Cramer's 'Mad Money' Recap: Valuing Co.'s vs. CEOs (Final)
Then there's the case of Chesapeake Energy (CHK) and its CEO Aubrey McClendon. Back in 2008, McClendon used margin to buy up shares of Chesapeake, an ill-timed investment that cost the company big time. Now it was announced that McClendon again borrowed money, this time for an unrelated acquisition. Cramer questioned whether this move was in the best interest of Chesapeake shareholders. If Chesapeake were making money, he said frankly, then he wouldn't care. But since Chesapeake has been struggling, he's deeply concerned.
If a company is making money, then the antics of its CEO don't really matter, Cramer concluded, but if a company isn't making money, then its CEO matters a whole lot more.