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Martha Stewart becomes non-executive chairman of company
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By The Associated Press
| 05/24/2012 |
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NEW YORK (AP) -- Martha Stewart, on Wednesday, was named as non-executive chairman of the lifestyle, media and merchandising company that she created.
Stewart rejoined the board of Martha Stewart Living Omnimedia Inc. in September at the end of a five-year ban on serving as a board member or as an executive of a public company as part a settlement with federal regulators related to insider trading.
As non-executive chairman, Stewart will help set the direction for the business but will have no direct operating role. An executive chairman would typically also hold a top management role such as being CEO.
"I look forward to working closely with our directors and our management team as we focus on the future, capitalizing on the strength of our brand and our amazing customer connection to continue building our business so that it realizes its full and considerable potential," Stewart said.
Stewart was convicted in 2004 on federal criminal charges of lying to prosecutors about selling ImClone shares a day before the Food and Drug Administration announced it declined to review an ImClone application for a cancer drug. She served five months in prison.
In 2006, the Securities Exchange Commission agreed to settle a related civil case against Stewart. Under the agreement, Stewart agreed to pay about $58,000 as well as a civil penalty of about three times the loss she avoided, or about $137,000. She also agreed to a five-year ban from serving on the board or as an officer of a public company
Stewart succeeds Charles Koppelman as non-executive chairman.
Earlier this month Martha Stewart Living reported a smaller-than-expected first-quarter loss on lower expenses.
The company has a merchandising deal with Home Depot. J.C. Penney Co. announced in December that it will develop mini-shops in its stores with Stewart. However, that is being legally contested by Macy's Inc., which also offers Martha Stewart products.
Stewart's daily talk show, which aired in syndication before moving to cable's Hallmark Channel two years ago, is ending this summer.
Shares of Martha Stewart Living fell 12 cents, or 3.7 percent, to close at $3.09.
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