Case 11: Corporate Governance at Martha Stewart Living Omnimedia: Not “A Good Thing” C-131
that paid her for corporate use of her image and homes
in promotions and demos. Stewart expensed many
other parts of her life, too, including a weekend driver
and a personal trainer. She said all the spending was
necessary to maintain the quality for which her brand
was known.
There was no question that Stewart and the brand
were synonymous. The question on the minds of investors
and consumers alike was: Was Stewart creating a powerful
brand that would outlive her, like Coco Chanel, or was she
more like Laura Ashley, the British fabric designer whose
1985 death thrust her company into a crisis?
Exhibit 2 Martha Stewart Living Omnimedia Selected Key Executive Compensation ($)
2012 2011 2010 2009 2008 2007 2006 2005
Martha Stewart
Founding Chairman and CEO
5,460,406a 5,501,800 5,907,387 9,784,505b 7,018,336 2,061,854 2,096,176 2,226,365c
Susan Lyne
President and CEO
1,671,633 3,934,693 4,405,782 1,333,622
Charles Koppelman
Executive Chairman, Prin
Exec Off
3,785,542 2,268,225 2,122,062 8,016,257
Lisa Gersh
President and COO
1,511,625d 3,759,903
Robin Marino
President and CEO,
Merchandising
1,711,311 1,418,510 2,498,228e 1,709,492 1,461,028 2,032,539
Wenda Harris Millard
President, Media
734,095 2,325,020e 2,718,631
Notes:
aFounder, Chief Creative Officer
bChief Editorial, Media and Content Officer
cFounder
dAdditional title of Chief Executive Officer
eCo-Chief Executive Officer
Source: MSO Proxy Statements.
27 mil
2012 Executive Compensation Compensation vs. Performance (1-Year % Change)
Total Executive Compensation MSO
18 mil
9 mil
23.66 mil
Total Compenstation
$8,540,439 –52.01 %
2008
Stock Price
2009 2010 2011 2012
16.30 mil
11.99 mil
17.80 mil
8.54 mil
10.00
5.00
0.00
Note: currency in USD.
1-Year % Change CEO Compensation Stock Return Revenue Return on Equity Net Income
–59.80% –44.32% –10.86% ––
Source: Morningstar.