person’s name.
Amount and
Nature of
Beneficial Percentage
Name (1) Ownership of Class
Class A Common Stock (2):
Charles W. Ergen (3), (4)........................................................................................... 200,020,847 49.1%
Cantey Ergen (5)........................................................................................................ 199,300,847 49.0%
David K. Moskowitz (6)............................................................................................ 40,436,696 16.3%
T. Rowe Price Associates, Inc. (7)............................................................................. 21,182,074 10.1%
Dodge & Cox (8)....................................................................................................... 14,654,084 7.1%
Barclays Global Investors, NA. (9)............................................................................ 13,997,442 6.7%
Fairholme Capital Management, L.L.C. (10)............................................................. 13,713,642 6.6%
Harris Associates L.P. (11)........................................................................................ 10,403,450 5.0%
FMR Corp. (12)......................................................................................................... 10,356,175 5.0%
James DeFranco (13)................................................................................................. 6,193,348 3.0%
Michael T. Dugan (14)............................................................................................... 1,038,020 *
David J. Rayner (15).................................................................................................. 200,152 *
Carl E. Vogel (16)...................................................................................................... 160,312 *
Tom A. Ortolf (17)..................................................................................................... 115,200 *
O. Nolan Daines (18)................................................................................................. 100,429 *
C. Michael Schroeder (19)......................................................................................... 72,600 *
Steven R. Goodbarn (20)........................................................................................... 75,000 *
Gary S. Howard (21).................................................................................................. 55,100 *
Bernard L. Han.......................................................................................................... - *
All Directors and Executive Officers as a Group (19 persons) (22).......................... 250,208,847 60.8%
Class B Common Stock:
Charles W. Ergen....................................................................................................... 198,805,449 83.4%
Cantey Ergen.............................................................................................................. 198,805,449 83.4%
Trusts (23).................................................................................................................. 39,629,759 16.6%
All Directors and Executive Officers as a Group (19 persons) (22).......................... 238,435,208 100.0%
* Less than 1%.
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11. (1) Except as otherwise noted below, the address of each such person is 9601 S. Meridian Blvd., Englewood, Colorado
80112. As of the close of business on March 23, 2007, there were 207,712,069 outstanding shares of Class A
Common Stock and 238,435,208 shares of Class B Common Stock.
(2) The following table sets forth, to the best knowledge of the Corporation, the actual ownership of the Corporation’s
Class A Common Stock (including options exercisable within 60 Days) as of the close of business on March 23,
2007 by: (i) each person known by the Corporation to be the beneficial owner of more than five percent of any class
of the Corporation’s voting shares; (ii) each director or director nominee of the Corporation; (iii) each Named
Executive Officer; and (iv) all directors and executive officers as a group:
Amount and
Nature of
Beneficial Percentage
Name (1) Ownership of Class
Class A Common Stock:
T. Rowe Price Associates, Inc.................................................................................... 18,999,864 9.1%
Dodge & Cox............................................................................................................. 14,654,084 7.1%
Barclays Global Investors, NA.................................................................................. 13,997,442 6.7%
Fairholme Capital Management, L.L.C...................................................................... 13,713,642 6.6%
Harris Associates L.P................................................................................................. 10,403,450 5.0%
FMR Corp.................................................................................................................. 10,356,175 5.0%
James DeFranco......................................................................................................... 6,193,348 3.0%
Charles W. Ergen....................................................................................................... 1,215,398 *
Michael T. Dugan...................................................................................................... 1,038,020 *
David K. Moskowitz.................................................................................................. 806,937 *
Cantey Ergen.............................................................................................................. 495,398 *
David J. Rayner.......................................................................................................... 200,152 *
Carl E. Vogel............................................................................................................. 160,312 *
Tom A. Ortolf............................................................................................................ 115,200 *
O. Nolan Daines......................................................................................................... 100,429 *
C. Michael Schroeder................................................................................................. 72,600 *
Steven R. Goodbarn................................................................................................... 75,000 *
Gary S. Howard......................................................................................................... 55,100 *
Bernard L. Han.......................................................................................................... - *
All Directors and Executive Officers as a Group (19 persons).................................. 11,773,639 5.5%
* Less than 1%.
(3) Mr. Ergen is deemed to own beneficially all of the Class A Shares owned by his spouse, Mrs. Ergen. Mr. Ergen’s
beneficial ownership includes: (i) 98,652 Class A Shares; (ii) 18,413 Class A Shares held in EchoStar’s 401(k)
Employee Savings Plan (the “401(k) Plan”); (iii) the right to acquire 720,000 Class A Shares within 60 days upon the
exercise of employee stock options; (iv) 235 Class A Shares held by Mrs. Ergen; (v) 923 Class A Shares held in the
401(k) Plan held by Mrs. Ergen; (vi) 27,175 Class A Shares held as custodian for his children; (vii) 350,000 Class A
Shares held as a trustee; and (viii) 198,805,449 Class A Shares issuable upon conversion of Mr. Ergen’s Class B
Shares. Mr. Ergen’s beneficial ownership of Class A Shares excludes 39,629,759 Class A Shares issuable upon
conversion of Class B Shares held by certain trusts established by Mr. Ergen for the benefit of his family.
(4) The percentage of total voting power held by Mr. Ergen is approximately 77% after giving effect to the exercise of
Mr. Ergen’s options exercisable within 60 days.
(5) Mrs. Ergen beneficially owns all of the Class A Shares owned by her spouse, Mr. Ergen, except for Mr. Ergen’s right
to acquire 720,000 Class A Shares within 60 days upon the exercise of employee stock options.
