Tag Archives: Jim Cramer
TheStreet.com disclosed in an SEC filing Wednesday that co-founder Jim Cramer will be paid a base salary of $1.3 million this year, up 30 percent from 2007, with the salary increasing to $1.87 million by the year 2010.
Cramer will also receive 300,000 shares of restricted stock in the company. The stock options vest during the next five years.
In 2009, Cramer will be paid $1.56 million, a 20-percent increase from this year, according to the filing. His base salary will increase another 20 percent in 2010. He also gets six weeks paid vacation.
Last year, Cramer was paid a base salary of $1 million by TheStreet.com, up from the $750,000 base salary he received in 2006.
The filing states, “In addition, Mr. Cramer will receive a signing bonus in the amount of $100,000 and will be eligible for an annualized target bonus equal to 75% of salary based upon achievement of financial targets as determined by the Company.”
In addition, the filing states that Cramer would receive a payment equal to three times his salary if the company is sold, and he would have the right to terminate his employment agreement.
TheStreet.com compensation does not include what Cramer makes for hosting the CNBC show “Mad Money.”
Read the filing here.Â Cramer had been working without a contract since the beginning of the year.
Fortune magazine writer Jessi Hempel writes in the latest issue about what makes business news cable channel CNBC so successful.
Hempel writes, “At CNBC, broadcast veteran Mark Hoffman has added edge and emotion to a network that was heavily criticized in the run-up to the tech bust for its rah-rah business take on the news. Hoffman was in fact the news director there before leaving to run a local NBC station. When he returned as president in 2005, ratings had hit their lowest level since the channel launched in 1989, and primetime was given over to reruns of the Conan O’Brien Show, as well as fare like tennis pro John McEnroe’s talk show, which sometimes earned a Nielsen rating of 0.0.
“Hoffman, who came up with a four-part mantra for the channel — fast, accurate, actionable, unbiased — began his CNBC tenure wandering the newsroom floor, checking in with reporters directly. ‘Mark is remarkable because he says, ‘Tell me what you need.’ And we get it,’ says Jim Cramer of Mad Money.
“Hoffman describes CNBC’s formula for investotainment this way: ‘We’re always looking for qualitative combat on the air. Most of these conversations live somewhere between fear on one end and greed on the other. One person wants to unload something, and another person wants to pick it up.’ His boss Jeff Zucker, in charge of NBC Universal, credits him with changing both the management team behind the scenes and the on-air look of the network.”
Read more here.
Alice Gomstyn of ABC News reports that the recent criticism of CNBC “Mad Money” host Jim Cramer in relation to what he said or didn’t say about Bear Stearns has exposed deeper concerns.
Gomstyn wrote, “Snark aside, concerns raised by industry veterans and investment advisors take the long view of Cramer and his impact on small investors.
“‘He kind of puts himself forward as the champion of retail investors, but had they listened to him on the [Bear Stearns] call, they would have lost a lot of money,’ said Roger Ehrenberg, the managing partner of IA Capital Partners in New York. ‘He empowers people to feel confident about buying and selling individual stocks, when in fact most people are ill-qualified to invest in that manner.’
“Ehrenberg and others say that Cramer’s show may encourage small investors to make frequent trades when it is really in their interest to invest in mutual funds and hold them for long periods of time.”
Read more here.
Conrad De Aenlle of The New York Times writes Sunday that CNBC “Mad Money” host Jim Cramer says he was misunderstood when he responded to a viewer’s question about Bear Stearns.
De Aenlle wrote, “In a March 11 broadcast, viewed tens of thousands of times on YouTube and parsed by satirists like Jon Stewart, Mr. Cramer told a viewer who asked whether he should remove money from Bear: ‘No, no, no! Bear Stearns is fine. Bear Stearns is not in trouble.’ He then advised: ‘Donâ€™t move your money from Bear. Thatâ€™s just being silly.’
“Late last week, Mr. Cramer said in an interview that he was referring to assets in Bear Stearns brokerage accounts, not the stock.
“On the contrary, he said, he later made ‘an unbelievable call’ that the stock would end up worthless. A transcript of a broadcast on March 14 has him panning the stock, although he did not say unequivocally that it would fall close to zero. As for his earlier assessment that Bear Stearns was not in trouble, well, that was somewhat off the mark.”
Read more here.
CNBC‘s “Mad Money with Jim Cramer” is selling off memorabilia from the set in a live, online auction.Â
This marks the first time the NBC Universal Online store has conducted an auction with a single program as well as the first time the store has conducted an auction with CNBC.
The auctionÂ began on Monday and will last throughÂ Wednesday, March 26 at http://madmoney.cnbc.com.Â A portion of the proceeds will benefit United Way.Â
“‘Mad Money’ is honored to be a part of another first,” said executive producer Regina Gilgan in a statement. “We were the first CNBC program to offer merchandise in the NBC Experience Store and online, and now we are the first single and non-entertainment program the NBC Universal Online store has partnered with for a live auction.This auction gives ‘Mad Money’ fans a new and exciting way to be a part of the program.”
