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Martha Stewart's pay tops $2 million in 2006

/ Source: The Associated Press

Martha Stewart, founder of Martha Stewart Living Omnimedia Inc., received total compensation the company valued at $2.06 million, while its CEO Susan Lyne received compensation valued at $2.27 million in the year that the media empire enjoyed a rebound in its business, according to regulatory documents filed Monday.

Stewart — who is back in the limelight with her own TV show and other projects since she completed a prison sentence in March 2005 for lying about a stock sale — was paid a salary of $900,000 and a bonus of $495,000, according to a Securities and Exchange Commission filing. She also received $505,000 in compensation under a nonequity incentive plan.

Other compensation totaled $163,785 and included $6,731 in life insurance premiums as well as $39,181 for Stewart's personal use of the company plane. In addition, Stewart received an annual non-accountable expense allowance of $100,000 per year. Stewart spent $17,873 for the weekend use of a car service.

Lyne — who became CEO in late 2004 and led the company's recovery and is now spearheading its expansion — received a salary of $900,000 and compensation of $950,000 under a nonequity incentive plan. Lyne was awarded a cash bonus of $950,000 but opted to convert $100,000 of that amount into restricted stock units valued at up to $115,000.

Other compensation totaling $8,922 consisted of matching contributions made to Lyne's 401(k) account in the amount of $6,600 and life insurance premiums of $2,322 paid by the company in 2006.

A chunk of Lyne's compensation came from stock and option awards that the company valued at $419,119 on the day they were granted.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals that companies report.

Over the past two years, Martha Stewart Living has stepped up the number of initiatives, from new magazines like Blue Print to developing branded homes with builder KB Home and photo products with Eastman Kodak Co. The company expects a big revenue boost from the late summer launch of Martha Stewart Collection of home products that will be sold exclusively at Macy's stores and on

Martha Stewart Living's fourth-quarter profit increased more than fivefold amid a resurgence across its businesses. Revenues increased 15 percent.

For the year, Martha Stewart Living posted a loss of nearly $17 million, or 33 cents per share, compared with a loss of $75.8 million, or $1.49 per share, in the year-ago period. Revenues rose to $288.34 million from $212.4 million in the previous year.