(6) Mr. Moskowitz’s beneficial ownership includes: (i) 124,854 Class A Shares; (ii) 17,605 Class A Shares held in the
401(k) Plan; (iii) the right to acquire 620,000 Class A Shares within 60 days upon the exercise of employee stock
options; (iv) 1,328 Class A Shares held as custodian for his minor children; (v) 8,184 Class A Shares held as trustee
for Mr. Ergen’s children; (vi) 32,984 Class A Shares held by a charitable foundation for which Mr. Moskowitz is a
member of the Board of Directors; (vii) 1,982 Class A Shares held in the employee stock purchase plan; and (viii)
39,629,759 Class A Shares issuable upon conversion of the Class B Shares held by certain trusts established by
Mr. Ergen for the benefit of Mr. Ergen’s family for which Mr. Moskowitz is trustee.
7
12. (7) Based solely upon a Schedule 13G filed on February 14, 2007. The address of T. Rowe Price Associates, Inc. is 100
E. Pratt Street, Baltimore, Maryland 21202.
(8) Based solely upon a Schedule 13G filed on February 8, 2007. The address of Dodge & Cox is 555 California Street,
40th Floor, San Francisco, California, 94104.
(9) Based solely upon a Schedule 13G filed on January 9, 2007. The address of Barclay Global Investors, NA. is 45
Fremont Street, San Francisco, California, 94105.
(10) Based solely upon a Schedule 13G filed on February 14, 2007. The address of Fairholme Capital Management,
L.L.C. is 1001 Brickell Bay Drive, Suite 3112, Miami, Florida, 33131.
(11) Based solely upon a Schedule 13G filed on February 14, 2007. The address of Harris Associates L.P. is Two North
LaSalle Street, Suite 500, Chicago, Illinois, 60602.
(12) Based solely upon a Schedule 13G filed on February 14, 2007. The address of FMR Corp. is 82 Devonshire Street,
Boston, Massachusetts, 02109.
(13) Mr. DeFranco’s beneficial ownership includes: (i) 3,762,752 Class A Shares; (ii) 18,413 Class A Shares held in the
401(k) Plan; (iii) the right to acquire 104,000 Class A Shares within 60 days upon the exercise of employee stock
options; (iv) 50,000 Class A Shares held as custodian for his minor children; (v) 8,183 Class A Shares held in the
names of his children; and (vi) 2,250,000 Class A Shares controlled by Mr. DeFranco as general partner of a
partnership.
(14) Mr. Dugan’s beneficial ownership includes: (i) 430 Class A Shares; (ii) 2,924 Class A Shares held in the 401(k) Plan;
and (iii) the right to acquire 1,034,666 Class A Shares within 60 days upon the exercise of employee stock options.
(15) Mr. Rayner’s beneficial ownership includes: (i) 5 Class A Shares; (ii) 147 Class A Shares held in the 401(k) Plan;
and (iii) the right to acquire 200,000 Class A Shares within 60 days upon the exercise of employee stock options.
(16) Mr. Vogel’s beneficial ownership includes: (i) 20,165 Class A Shares; (ii) 147 Class A Shares held in the 401(k)
Plan; and (iii) the right to acquire 140,000 Class A Shares within 60 days upon the exercise of employee stock
options;
(17) Mr. Ortolf’s beneficial ownership includes: (i) the right to acquire 55,000 Class A Shares within 60 days upon the
exercise of nonemployee director stock options; (ii) 200 Class A Shares held in the name of one of his children; and
(iii) 60,000 Class A Shares held by a partnership of which Mr. Ortolf is a partner.
(18) Mr. Daines’ beneficial ownership includes: (i) 15 Class A Shares; (ii) 414 Class A Shares held in the 401(k) Plan;
and (iii) the right to acquire 100,000 Class A Shares within 60 days upon the exercise of employee stock options.
(19) Mr. Schroeder’s beneficial ownership includes: (i) 7,600 Class A Shares; and (ii) the right to acquire 65,000 Class A
Shares within 60 days upon the exercise of nonemployee director stock options.
(20) Mr. Goodbarn’s beneficial ownership includes: (i) 5,000 Class A Shares; and (ii) the right to acquire 70,000 Class A
Shares within 60 days upon the exercise of nonemployee director stock options.
(21) Mr. Howard’s beneficial ownership includes: (i) 100 Class A Shares owned by his spouse; and (ii) the right to
acquire 55,000 Class A Shares within 60 days upon the exercise of nonemployee director stock options.
(22) Includes: (i) 4,201,338 Class A Shares; (ii) 87,405 Class A Shares held in the 401(k) Plan; (iii) the right to acquire
4,682,334 Class A Shares within 60 days upon the exercise of employee stock options; (iv) 2,310,000 Class A Shares
held in a partnership; (v) 238,435,208 Class A Shares issuable upon conversion of Class B Shares; (vi) 451,570 Class
A Shares held in the name of, or in trust for, children and other family members; (vii) 32,984 Class A Shares held by
a charitable foundation for which Mr. Moskowitz is a member of its board of directors; (viii) 100 Class A Shares held
by a spouse; and (ix) 7,908 Class A Shares held in the employee stock purchase plan. Class A and Class B Common
Stock beneficially owned by both Mr. and Mrs. Ergen is only included once in calculating the aggregate number of
shares owned by directors and executive officers as a group.
(23) Held by certain trusts established by Mr. Ergen for the benefit of Mr. Ergen’s family of which Mr. Moskowitz is
trustee.
8
13. Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) requires our directors, officers and holders of
more than 10% of our common stock to file reports with the SEC regarding their ownership and changes in ownership of
our equity securities. We believe that during the 2006 fiscal year, our directors, officers and 10% shareholders complied
with all Section 16(a) filing requirements, with the exception of the following inadvertent late reports: Mr. and Mrs. Ergen
filed one late Form 4 filing; Mr. Daines filed one late Form 4 filing; Mr. DeFranco filed one late Form 4 filing; Mr. Dugan
filed one late Form 4 filing; Mr. Mark Jackson, President of one of our subsidiaries, EchoStar Technologies Corporation,
filed one late Form 4 filing; Mr. Michael Kelly, one of our Executive Vice Presidents, filed one late Form 4 filing; Mr.
