Friday, December 5, 2014

Activist Investor Says Jim Cramer Should Take a 70% Pay Cut

The hedge fund Cannell Capital, which is operated by Carlo Cannell, has taken an approximately  9% stake in the publicly traded stock of TheStreet 

In a letter to Cramer, Cannell advised that Cramer should slash his pay by 70 per cent and help his “fellow shareholders crawl back from Hades”.

“You are simultaneously an employee of CNBC and a director, major shareholder and employee of [TheStreet] TST,” Cannell wrote. “To which entity do you ascribe your greater allegiance?”

To resolve this conflict, Cannell is urging Cramer to do one of two things, either pursue a sale of TheStreet or quit CNBC. The letter was disclosed in an SEC filing yesterday by Cannell Capital LLC.

The hedge fund claims Cramer had received more than $14m in cash from the business since 1999, in addition to enjoying “non-pecuniary compensation such as perfumed sedan driver(s) and assorted assistants who spray ionised lavender water on your barren cranium”.

1 comment:

  1. Wouldn't he quit? And where would all three of Cramer's viewers get their financial advice if he left?