Martha Stewart’s pay cut by 10 percent
Bloomberg News
Martha Stewart has agreed to have her annual pay cut by 10 percent as the company she created struggles to curtail losses amid a shift from publishing and TV.
Martha Stewart Living Omnimedia Inc. changed the compensation to $1.8 million for its 71-year-old chairwoman as part of an option in a July 2012 agreement that extended her employment until 2017, according to a recent filing.
Her annual license fee was also trimmed by $300,000 to $1.7 million, and the board replaced an old expense policy that reimbursed her for chauffeur, Internet and home-security services.
In the past year, the New York-based company has suffered from slumping advertising sales at its magazines and declining broadcasting revenue following the cancellation of “The Martha Stewart Show.” Martha Stewart Living, which is trying to focus more on its merchandising business, is also seeking a permanent chief executive officer.
Martha Stewart Living, which posted a net loss of $3.27 million in the first quarter after losing $56.1 million in 2012, said in the filing the changes in Stewart’s contract are consistent with its plan to return to profitability.
The company has in the past 18 months been embroiled in a lawsuit brought by Macy’s Inc. The department-store chain, which has sold Martha Stewart-branded home goods since 2007, sued after rival J.C. Penney Co. took a stake in Martha Stewart Living.