Jason Kiser, our Treasurer, filed one late Form 4 filing; Ms. Jody F. Martin, a former Senior Vice President, filed one late
Form 4 Filing; Mr. Moskowitz filed one late Form 4 filing; Mr. Rayner filed one late Form 4 filing; Mr. Steven Schaver,
President of one of our subsidiaries, EchoStar International Corporation, filed one late Form 4 filing; Mr. Robert A.
Strickland, our former Chief Information Officer, filed one late Form 4 filing; Mr. Paul Orban, our Senior Vice President
and Corporate Controller, filed one late form 4 filing; and Mr. Vogel filed two late Form 4 filings. Each late Form 4
reported above related to a single late transaction or a single series of related transactions. Except for one late Form 4 for
Mr. Vogel, each late Form 4 listed above was the result of the timing of a stock award of 125 shares or less issued
following achievement of a corporate goal pursuant to a broad-based incentive plan. In making these statements, we have
relied upon examination of copies of Forms 3, 4 and 5 provided to us and the written representations of our directors and
officers.
COMPENSATION DISCUSSION AND ANALYSIS
General Philosophy
The objective of EchoStar’s compensation policy with respect to our executive officers is to offer compensation packages
to attract, retain and motivate EchoStar’s executive officers over the long-term. Since 1996, certain aspects of executive
compensation have been reviewed by the Compensation Committee of our Board of Directors. The Compensation
Committee acts pursuant to a charter that has been adopted by our Board of Directors and which is reviewed annually by
the members of the Compensation Committee.
Executive Compensation Process
The Compensation Committee sets the total compensation of Mr. Ergen, our Chairman and Chief Executive Officer, and
the Board sets the base compensation of the other executive officers. The Compensation Committee makes and approves
grants of options and other equity-based compensation to EchoStar’s executive officers, and establishes in writing
performance goals for any performance-based compensation that together with other compensation to any executive officer
could exceed $1 million annually. The Compensation Committee also certifies achievement of those performance goals
prior to payment of performance-based compensation. In setting total compensation for Mr. Ergen and the other executive
officers of the Company, the Compensation Committee and the Board review an internally-prepared benchmarking survey
comparing the executive compensation of EchoStar’s top five highest paid executives with the executive compensation for
ten other comparable companies. Those comparable companies include companies within the telecommunications industry
with market capitalizations comparable to EchoStar and that generally recruit individuals to fill executive positions who are
similar in skills and background to those individuals that EchoStar recruits. Other factors considered by the Compensation
Committee and the Board include their perception of the individual’s performance, the individual’s success in achieving
EchoStar and individual goals, equity awards previously granted to the individual and planned changes in responsibilities.
The Compensation Committee and the Board also consider an individual’s extraordinary efforts resulting in tangible
increases in corporate, division or department success when setting base salaries and annual bonuses.
Executive Compensation Components
The primary components of EchoStar’s executive compensation program are base cash salary, conditional and/or
performance-based cash bonuses and long-term equity incentive compensation in the form of stock options and restricted
stock units offered under our Stock Incentive Plans. EchoStar does not require that a certain percentage of an executive
salary be provided in one form versus another. Each element of our executive compensation and the rationale for including
each element in our executive compensation is set forth below.
9
14. Base Salaries
Salary is included in our executive compensation package because we believe that it is appropriate that some portion of the
compensation paid to our executives be provided in a form that is fixed and liquid occurring over regular intervals.
Generally, for the reasons discussed in the Incentive Compensation section below, we weight overall compensation towards
equity components as opposed to base salaries. The Compensation Committee and the Board are free to set salary at any
level deemed appropriate. Increases or decreases in base salary on a year-over-year basis are dependent on either the
Compensation Committee’s or the Board’s respective assessment of EchoStar, the applicable business unit and individual
performance, as stated above.
Annual base salaries paid to EchoStar’s executive officers have historically been at levels below those generally paid to
executive officers with comparable experience and responsibilities in the telecommunications industry or other similarly-
sized companies. Because of these relatively low levels of compensation, EchoStar may experience difficulty in attracting
and retaining executives at the highest performance levels.
The Compensation Committee believes that the compensation paid to Mr. Ergen has generally been at a level that is below
amounts paid to chief executive officers at other companies of similar size and in comparable industries. Mr. Ergen’s base
salary for each of fiscal 2006, 2005 and 2004 was $550,000, $411,538 and $308,846, respectively. Since 1996, changes in
Mr. Ergen’s base salary have been set by the Compensation Committee.
Incentive Compensation
EchoStar believes that executive officers will be better able to contribute to EchoStar’s long-term success and help build
incremental shareholder value if they have a stake in that future success and value. This stake focuses the executive
officers’ attention on managing EchoStar as owners with equity positions in EchoStar and aligns their interests with the
long-term interests of EchoStar’s shareholders. Equity awards therefore represent an important and significant component
of EchoStar’s compensation program for executive officers. EchoStar attempts to create general incentives with its
standard stock option grants and conditional incentives through special performance-based conditional awards that may
include payouts in cash or equity.
General Equity Incentives. Standard awards under EchoStar’s Stock Incentive Plans generally include stock options and
are based on a review of the individual employee’s performance, years of service, position and level of responsibility with
EchoStar, long-term potential contribution to EchoStar and the number of options and terms of any other awards previously
granted to the employee. However, the number of options to be granted at any one time is not based on any objective
criteria. EchoStar does not assign specific weights to these factors, although the employee’s position and a subjective
evaluation of his performance are considered most important. To encourage executive officers to remain in EchoStar’s
employ, options granted under EchoStar’s Stock Incentive Plans generally vest at the rate of 20% per year and have
exercise prices not less than the fair market value of EchoStar’s Class A Common Stock on the date of grant. EchoStar’s
standard form of option agreement given to executive officers includes acceleration of vesting upon a change of control of
EchoStar for those executive officers that do not continue with EchoStar or the surviving entity, as applicable.
Performance-Based Conditional Equity Incentives. In February 1999, EchoStar adopted a long-term incentive plan (the
“1999 LTIP”) within the terms of EchoStar’s 1995 Stock Incentive Plan. The 1999 LTIP provided key employees with
stock options that may not be exercised until EchoStar achieves certain long-term goals. These performance goals are the
same for all key employees granted options pursuant to the 1999 LTIP. In order for these stock options to be exercised,
EchoStar must achieve a certain performance goal within the ten-year term covered by the 1999 LTIP. The performance
goals have not been achieved as of the date of this Proxy Statement, and we cannot currently predict if those goals will be
achieved or if the long-term incentive plan options will become exercisable. Given the competitive nature of our business,
among other reasons, it may be difficult for us to achieve the specified long-term performance goal of the 1999 LTIP. We
do not anticipate achieving the performance goal of the 1999 LTIP during 2007.
10
15. During January 2005, EchoStar adopted another long-term, performance-based stock incentive plan (the “2005 LTIP”)
within the terms of EchoStar’s 1999 Stock Incentive Plan. The purpose of the 2005 LTIP is to promote EchoStar’s interests
and the interests of its shareholders by providing key employees with financial rewards through equity participation upon
achievement of specified long-term business objectives. The employees eligible to participate in the 2005 LTIP include
EchoStar’s executive officers, vice presidents, directors and certain other key employees designated by the Compensation
Committee. Awards under the 2005 LTIP consist of a one-time grant of: (i) an option to acquire a specified number of
shares priced at the market value as of the last day of the calendar quarter in which the option was granted; (ii) rights to
acquire for no additional consideration a specified smaller number of shares of EchoStar’s Class A Shares; or (iii) a
corresponding combination of a lesser number of option shares and such rights to acquire EchoStar’s Class A Shares. The
options and rights vest at a varying rate over a seven-year period; provided, however, that none of the options or rights vest
if EchoStar fails to achieve the specified long-term performance goal. In order for stock options and restricted stock awards
to be earned, EchoStar must achieve a certain performance goal within the ten-year term covered by the 2005 LTIP. The
performance goal has not been achieved as of the date of this Proxy Statement. Similar to the 1999 LTIP, EchoStar cannot
currently predict if this goal will be achieved or if the 2005 LTIP options or restricted stock units will become exercisable.
Given the competitive nature of our business, among other reasons, it may be difficult for us to achieve the specified long-
term performance goal of the 2005 LTIP. We do not anticipate achieving the performance goal of the 2005 LTIP during
2007.
Practices Regarding the Grant of Equity Incentives. Stock options and restricted stock are generally awarded as of the
last day of each calendar quarter and have exercise prices, as applicable, of not less than the fair market value of EchoStar’s
Class A Common Stock on the date of grant.
Performance-Based Conditional Cash Incentives. During January 2006, we established a 2006 Cash Incentive Plan for
key employees to provide cash awards tied to achievement of specified 2006 business goals. During March 2006, the
Compensation Committee expanded participation in the 2006 Cash Incentive Plan to include Mr. Ergen and other senior
executives. The maximum amount payable to any participant under the 2006 Cash Incentive Plan upon satisfaction of all
applicable business goals and other criteria is equal to or less than each participant’s annual base salary. Since the
performance goals of the 2006 Cash Incentive Plan were partially achieved during 2006, payouts were made for those goals
that were obtained. EchoStar has established a similar plan for 2007.
401(k) Plan
We have adopted a defined-contribution tax-qualified 401(k) Plan. Our executives participate in our 401(k) Plan on the
same terms as our other employees. We maintain our 401(k) Plan for our employees, including our executives, because we
wish to encourage our employees to save some percentage of their cash compensation for their eventual retirement. Our
employees become eligible for participation in the 401(k) Plan upon completing six months of service with us and reaching
age 19. 401(k) Plan participants may contribute up to 50% of their compensation in each contribution period, subject to the
maximum deductible limit provided by the Internal Revenue Code. We may make a 50% matching employer contribution
up to a maximum of $1,000 per participant per calendar year. We may also make an annual discretionary profit sharing or
employer stock contribution to the 401(k) Plan with the approval of the Compensation Committee and the Board.
401(k) Plan participants are immediately vested in their voluntary contributions and earnings on voluntary contributions.
Our employer contributions to 401(k) Plan participants’ accounts vest 20% per year commencing one year from the
employee’s date of employment.
Benefits, Perquisites, Post-Termination Compensation and Other Compensation
Our executive officers participate in EchoStar’s benefit plans on the same terms as other employees. These plans include
medical, vision, and dental insurance, life insurance, and our employee stock purchase plan. We also offer our executives,
as well as our other employees, discounts on EchoStar services. EchoStar believes that it is important that our employees
use the services that we offer. Relocation benefits may also be reimbursed, but are individually negotiated when they
occur. We also permit members of our executive team to use our corporate aircraft for personal use. As reflected in the
Summary Compensation Table, the cost to EchoStar of those corporate aircraft benefits aggregated $890,197 in 2006 for
the named executive officers. EchoStar also pays for annual tax preparation costs for certain executive officers.
11
16. We do not have any plans in place to provide severance benefits to employees. However, certain stock options and
restricted stock units granted to our executive officers are subject to accelerated vesting on change of control, as described
above.
Deductibility of Compensation
Section 162(m) of the U.S. Internal Revenue Code places a limit on the tax deduction for compensation in excess of $1
million paid to certain “covered employees” of a publicly held corporation (generally, the corporation’s chief executive
officer and its next four most highly compensated executive officers in the year that the compensation is paid). This
limitation applies only to compensation which is not considered performance-based under the Section 162(m) rules. The
Compensation Committee conducts an ongoing review of EchoStar’s compensation practices for purposes of obtaining the
maximum continued deductibility of compensation paid consistent with EchoStar’s existing commitments and ongoing
competitive needs. However, nondeductible compensation in excess of this limitation may be paid.
