Analysis: Martha Isn't Doing Her Company Much Good

One of the biggest problems Martha Stewart Omnimedia Living has is Martha herself -- at least according to the analysts and "current and former employees [who] asked not to be named to avoid retaliation" cited by  James B. Stewart. "Her net worth is inextricably tied to the value of the shares. That would seem obvious to everyone except, perhaps, Ms. Stewart herself," writes Stewart.  "She continues to collect lavish multimillion-dollar compensation and perks while her company teeters under the weight of huge losses, its shares trading for a fraction of their former value. The paradox is that if the stock had risen even $1 a share in recent years, Martha Stewart would be wealthier now than if she had taken only nominal compensation from the company."

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