Eight items will be auctioned, including a golden bobblehead, aÂ signed copy of Cramer’s new book, “Jim Cramer’s Stay Mad for Life,” and two-of-a-kind “Mad Money” blankets.
Business and Media Institute’s Jeff Poor writes Monday about how CNBC “Mad Money” host Jim Cramer told a viewer last week to keep his money in Bear Stearns’ stock when it was trading above $60. The company was sold Monday for $2 a share.
Poor wrote, “But, on March 11, Cramer told an e-mailer not to sell the beleaguered investment bankâ€™s stock on his showâ€™s Web site:
‘Dear Jim: Should I be worried aboutBear Stearns in terms of liquidity and get my money out of there? –Peter
“Cramer says: ‘No! No! No! Bear Stearns is not in trouble. If anything, theyâ€™re more likely to be taken over. Donâ€™t move your money from Bear.’
“On Jan. 17, 2007, Bear was trading at its high of $171.51 a share. Since then, it has been racked by the mortgage turmoil. On March 11, when Cramer posted the e-mail and his response, the stock closed at $62.97. As of 10:00 a.m. on March 17, the stock was trading at $3.72 a share.
“Cramer frequently appears on ‘NBC Nightly News’ and ‘Today.’ On the January 22 ‘Nightly News,’ Cramer was referred to by his colleague Carl Quintanilla as ‘one of the most influential voices on Wall Street.’”
Freeland wrote, “Even if you buy Cramer’s shtick about his tortured relationship with himself — and this Woody Allen-esque self-loathing is certainly an essential foil to his show’s other excesses and part of what makes it so watchable — it isn’t the whole story. For one thing, he is unambivalently proud to have succeeded as a journalist, a career that seems to have more value for him than his previous incarnation as a hedge fund manager.
“‘I like what I do,’ Cramer says, for a moment sounding absolutely earnest and unconflicted. ”I had done the hedge fund thing. It was fine, but I always wanted to be a journalist. And I think this is more fun for me now. Everybody’s a hedge fund manager. There’s not a lot of guys with their own TV shows.’
“Part of what motivated Cramer’s move is his conviction that his combination of Wall Street pedigree and Animal House slap-stick is the best way to bring the markets — and all the riches he believes they can deliver — to the ordinary guy. Cramer occasionally comes across as the Street’s raucous spokesman, as he did in his infamous and, it turns out rather prescient, summertime rant when he called on the Fed to wake up and start cutting rates.”
Read more here.
Eric Savitz of Barron’s reports that TheStreet.com‘s stock fell in Thursday trading by more than 8 percent after the business news web site reported fourth quarter earnings and held a conference call in which the company disclosed it has not yet reached agreement with co-founder Jim Cramer on a new contract.
Savitz wrote, “The company did acknowledge that it could be affected by a weakening economy. ‘As we all know, the economic environment has grown more challenging over the past few months, and there is great uncertainty as to how weak economic conditions might become and the impact this might have on our advertisers, subscribers and visitors to our network of sites,’ CFO Eric Ashman said on the call.
“One tidbit that might have made investors uneasy was a brief comment from Chairman and CEO Tom Clarke about the status of negotiations of a new employment agreement between the company and Jim Cramer. Clarke noted on the call that the agreement scheduled to expire December 31, 2007 was extended on the same terms through February 15, 2008. One day before that, on February 14, the agreement was extended once more on the same terms, this time through April 15. Cramerâ€™s writings are a key driver to the site; he also has a 6.4% stake in the company, of which he is a director. Itâ€™s not in either sideâ€™s interest to let the arrangement expire; but the need for a series of short extensions certainly hints at a drawn-out negotiation process.”
Read more here.
by Chris Roush
Dean Starkman of the Columbia Journalism Review writes Friday about the feud between CNBC and Barron’s that resulted after the weekly publication ran a story questioning the effectiveness of “Mad Money” host Jim Cramer‘s stock picks.
Since the August 2007 article, few Barron’s journalists have appeared on CNBC after regularly making appearances before the article ran. Starkman assesses the situation and concludes that the Barron’s article was fair.
He wrote, “In the end, was the Barronâ€™s piece a hatchet job, as CNBC contends? No, it really was not.
“So, was CNBC wrong to throw Barronâ€™s off the air? Actually, no. Itâ€™s its air.
“Did CNBC behave unprofessionally, as Barronâ€™s contends? Noâ€”except to the extent that its own policies force it into disingenuous arguments about what is and isnâ€™t a â€œpick.â€?
“This is the contradiction that the Barronâ€™s story, and the subsequent fallout, have exposed. Itâ€™s up to CNBC to resolve it.”
Read more here.
by Chris Roush
Marisa Guthrie of Broadcasting & Cable writes that “Mad Money” host Jim Cramer has renewed his contract with business news cable network CNBC. Terms were undisclosed.
“‘Jim has played an integral part in CNBCâ€™s rebirth,’ CNBC president Mark Hoffman said. ‘He is not only one of the most respected and successful Wall Street minds, but also happens to be a great entertainer.’”