EXECUTIVE COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
The Compensation Committee is appointed by the Board of Directors of EchoStar Communications Corporation to
discharge certain of the Board’s responsibilities relating to compensation of EchoStar’s executive officers.
The Compensation Committee, to the extent the Board deems necessary or appropriate, will:
Make and approve all option grants and other issuances of EchoStar’s equity securities to EchoStar’s
executive officers and Board members other than nonemployee directors;
Approve all other option grants and issuances of EchoStar’s equity securities, and recommend that the full
Board make and approve such grants and issuances;
Establish in writing all performance goals for performance-based compensation that together with other
compensation to senior executive officers could exceed $1 million annually, other than standard Stock
Incentive Plan options that may be paid to EchoStar’s executive officers, and certify achievement of such
goals prior to payment; and
Set the compensation of the Chairman and Chief Executive Officer.
Based on the review of the Compensation Discussion and Analysis and discussions with management, and subject to the
limitations on the role and responsibilities of the Compensation Committee referred to above, we recommended to
EchoStar’s management that the Compensation Discussion and Analysis be included in the Company’s proxy statement.
Respectfully submitted,
The EchoStar Executive Compensation Committee
Steven R. Goodbarn (Chairman)
Gary S. Howard
Tom A. Ortolf
C. Michael Schroeder
The report of the Compensation Committee and the information contained therein shall not be deemed to be “solicited
material” or “filed” or incorporated by reference in any filing we make under the Securities Act or under the Exchange Act,
irrespective of any general statement incorporating by reference this Proxy Statement into any such filing, or subject to the
liabilities of Section 18 of the Exchange Act, except to the extent that we specifically incorporate this information by
reference into a document we file under the Securities Act or the Exchange Act.
12
17. EXECUTIVE COMPENSATION AND OTHER INFORMATION
Summary Compensation Table
Our executive officers are compensated by certain of our subsidiaries. The following table sets forth the cash and noncash
compensation for the fiscal years ended December 31, 2006, 2005 and 2004 for the Named Executive Officers.
Change in
Pension Value
and
Nonqualified
Non-Equity Deferred
Stock Option Incentive Plan Compensation All Other
Salary Bonus (1) Awards (2) Awards (3) Compensation Earnings Compensation Total
Name and Principal Position Year ($) ($) ($) ($) (4) ($) ($) (5) ($) ($)
Charles W. Ergen 2006 $550,000 $ - $ - $ 1,412,882 $ - $ - $ 858,171 $ 2,821,053
Chairman and Chief 2005 411,538 - - - - - 512,476 924,014
Executive Officer 2004 308,846 - - - - - 231,948 540,794
Carl E. Vogel (6) 2006 $383,079 $ - $ 686,100 $ 1,574,519 $ 133,000 $ - $ 51,729 $ 2,828,427
President, Vice Chairman 2005 140,769 - - - - - - 140,769
and Director 2004 - - - - - - - -
David K. Moskowitz 2006 $350,772 $ - $ - $ 1,328,181 $ 123,000 $ - $ 30,634 $ 1,832,587
Executive Vice President, 2005 293,846 - - - - - 5,000 298,846
Director, General Counsel 2004 258,850 150,000 - - - - 6,000 414,850
and Secretary
David J. Rayner (7) 2006 $300,000 $ - $ - $ 1,206,209 $ 128,000 $ - $ 4,291 $ 1,638,500
Executive Vice President, 2005 294,230 - - - - - - 294,230
Installation and Service 2004 - - - - - - - -
Network
O. Nolan Daines 2006 $266,539 $ - $ - $ 1,191,198 $ 153,000 $ - $ 4,871 $ 1,615,608
Executive Vice President 2005 275,000 - - - - - 4,000 $ 279,000
Strategic Initiatives 2004 225,000 - - - - - 5,000 $ 230,000
Bernard L. Han (7) 2006 $ 88,077 $ - $ - $ 203,248 $ 33,250 $ - $ - $ 324,575
Executive Vice President 2005 - - - - - - - -
and Chief Financial Officer 2004 - - - - - - - -
(1) A portion of the bonuses included in each year were earned in that year, but not paid until the following year.
(2) The amounts reported in the “Stock Awards” column reflect the dollar amount of expense recognized for financial
statement reporting purposes for the fiscal year ended December 31, 2006, in accordance with Statement of Financial
Accounting Standards No. 123(R), Share-Based Payment (“SFAS 123R”). Assumptions used in the calculation of
these amounts are included in Note 3 to the Company’s audited financial statements for the fiscal year ended
December 31, 2006, included in the Company’s Annual Report on Form 10-K/A filed with the Securities and
Exchange Commission on March 6, 2007.
(3) The amounts reported in the “Option Awards” column reflect the dollar amount of expense recognized for financial
statement reporting purposes for the fiscal year ended December 31, 2006, in accordance with SFAS 123R.
Assumptions used in the calculation of these amounts are included in Note 3 to the Company’s audited financial
statements for the fiscal year ended December 31, 2006, included in the Company’s Annual Report on Form 10-K/A
filed with the Securities and Exchange Commission on March 6, 2007.
(4) “Non-Equity Incentive Plan Compensation” represents amounts earned pursuant to the 2006 Cash Incentive Plan that
will be paid during 2007. Mr. Ergen declined to accept any distributions he was otherwise entitled to receive
pursuant to the 2006 Cash Incentive Plan.
13
18. (5) “All Other Compensation” for all of the Named Executive Officers includes amounts contributed pursuant to our
401(k) matching program and our profit sharing program. Mr. Ergen’s “All Other Compensation” also includes tax
preparation payments in each year. In addition, with respect to Mr. Ergen, Mr. Vogel and Mr. Moskowitz, “All
Other Compensation” includes each Executive Officer’s personal use of corporate aircraft for the following amounts:
Mr. Ergen Mr. Vogel Mr. Moskowitz
Personal use 2006 $ 821,771 $ 47,438 $ 20,988
of company 2005 485,256 - -
aircraft 2004 205,428 - -
We calculated the value of each Executive Officer’s personal use of corporate aircraft based upon the incremental
cost of such usage to the Corporation.
