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Martha Stewart Signs New Employment Contract

Sep 23, 2004  •  Post A Comment

Martha Stewart Living Omnimedia has entered into a new employment contract with its founder, but she won’t be paid while she serves her five-month prison sentence starting Oct. 8.

Under the terms of the five-year contract, which was signed Sept. 17 but filed Thursday with the Securities and Exchange Commission, Ms. Stewart, the company’s chief editorial and media director, will get a base salary of $900,000 a year and will be entitled to an annual bonus set by members of the board of directors’ compensation committee. The bonus target will be 100 percent of her base salary, though the range can be anywhere from 55 percent to 150 percent of her base salary.

In addition, Ms. Stewart will have a non-accountable expense allowance of $100,000 per year, and be entitled to cars and drivers provided by the company.

In terms of her television and radio work, Ms. Stewart received a payment of $200,000 on Sept. 17 for appearances she has already made. In addition, for each edition of a future network television program in which she appears, Ms. Stewart will be paid an amount equal to or greater than $500,000 plus two-thirds of all talent fees due to the company.

On Wednesday Ms. Stewart and her company struck a deal with reality television king Mark Burnett under which Mr. Burnett will consult with the company on revamping the “Martha Stewart Living” series currently on hiatus and on exploring and developing a network prime-time reality series featuring Ms. Stewart.

Ms. Stewart will also be paid $500,000 a year for three years for the use of her residences in assorted television shows, with the option to raise that amount to $750,000 in the second and third years if the company uses Ms. Stewart as on-air talent in any of the shows.