Martha Stewart Publishing’s Strong 2006 Performance Earns President Large Bonus
Martha Stewart Omnimedia’s publishing president earned a bonus last year that was just $75,000 short of her base salary due to the publishing division’s strong performance. According to a proxy statement filed with the Securities and Exchange Commission earlier this week, Laura Stanich earned a $400,000 bonus, which equaled 120 percent of her target. In exchange for meeting company goals, Stanich’s original target was $332,500 or 70 percent of her $475,000 salary. The company said she exceeded her goals to earn the higher bonus.
Stanich’s total compensation last year was just under $1.125 million and also included $226,176 in stock awards. According to the proxy statement, Stanich was charged last year with increasing the number of ad pages and ad rates for the magazines, and with developing and running more profitable books and weddings businesses. She was also responsible for the launch of Martha Stewart’s newest magazine Blueprint.
Martha Stewart’s flagship magazine, Martha Stewart Living posted double-digit ad page and revenue gains last year, according to ABC Fas-Fax numbers. The publishing segment of the business closed out the fourth quarter of last year with $43.1 million in revenue, up 5 percent from $41.1 million in the fourth quarter of 2005. Total ad revenue was up 26 percent to $23.9 million, ad pages increased 11 percent at Martha Stewart Living and 36 percent at Everyday Food, which achieved profitability last year – a year ahead of schedule. The company also increased ratebases on four of its five publications.
The company paid Stewart herself, who was banned by the SEC from serving as an officer of the company she created due to her insider trading conviction, almost $2.10 million last year, according to the same SEC document. Stewart still pens recipes for the magazines and remains the face of the brand with her own daytime television show.