(6) Mr. Vogel became an employee of the Corporation on June 30, 2005.
(7) Mr. Rayner served as Chief Financial Officer before Mr. Han joined the Corporation in that capacity on September
28, 2006.
Grant of Plan-Based Awards for 2006
All Other All Other
Estimated Future Payouts Under
Stock Option
Non-Equity Incentive Plan Estimated Future Payouts Under
Awards: Awards:
Awards Equity Incentive Plan Awards
Exercise
Number of Number of or Base Grant Date
Date of Shares of Securities Price of Fair Value
Compensation Stock or Underlying Option of Stock and
Grant Committee Threshold Target Maximum Threshold Target (1) Maximum Units Options Awards Option
Name Date Approval ($) ($) ($) (#) (#) (#) (#) (#) ($/sh) Awards (2)
Charles W. Ergen 3/7/2006 2/28/06 $ - $ - $ - - - - 125 - $ - $ -
3/8/2006 2/28/06 $ - $ - $ - - - - 147 - $ - $ -
Carl E. Vogel 3/7/2006 2/28/06 $ - $ - $ - - - - 5 - $ - $ -
3/8/2006 2/28/06 $ - $ - $ - - - - 147 - $ - $ -
10/5/2006 10/5/06 $ - $ - $ - - 300,000 - - 150,000 $ 32.74 $ 6,390,870
10/5/2006 10/5/06 $ - $ - $ - - - - 50,000 - $ - $ 1,658,000
David K. Moskowitz 3/7/2006 2/28/06 $ - $ - $ - - - - 80 - $ - $ -
3/8/2006 2/28/06 $ - $ - $ - - - - 147 - $ - $ -
David J. Rayner 3/7/2006 2/28/06 $ - $ - $ - - - - 5 - $ - $ -
3/8/2006 2/28/06 $ - $ - $ - - - - 147
9/30/2006 9/26/06 $ - $ - $ - - 60,000 - - - $ - $ 1,964,400
O. Nolan Daines 3/7/2006 2/28/06 $ - $ - $ - - - - 15 - $ - $ -
3/8/2006 2/28/06 $ - $ - $ - - - - 147 - $ - $ -
Bernard L. Han 9/30/2006 9/26/06 $ - $ - $ - - 30,000 - - - $ - $ 982,200
9/30/2006 9/26/06 $ - $ - $ - - 90,000 - - 350,000 $ 32.74 $ 5,432,630
(1) Represents the amount of stock and/or option awards that will become exercisable upon achievement of specified
long-term business objectives, as discussed in “Compensation Discussion and Analysis” above.
(2) Represents the total SFAS 123R fair value of the grant.
14
19. Outstanding Equity Awards at December 31, 2006
Option Awards Stock Awards
Equity
Incentive
Equity Plan
Incentive Awards:
Equity Plan Market or
Incentive Awards: Payout
Plan Number of Value of
Awards: Market Unearned Unearned
Number of Number of Number of Value of Shares, Shares,
Securities Securities Securities Number of Shares or Units or Units or
Underlying Underlying Underlying Shares or Units of Other Other
Unexercised Unexercised Unexercised Option Units of Stock That Rights Rights That
Options Options Unearned Exercise Option Stock That Have Not That Have Have Not
(#) (#) Options Price Expiration Have Not Vested (1) Not Vested Vested (2)
Name Exercisable Unexercisable (#) ($) Date Vested (#) ($) (#) ($)
Charles W. Ergen - - 400,000 $ 6.00 2/17/2009 - $ - - $ -
40,000 40,000 - $ 28.88 3/31/2013 - $ - - $ -
160,000 240,000 - $ 30.75 6/30/2014 - $ - - $ -
500,000 - - $ 33.25 12/31/2014 - $ - - $ -
- - 900,000 $ 29.57 9/30/2015 - $ - - $ -
Carl E. Vogel 140,000 560,000 400,000 $ 30.16 6/30/2015 80,000 $ 3,042,400 (3) - $ -
- 150,000 300,000 $ 32.74 9/30/2016 50,000 $ 1,901,500 (4) - $ -
David K. Moskowitz - - 400,000 $ 6.00 2/17/2009 - $ - - $ -
120,000 - - $ 6.00 2/17/2009 - $ - - $ -
60,000 40,000 - $ 28.88 3/31/2013 - $ - - $ -
80,000 120,000 - $ 30.75 6/30/2014 - $ - - $ -
- - 300,000 $ 29.25 3/31/2015 - $ - - $ -
40,000 160,000 - $ 30.16 6/30/2015 - $ - - $ -
300,000 - - $ 27.18 12/30/2015 - $ - - $ -
David J. Rayner 200,000 300,000 - $ 33.25 12/31/2014 - $ - - $ -
- - - $ - - - $ - 60,000 (5) $ 2,281,800
O. Nolan Daines - 40,000 - $ 17.30 9/30/2012 - $ - - $ -
32,000 48,000 - $ 30.75 6/30/2014 - $ - - $ -
48,000 72,000 - $ 31.12 9/30/2014 - $ - - $ -
- - 300,000 $ 29.25 3/31/2015 - $ - - $ -
20,000 80,000 - $ 30.16 6/30/2015 - $ - - $ -
Bernard L. Han - 350,000 90,000 $ 32.74 9/30/2016 - $ - 30,000 (5) $ 1,140,900
(1) Amount represents the number of unvested restricted stock units multiplied by the closing market price of EchoStar’s
Class A Shares of $38.03 on December 31, 2006.
(2) Amount represents the number of unvested, performance-based restricted stock units multiplied by the closing
market price of EchoStar’s Class A Shares of $38.03 on December 31, 2006.
(3) Restricted stock awarded on June 30, 2005 under EchoStar’s Stock Incentive Plans.
(4) Restricted stock awarded on September 30, 2006 under EchoStar’s Stock Incentive Plans.
