Stewart Gives Up Titles but Not Role

Martha Stewart handed over her keys to the executive suite of the media empire she built Monday, a little more than a week after she was convicted on four federal charges.

But she’s not cutting ties to the multimillion-dollar business that grew from a suburban Connecticut catering business.

Stewart stepped down from her board seat and gave up her chief creative officer title but will still retain a creative role at Martha Stewart Living Omnimedia Inc., indicating that company officials believe they’ll be better off with her than without her.

The self-made queen of domestic arts -- whose name has been stamped on magazines, TV shows and household products -- will take the title of founding editorial director.

Stewart, 62, will continue to provide inspiration for new product design and development and provide input on the company’s brand and strategic issues, the company said. She will report to Chief Executive Sharon Patrick.

“Everyone at MSO recognizes the seriousness of Martha’s situation and is deeply saddened,” Patrick said. “However, all of us also believe that the company and our constituencies benefit most if we are able to continue to take advantage of Martha’s creative inspiration and capitalize on her prodigious skills and experience in the domestic arts.”

The logistics could be tricky, at least in the short term, as Stewart probably faces 10 to 16 months in prison when sentenced. Stewart has said she would appeal the March 5 conviction.

In a statement, Stewart said Monday’s action was “in the best interest” of the company.

“I am heartsick about my personal legal situation -- and deeply sorry for the pain and difficulties it has caused our employees,” she said. “I look forward to continuing to collaborate on a wide range of creative ideas with the amazing, talented and hardworking people at this very special company.”

Stewart, who is the company’s largest shareholder, had been expected to relinquish her board seat but reportedly had been pressing to keep some creative nonofficer role. Had she not stepped down, her departure from the board and any executive position probably would have been forced by the Securities and Exchange Commission.

Stewart resigned as chairwoman and CEO in June, after she was indicted on charges related to her well-timed sale of stock in biotechnology company ImClone Systems Inc. in December 2001.

Shares of Martha Stewart Living fell 36 cents to $9.97 on the New York Stock Exchange.