There was no official reason given why Martha Stewart Omnimedia (NYSE:MSO) CEO Susan Lyne stepped down, but from the time she took over the company, until today, the stock has plunged by three-quarters of its value. She will also be stepping down from her position as president.
When Lyne stepped into the CEO role, the stock was trading at around $37, in February 2005. As of the middle of Wednesday, the stock was down to $7.40, which is on the low end of a 52-week range. Lyne has headed the company since the latter part of 2004.
Concerning her departure Lyne said, "While there is never a perfect time to depart, the company is on sound footing and we expect the transition to be very smooth."
She will stay on as a director and advisor during the transition period. Officially Lyne will leave at the end of 30 days.
Replacing Lyne will be Robin Marino, who is now president of merchandising, as well as Wenda Harris Millard, who is president of media at the company at this time. The two will be co-CEOs.
In all fairness to Lyne, she had an uphill battle with the legal baggage surrounding Martha Stewart, which made it a very difficult task to regain credibility and draw advertisers to the tainted brand.
Last year Martha Stewart Living managed to end up with a little profit, as it brought in $10.3 million, or 20 cents a share. That was an improvement over the $17 million loss they suffered in 2006, or 33 cents a share. Revenue in 2007 grew to $327.9 million, a 14 percent increase.
» Martha Stewart Living Omnimedia will have Co-CEOs after Susan Lyne's Departure from ManagersRealm
Today it was announced that Susan Lyne, CEO and president of Martha Stewart Living Onmimedia (NYSE:MSO), will be stepping down in her role at the company. She'll stay on as an advisor and director for 30 days to help during... [Read More]
Tracked on: June 11, 2008 1:58 PM | Permalink to Trackback