Martha Stewart is still money

Posted Apr 16th 2009 3:00PM by Sarah Gilbert
Filed under: Management, Martha Stewart Living Omnimedia (MSO)

If I was worried about the fate of Martha Stewart's flagship magazine, Martha Stewart Living, perhaps my concerns were unfounded. The statement from Martha Stewart Living Omnimedia (NYSE: MSO) could not be more bold, more unfailingly optimistic (like Martha herself): Martha is getting a raise.

It's a big one, from her current CEO salary of $900,000 a year to at least $2 million annually for the next three years, plus a hefty "retention incentive" of $3 million today.

But where was she going? you might ask. After all, the company is her very self, media-opolied. As far as I can tell, she was going nowhere, but without her there is little left. Martha's aspirational persona has made an indelible mark on our culture, one that has no danger of falling victim to our economic downturn. She represents the soul of the DIY ethos; not for nothing do people say of any well-executed craft, especially one involving vintage pieces found at a thrift store, "that's so Martha!"

Investors seem pleased with the contract renewal, sending the stock up a few cents to $3.57 as of mid-day. In fact, the stock seems to be finally rebounding, having hit its low of $1.60 on March 9 (with the rest of the market) after a four-year death march of sorts.

She won't need the money for the expenses that come with celebrity, since the company will still make sure she has drivers, automobiles and security. So the Martha Stewart housing boom -- she owns several homes and has consulted on housing developments modeled after them -- is still going strong, despite the economy.

Tags: ceo, martha, martha stewart, MarthaStewart, MarthaStewartLiving, mso, stewart

Print this

Reader Comments (Page 2 of 2)

4-25-2009 @ 11:40PM

Emanuel De Castro said...

I cannot believe that she was given a new contract that more than doubles her salary. I would have commented earlier on this article but just read it for the first time today. I just wonder how many people over at her company lost their jobs, so that dear dear Martha was able to get her raise.