(5) Restricted stock awarded on September 30, 2006 under EchoStar’s 2005 LTIP.
15
20. Option Exercises and Stock Vested for 2006
Option Awards Stock Awards
Number of
Shares Value
Acquired on Value Realized Number of Shares Realized on
Exercise on Exercise (1) Acquired on Vesting (2)
Name (#) ($) Vesting (#) ($)
Charles W. Ergen - $ - - $ -
Carl E. Vogel - $ - 20,000 $ 616,200
David K. Moskowitz 42,176 $ 1,346,461 - $ -
David J. Rayner - $ - - $ -
O. Nolan Daines 80,000 $ 1,534,012 - $ -
Bernard L. Han - $ - - $ -
(1) The value realized on exercise is computed by multiplying the difference between the exercise price of the stock option
and market price of the Class A Shares on the date of exercise by the number of shares with respect to which the option
was exercised.
(2) The value realized on vesting is computed by multiplying the number of shares of stock by the market price of the
Class A Shares on the vesting date.
Director Compensation and Nonemployee Director Option Plans for 2006
Change in
Pension Value
and
Fees Nonqualified
Earned or Non-Equity Deferred
Paid in Stock Option Incentive Plan Compensation All Other
Cash Awards Awards (1) Compensation Earnings Compensation Total
Name ($) ($) ($) ($) ($) ($) ($)
Steven R. Goodbarn $ 54,500 $ - $ 31,509 $ - $ - $ - $ 86,009
Gary S. Howard $ 47,500 $ - $ 31,509 $ - $ - $ - $ 79,009
Tom A. Ortolf $ 53,500 $ - $ 31,509 $ - $ - $ - $ 85,009
C. Michael Schroeder $ 54,500 $ - $ 31,509 $ - $ - $ - $ 86,009
(1) The amounts reported in the “Option Awards” column reflect the dollar amount recognized for financial statement
reporting purposes for the fiscal year ended December 31, 2006, in accordance with SFAS 123R. Assumptions used in
the calculation of these amounts are included in Note 3 to the Company’s audited financial statements for the fiscal
year ended December 31, 2006, included in the Company’s Annual Report on Form 10-K/A filed with the Securities
and Exchange Commission on March 6, 2007. On June 30, 2006, each of the nonemployee directors was granted an
option to acquire 5,000 Class A Shares at an exercise price of $30.81 per share. Options granted under our
Nonemployee Director Plans are 100% vested upon issuance. Thus, the amount recognized for financial statement
reporting purposes and the full grant date fair value are the same.
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21. Our employee directors are not compensated for their services as directors. Each nonemployee director receives an annual
retainer of $40,000 which is paid in equal quarterly installments on the last day of each calendar quarter, provided such
person is a member of the Board on the last day of the applicable calendar quarter. Our nonemployee directors also receive
$1,000 for each meeting attended in person and $500 for each meeting attended by telephone. Additionally, the chairperson
of each committee of the Board receives a $5,000 annual retainer, which is paid in equal quarterly installments on the last
day of each calendar quarter, provided such person is the chairperson of the committee on the last day of the applicable
calendar quarter. Furthermore, our nonemployee directors receive: (i) reimbursement, in full, of reasonable travel
expenses related to attendance at all meetings of the Board of Directors and its committees and (ii) reimbursement of
reasonable expenses related to educational activities undertaken in connection with service on the Board of Directors and its
committees.
Upon election to our Board, our nonemployee directors are granted an option to acquire a certain number of our Class A
Shares under our 2001 Nonemployee Director Stock Option Plan (our “2001 Director Plan,” and together with the 1995
Nonemployee Director Stock Option Plan, the “Nonemployee Director Plans”). Options granted under our Nonemployee
Director Plans are 100% vested upon issuance and have a term of five years. We also currently grant each continuing
nonemployee director an option to acquire 5,000 Class A Shares every year in exchange for their continuing services.
We have granted the following options to our nonemployee directors under these plans:
Option Awards
Number of
Securities
Underlying
Unexercised Option
Options Exercise Option
(#) Price Expiration
Name Exercisable ($) Date
Steven R. Goodbarn 10,000 $ 22.26 12/31/2007
5,000 $ 34.62 6/30/2008
5,000 $ 31.12 9/30/2009
5,000 $ 30.16 6/30/2010
40,000 $ 27.18 12/30/2010
5,000 $ 30.81 6/30/2011
Gary S. Howard 50,000 $ 27.18 12/30/2010
5,000 $ 30.81 6/30/2011
Tom A. Ortolf 10,000 $ 30.16 6/30/2010
40,000 $ 27.18 12/30/2010
5,000 $ 30.81 6/30/2011
C. Michael Schroeder 10,000 $ 33.99 12/31/2008
5,000 $ 31.12 9/30/2009
5,000 $ 30.16 6/30/2010
40,000 $ 27.18 12/30/2010
5,000 $ 30.81 6/30/2011
Employee Stock Incentive Plans
We have two employee stock incentive plans, our 1995 Stock Incentive Plan and 1999 Stock Incentive Plan (the “Stock
Incentive Plans”). We adopted the Stock Incentive Plans to provide incentives to attract and retain executive officers and
other key employees. The Stock Incentive Plans are administered by our Compensation Committee.
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22. Awards available under the Stock Incentive Plans include: (i) common stock purchase options; (ii) stock appreciation
rights; (iii) restricted stock and restricted stock units; (iv) performance awards; (v) dividend equivalents; and (vi) other
stock-based awards. As of December 31, 2006, 65,558,450 of our Class A Shares were available for issuance under the
1999 Stock Incentive Plan. Our authorization to grant new awards under the 1995 Stock Incentive Plan has expired. The
Compensation Committee retains discretion, subject to plan limits, to modify the terms of outstanding awards and to re-
price awards.
Options to purchase 22,761,833 Class A Shares were outstanding as of December 31, 2006 under the Stock Incentive Plans.
