Martha Stewart: Nearly $5.5M in 2012 compensation

BY Gary Strauss | FROM USA TODAY | 2013-07-19 10:23

USA TODAY4:36 p.m. EDT July 18, 2013
Martha Stewart's perks would make even the most well-heeled CEO blush.
Stewart, founder and creative director of lifestyle Martha Stewart Living Omnimedia, received compensation valued at $5.46 million in 2012 according to the company's just-filed annual proxy statement. That's about 260% higher than the $1.5 million received by CEO Lisa Gersh, who resigned in February and has yet to be replaced.
Perks accounted for about $3.4 million of the 71-year-old domestic diva's compensation package. Including:
Fees and expenses: $2 million.
Security services: $642,128.
Earnings as "talent" on company TV shows: $88,500.
Wages for employees who work for Stewart: $393,574.
Personal drivers: $127,955.
Expenses for personal fitness, wellness, beauty and wardrobe: $168,871.
Stewart will be getting a pay cut this year. Under a recently signed employment agreement, Stewart agreed to a salary of $1.8 million - 10% below her current $2 million base. She'll also receive a $1.7 million annual licensing fee - $300,000 less than 2012.
Stewart received compensation valued at $5.5 million in 2011 and $5.9 million in 2010
The company says that Stewart's primary responsibility center on creative editorial and TV matters and that her compensation is structured primarily for her role as "the key on-air performer for a host of creative initiatives."
Still, Stewart's signature Hallmark Channel show was canceled in 2012 due to poor ratings after two years and an eight-hour block of Stewart-branded shows launched in 2010 has been cut to five hours. Moreover, The company - in which she holds a 41% stake - has posted losses for nine of the last 10 years.
Martha Stewart shares went public in 1999 at $18 a share. Thursday's close: $2.49.

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