CEO pilloried

The well-watched host of an investment show has slammed DryShips chief executive George Economou over what he called "inept" management.

Jim Cramer, the controversial but popular host of CNBC's "Mad Money," put the Greek shipowner on his CEO "Wall of Shame."

"I think the stock would definitely rise if he were to resign in order to spend more time doing anything else other than running the company, including may I suggest, taking the USS Minnow out for a multi-year spin," Cramer said, referring to the wrecked vessel in the television show "Gilligan's Island".

Economou was travelling Thursday and could not be immediately reached for comment.

To appear on Cramer's "Wall of Shame," CEOs must preside over a record of underperformance and destruction of shareholder value. In addition, shares must be expected to rise if the boss quits to "spend more time with his family."

"The way I see it, all these things are true for our newest member, George Economou, the inept CEO of DryShips," Cramer said.

Cramer was responding to an email suggestion from a viewer "Jeff," who complained of a share price drop from roughly $120 to $5.

But "to be fair to Economou," Cramer instead focused on the just 66% drop in DryShips shares since the shipowner took it public in 2005, and he pointed to other bulker owners that have seen smaller declines since becoming public companies.

But Cramer said DryShips' "underperformance" compared to peers can be blamed on Economou for buying ships at high prices and "leaving shareholders high and dry."

He contrasted Economou to Nordic American Tanker Shipping chief executive Herbjorn Hansson, whom Cramer counts among his favorite chief executives, for husbanding cash and buying at a better moment.

"Admittedly, NAT is an oil tanker company not a dry-bulk shipper, but the principle is the same. You can see the difference between good management and Economou's horrible 'Wall of Shame'-worthy management," Cramer said.

Athens-based DryShips owns 42 bulkers, including four newbuildings, and it has two drilling rigs and four newbuilding drillships.