These options generally vest at the rate of 20% per year commencing one year from the date of grant. The exercise prices
of these options, which have generally been equal to or greater than the fair market value of our Class A Shares at the date
of grant, range from $2.125 to $79.00 per Class A Share.
As previously discussed in Compensation Discussion & Analysis, we have adopted the 1999 LTIP and the 2005 LTIP
under EchoStar’s Stock Incentive Plans.
Equity Compensation Plan Information
In addition to the Nonemployee Director Plans and the Stock Incentive Plans, during 2002 we adopted our Class B CEO
Stock Option Plan, under which we have reserved 20 million shares of our Class B Shares for issuance. No options have
been granted to date under our Class B CEO Stock Option Plan.
The following table sets forth a description of our equity compensation plans as of December 31, 2006:
Number of
Number of Securities
Securities to Weighted- Remaining
be Issued Average Available for
Upon Exercise Future Issuance
Exercise of Price of Under Equity
Outstanding Outstanding Compensation
Options, Options, Plans (excluding
Warrants Warrants securities reflected
and Rights and Rights in column (a))
Plan Category (a) (b) (c)
Equity compensation plans approved by security holders 22,761,833 $ 25.67 66,573,450
Total 22,761,833 $ 25.67 66,573,450
We no longer grant equity awards pursuant to our 1995 Stock Incentive Plan or our 1995 Nonemployee Director Stock
Option Plan.
Compensation Committee Interlocks and Insider Participation
The Compensation Committee is comprised solely of outside directors. The Compensation Committee members are Mr.
Goodbarn, Mr. Howard, Mr. Ortolf and Mr. Schroeder. None of these individuals was an officer or employee of EchoStar
at any time during the 2006 fiscal year. No executive officer of EchoStar served on the board of directors or compensation
committee of any other entity that had one or more executive officers who served as a member of EchoStar’s Board of
Directors or its Compensation Committee during the 2006 fiscal year.
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23. Performance Graph
The graph below sets forth the cumulative total return to our shareholders during the period from December 31, 2001 to
December 31, 2006. The graph assumes the investment on December 31, 2001 of $100 in (i) our Class A Shares, (ii) an
industry peer group and (iii) the NASDAQ Composite Index and reflects reinvestment of dividends and market
capitalization weighting. The industry peer group consists of: Cablevision Systems Corporation, Comcast Corporation, The
DirecTV Group, Inc., EchoStar and Time Warner, Inc. Although the companies included in the industry peer group were
selected because of similar industry characteristics, they are not entirely representative of our business.
TOTAL RETURN TO STOCKHOLDERS
(Assumes $100 investment on 12/31/01)
160
140
120
100
Dollars
80
60
40
20
0
12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006
EchoStar Communications Peer Group Nasdaq Composite
Total Return Analysis
12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006
EchoStar Communications $ 100.00 $ 81.03 $ 123.74 $ 128.32 $ 104.90 $ 146.77
Peer Group $ 100.00 $ 56.08 $ 75.88 $ 78.11 $ 66.51 $ 97.99
Nasdaq Composite $ 100.00 $ 68.47 $ 102.72 $ 111.54 $ 113.07 $ 123.84
The preceding graph and table shall not be deemed to be “solicited material” or “filed” or incorporated by reference in any
filing we make under the Securities Act of 1933 (the “Securities Act”) or under the Exchange Act, irrespective of any
general statement incorporating by reference this Proxy Statement into any such filing, or subject to the liabilities of
Section 18 of the Exchange Act, except to the extent that we specifically incorporate this information by reference into a
document we file under the Securities Act or the Exchange Act.
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24. Certain Relationships and Related Transactions
Our Board has adopted a written policy for the review and approval of transactions involving EchoStar and related parties,
such as directors, executive officers and their immediate family members. In order to survey these transactions, we
distribute questionnaires to our officers and directors on a quarterly basis. Our General Counsel then directs the appropriate
review of all potential related-party transactions and schedules their presentation at the next regularly-scheduled meetings
of the Audit Committee and the Board of Directors. Both the Audit Committee and the Board of Directors must approve
these transactions, with all interested parties abstaining from the vote. Once each calendar year, the Audit Committee and
the Board of Directors undertake a review of all recurring potential related-party transactions. Both the Audit Committee
and the Board of Directors must approve the continuation of each such transaction, with all interested parties abstaining.
In March of 2000, we purchased Kelly Broadcasting Systems, Inc. (“KBS”). At that time, Mr. Kelly was a shareholder of
KBS and served as its President. Title to certain assets purchased in the acquisition has not yet been transferred, and
payments of as much as approximately $2 million may be due to Mr. Kelly in accordance with the terms of the purchase
agreement. No changes to the purchase agreement occurred during 2006 and no assets or payments were exchanged during
2006. During 2006, we entered into a routine mutual release with Mr. Kelly in connection with certain KBS transactions.
During 2006, we also employed two members of Mr. Kelly’s family. We paid these individuals a combined total of
approximately $160,000 during 2006 and expect to pay them approximately $170,000 in cash compensation along with an
option to purchase 2,000 shares of our Class A Common Stock during 2007.
During 2006, we employed three members of Mr. Daines’ family. We paid these individuals a combined total of
approximately $100,000 during 2006 and expect to pay members of Mr. Daines’ family a similar amount during 2007.
During 2006, we employed Mrs. Ergen and two other members of the Ergen family. We paid these individuals a combined
total of approximately $80,000 during 2006. Depending on the time and services that will be provided, they may earn more
than that amount during 2007.
Mr. Jackson’s brother earned approximately $80,000 during 2006 as an employee of a non-public company that provides
programming content to us. Affiliates of that company also supply us with parts used in the manufacture of our satellite
receivers and related equipment. Neither EchoStar, nor any of its directors or executive officers has any ownership or other
personal financial interest in that company. We and our contract manufacturers paid that company and its affiliates a total
of approximately $180 million during 2006, representing approximately 48% of their total revenues.
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