TheStreet and Jim Cramer Strike New 3-Year Deal
December 13 2010 - 7:30AM
Business Wire
TheStreet.com, Inc. (Nasdaq:TSCM - News), a leading digital
financial media company, today announced that the Company and
founder and contributor Jim Cramer have entered into a new 3-year
agreement. This new agreement, which commences January 1, 2011,
provides Mr. Cramer with a royalty based on the revenue derived
from the Company’s Action Alerts PLUS subscription service which he
authors, in lieu of a base salary and bonus. As with the prior
contract, Mr. Cramer also will receive a grant of restricted stock
units, which will vest over three years, subject to acceleration or
forfeiture under various circumstances.
Daryl Otte, CEO of TheStreet, commented, “We are pleased to
extend our relationship with Jim under terms that even more closely
align our mutual interests in the success of the Action Alerts PLUS
service and our share price. The new arrangement will result in
lower overall expense to the Company at current revenue levels for
the service, while providing Jim with the opportunity for unlimited
upside, in a way that would benefit both him and the Company. While
we have diversified TheStreet considerably over the recent years –
establishing it as a trusted destination for actionable investing
ideas and business and financial news and commentary, all created
by a team of almost 200 on-staff editors, professional analysts,
journalists and hand-selected outside contributors – Jim remains an
important contributor.
“As our founder and our longest-standing senior contributor, Jim
has been both a guiding voice for the Company and its largest
supporter for almost 15 years. Our new arrangement, with its
significant reduction in fixed expenses, is the latest example of
exemplary support Jim has shown for the Company – from delaying
salary raises he was entitled to under the expiring contract, to
the active purchase of Company shares in the open market earlier
this year. We appreciate this support and are pleased to have him
on board as we continue to further the mission Jim introduced in
the Internet’s earliest days, when he pioneered digital vertical
media for the financial sector in the mid-1990s,” said Mr.
Otte.
Mr. Cramer commented, “TheStreet has become a beacon of
investment ideas, news and commentary for a wide range of market
participants and is a leader in the digital vertical media
business. The Company has a long history of dual revenue sources,
from advertising and subscriptions, which even today remains a
rarity in digital media. I am proud of the important role the
Company I co-founded plays and believe strongly in our management’s
ability to introduce a differentiated experience that delivers on
the Company’s brand promise. I’m pleased to sign up for another
three years of service with the Company, to author the Action
Alerts PLUS service I feel so passionately about, and to assist the
Company as it continues to launch and grow great new products.
Action Alerts PLUS is the only product I know of where a
professional money manager plays with an open hand: I tell our
subscribers what trades I’m going to make – buy or sell – with the
real funds of my charitable trust, before I make the trade. The
portfolio in my charitable trust (100% of the profits will go to
charity) has consistently beaten the S&P 500 since its
inception nine years ago. This unique product rises above the
cacophony of the investment newsletters available for the
public.
“Given the length of this new contract and my current plans for
the way I plan to spend my time beyond that, I expect that this
will be the last long-term agreement between me and the Company.
Although I’d expect to continue participating in the Company’s
success beyond that in some manner, I’ve made this decision now as
I want to be mindful to set the stage for a transition far enough
out into the future that ensures the business will be well prepared
to continue, from a position of strength, beyond my involvement,”
said Mr. Cramer.
About TheStreet
TheStreet is a leading digital financial media company that
distributes its content through online and mobile channels. The
Company's network includes the following properties: TheStreet,
RealMoney, Stockpickr, BankingMyWay, MainStreet and Rate-Watch. For
more information and to get stock quotes and business news, visit
TheStreet.com or through a mobile device at TheStreet.mobi.
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