Jim Cramer is known as the “Mad Money” guy, and now, one of his prominent investors is mad at him.
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Cramer, who hosts “Mad Money” on CNBC, a platform in which he tells Wall Street vets and up-and-comers what stocks to buy, while also running TheStreet.com, has come under fire from one of the latter’s prominent investors, J. Carlo Cannell.
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Cannell, an investment manager and 9% stockholder in Cramer’s website TheStreet.com, is displeased with the company’s performance, which includes a drop to $2.25 a share from $60 in 1999.
During this stock tumble, Cannell says Cramer has been living it up. In a letter sent Wednesday to the website, he provides examples.
“From May 1999 to December 2013, you have extracted more than $14 million in cash payouts from TST, excluding millions more paid out as stock options. In addition, you have enjoyed considerable non-pecuniary compensation such as perfumed sedan driver(s) and assorted assistants who spray ionized lavender water on your barren cranium. Despite the long decline of TST’s share price your compensation continues to trend higher. The four year employment agreement you signed in November 2013 guarantees you total compensation of at least $3.5 million per annum – nearly 5% of the market capitalization of TST and more than the cumulative dividends expected to be paid out this year to common shareholders.”
Cannell gave an ultimatum to Cramer: give up his CNBC hosting gig or sell TheStreet.com. Cannell says Cramer’s responsibilities for CNBC preclude him from being an active leader with his website.
“Media companies that have a brand, and are able to monetize that brand, are tremendously profitable,” Cannell said to The New York Times. “When you (Cramer) lie upon your deathbed, how will you reflect upon on your legacy?” the activist investor wrote in his letter. “You have done well, but how has the common shareholder done?”
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CNBC has not yet responded to TheWrap’s request for comment.
Watch a segment on the situation via Fox Business: