TheStreet to pay Cramer $2.5 million in royalties in 2014
Financial news site TheStreet.com will pay co-founder Jim Cramer a royalty fee of $2.5 million in 2014, according to the company proxy statement filed Friday with the Securities and Exchange Commission.
The company is paying Cramer $208,333 monthly this year to satisfy the royalty agreement, according to the proxy. He was paid $1.48 million in royalties in 2013 under a previous royalty agreement.
In addition, the company has an agreement with Cramer, who writes for the site in addition to hosting “Mad Money” on CNBC, an annual licensing fee of $300,000 to use his name and likeness to promote itself. The licensing fee is paid in a lump sum on Jan. 1 in 2014 and 2015 and then on a quarterly basis for 2016 and 2017.
Cramer has recently received $3 million in restricted stock in two payments — one in December 2013 and another in January, according to the proxy.
The filing also disclosed that chief executive officer Elisabeth DeMarse’s base salary is increasing in 2014 to $480,000 from $400,000. Cramer is not paid a base salary.
For 2013, TheStreet reported revenue of $54.5 million, a 7.4 percent increase. The net loss for the year was $3.8 million compared to a net loss of $12.7 million in the prior year.
To read the proxy statement, go here. The company’s annual meeting will be held June 12 in New York.