Stewart Quits NYSE Board Amid Probe
Martha Stewart, a former stockbroker who built a media company around her homemaking prowess, quit the board of the New York Stock Exchange on Thursday amid an investigation into her sale of ImClone Systems Inc. shares.
The 61-year-old Stewart’s resignation is a sign the insider-trading probe is hurting her image, some analysts said. In July, she gave up her appearances on CBS television’s “The Early Show” because she didn’t want to answer questions about the probe.
“The NYSE must have members on the board who are above suspicion and reproach of any kind, and obviously she doesn’t fit that category at this point in time,” said Hal Vogel, a media analyst with Vogel Capital.
A board panel will meet to select a potential replacement over the next few weeks, NYSE Chairman Richard Grasso said.
Shares of Martha Stewart Living Omnimedia Inc. have plummeted 67% since June 6, the day before a congressional panel said it was investigating Stewart’s ImClone sale. Martha Stewart Living shares dropped 59 cents to $6.21 in NYSE trading Thursday.
