Blog Post Amends Cramer’s Contract; Delays Salary Increase

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Join the Community! (NSDQ: TSCM) has amended founder Jim Cramer’s contract, according to an SEC document just filed, which includes a delay in his 2010 salary increase and a decrease of the bonus for this year. But in lieu, it gave Cramer about 22k restricted stock units. No specific reason was given for this change, but the company was on a cost-cutting move earlier last year and this could be part of that process. The last time Cramer’s contract was extended for three years was early 2008, after some delays due to what we understood to be personal circumstances then.

The full language of the filing:

“the parties amended the Employment Agreement dated as of January 1, 2008 between the Company and Mr. Cramer to provide that (i) the increase to Mr. Cramer’s base salary that was to take effect on January 1, 2010 (to $1,872,000 per annum, from $1,560,000 per annum) will be delayed until July 1, 2010; and (ii) Mr. Cramer’s target bonus for 2010 will be $1,287,000 (before the Amendment, it would be have been 75% of $1,872,000, or $1,404,000), subject to the proviso in the Employment Agreement that Mr. Cramer’s annual bonus be not less than the annual bonus paid to any other executive, employee or independent contractor engaged by the Company for the period.” Except as expressly modified by the Amendment, the terms of the Employment Agreement remain unmodified and in full force and effect. The Agreement also provided that the Company would grant Mr. Cramer 22,200 restricted stock units (RSUs) promptly upon execution of the Agreement, one-third of which RSUs shall vest on each of the first three anniversaries of the date of grant, subject to the terms of an RSU agreement in the form of the RSU agreement between the parties dated as of April 9, 2008.”