Chairman at Martha Stewart’s Firm Steps Down

Martha Stewart Living Omnimedia Inc. said Tuesday that venture capitalist Jeffrey Ubben had stepped down as chairman of the company after 14 months in the post in the wake of Stewart’s stock trading scandal.

The company has “weathered a most difficult period associated with Martha Stewart’s personal legal situation,” Ubben said in a news release, adding that he wanted to turn the chairmanship over to “someone who has the skills and, most importantly, sufficient time available to guide the board and the company forward from this point.”

Thomas Siekman, a lawyer and former Compaq Computer Corp. executive, was named to succeed him.

Ubben, whose company ValueAct Capital Partners is a primary investor in Martha Stewart Living Omnimedia, will remain on the board, on which he has served since Aug. 1, 2003.

A source close to the matter said the decision was an attempt to move the company beyond Stewart’s legal woes to focus on growing the company’s media properties and improving its brand image.

In addition, the company announced the resignation of Arthur Martinez, former chairman and chief executive of Sears Roebuck & Co., from the company’s board. Martinez had been serving as lead director. Martinez had been on the board since 2001. No reason was given for his departure.

Martinez will be replaced on the board by Charles Koppelman, chairman and CEO of CAK Entertainment, a music and entertainment business. Stewart remains the majority shareholder in the company and, despite lacking a board seat, maintains considerable clout.

Martha Stewart Living Omnimedia shares fell 7 cents to $10.93 Tuesday on the New York Stock Exchange.