Martha Stewart Living shelled out extra to its badly behaved star, a Securities and Exchange Commission filing reveals.
By Associated Press
Published May 1, 2004
NEW YORK - Convicted felon and homemaking maven Martha Stewart received a bonus on top of her bonus last year.
Martha Stewart Living Omnimedia Inc. paid its namesake a $500,000 bonus - $200,000 more than called for in her contract, according to a Securities and Exchange Commission filing Friday. Stewart's salary was unchanged at $900,000.
Stewart, the company's founder, former chief executive and chairman, was convicted March 5 of lying to investigators, conspiracy and obstruction of justice, all related to her sale in late 2001 of stock in biotech company ImClone Systems Inc. Stewart, who is appealing her conviction, is to be sentenced June 17.
Following her conviction, Stewart stepped down in March as CEO and from the board, but she was given the new title of founding editorial director.
Stewart is expected to continue to be paid an annual salary of $900,000 and guaranteed bonus of $300,000, which remains in effect until October. If Stewart is sentenced to prison, the company will review the agreement, company officials have said.
In Friday's filing, Martha Stewart Living said: "The terms of Ms. Stewart's employment agreement were established based on a number of considerations, including Ms. Stewart's contribution to the company as its founder, her services as on-air talent . . . and her services as MSO's chairman and chief executive officer."
Shares of Martha Stewart fell 27 cents to close at $10.26 Friday on the New York Stock Exchange.
