Martha Stewart and the company that bears her name, Martha Stewart Living Omnimedia (NYSE: MSO ) , have agreed to amend her employment agreement signed in 2009, reducing Stewart's annual base salary by $200,000 to $1.8 million, according to a recent SEC filing. Stewart's lower annual salary became effective on July 1 and will remain in force until June 30, 2017.
In addition to the decline in annual salary, Stewart agreed to a lower payout as part of the Intangible Asset License Agreement, or IAA, entered into in June 2008. According to the SEC filing, Stewart will receive an annual payment of $1.7 million under the new IAA agreement, a reduction of $300,000. The lower IAA payment becomes effective on Sept. 15, the next scheduled annual payment. The new IAA will remain in effect until Sept. 15, 2017.
Martha Stewart Living Omnimedia said the amended employment agreement and IAA are "consistent with their plan to return Martha Stewart Living Omnimedia to profitability."