Another $3 million for Martha Stewart…

May 12, 2009

We’re starting to get bored writing about Martha Stewart Omnimedia (MSO) as much as we do. Within the past year, we’ve written about founder Martha Stewart’s guaranteed bonus and the $2 million she gets to allow her various homes to be used for production purposes. There was also the overly sunny letter that she penned to investors earlier this year.

Despite this, we just couldn’t ignore Martha’s new employment contract in the 10-Q filed by the company yesterday, which includes a $3 million “retention payment” for the domestic goddess. That’s in addition to a $2 million salary, which according to the proxy the company filed last month, represents a $1.1 million raise. The contract also includes a wide range of other goodies, including “automobiles and drivers seven days a week”, reimbursement for all business, travel and entertainment expenses (which seems like a pretty broad definition), security expenses and even internet and telephone expenses at her various homes.

All of this makes us wonder: where exactly is the company’s board of directors? While the stock has bounced back off its lows, it’s dropped dramatically since 2005. There have also been several rounds of layoffs. Given that, does Martha Stewart really deserve a $3 million bonus just for signing her name not to mention a 122% raise?

Image Source: Pacific Coast News

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