Jim Cramer Breaks Down Fallen CEOs Blunders

In an essay published in New York Magazine, Jim Cramer, founder of TheStreet.com and host of Mad Money, wrote about the ineptitude of two fallen CEOs: Merrill Lynch's former head guy, Stan O'Neal, and Citigroup's ex-boss, Charles Prince III.

Cramer practically blasted the two CEOs, and he did not mind throwing in the banks that used to employ them either.

Cramer's piece focused on several issues concerning the bank and its CEOs ineptitude. One of the first being that Merrill Lynch was far too kind in calling the departure of Stan O'Neal a retirement and for paying him $160 million and calling it a contractual obligation. He says, "There was no mention that perhaps, if you lose $8 billion, you can be fired for cause and be denied the contracted pay package. If $8 billion in losses isn't cause, what is?"

Personally, I find Cramer to be completely correct in his assessment of this situation. Afterall, when the Average Joe is fired, he does not get $160 million. In fact, he often does not get anything, and he usually is not cause for a company losing $8 billion. The fact Merrill Lynch paid him all of that money resonates with me as a spineless move that was an effort to make it look as if they treat their CEOs with respect and a mother's touch. It also makes it look as if you can come into Merrill Lynch, do anything you want, are fired, and get paid $160 million on top of your already ridiculous salary.

Cramer goes on to describe Prince's departure from Citigroup as "ridiculously gracious" as well, despite the fact that Prince was might be responsible for as much as $11 billion in losses as well. He makes mention of the fact that Prince's resignation came a day before Citigroup was expected to determine the fate of the misguiding CEO and calls it a "Pure coincidence."

Citigroup's fall out with its CEO may have even been more cowardly than that of Merrill Lynch's. I wonder if the guy who is fired from the grocery store for coming up $6 short with his cash register receipts once or twice gets the courtesy of his boss saying that he chose to leave and that was not the decision of the grocery store.