Martha Stewart to be paid millions after jail

Martha Stewart, the American home-making entrepreneur convicted in relation to an irregular share trade, could be paid more than $2m (£1.11m) a year when she is released from prison under a new five-year employment contract with her company.

The deal is a boost for Stewart, who must report to prison by 8 October after she said last week she wanted to serve her five-month sentence as soon as possible rather than waiting until an appeal into her case is heard.

Stewart was convicted earlier this year of four criminal counts in a fraud trial that centred on a suspicious share trade in the drug company ImClone Systems. Stewart was found to have lied to investigators about the share trade, but she was not charged with insider dealing. Martha Stewart Living Omnimedia (MSLO), which was founded by the domestic guru, has agreed to pay Stewart a salary of $900,000, plus a bonus of between 55 and 150 per cent of her basic pay. In 2003, Stewart received $900,000 in base salary, and a bonus of $500,000.

While Stewart is not dependent on the cash - she is already a multi-millionaire - the deal with the company which bears her name marks a vote of confidence after a rocky period.

Shares in MSLO have surged in recent days, bringing its value to almost $1bn, after it emerged that Stewart has also signed a deal with the reality TV expert Mark Burnett.

Stewart is thought to be working on a TV show with Mr Burnett, who masterminded the American version of Survivor and also The Apprentice, a programme which has captivated America and features Donald Trump putting young would-be businessmen and women through their paces.

One retail analyst said of Stewart, who must follow her five-month jail term with another five months of house arrest: "She will come back bigger than ever before. This is America."

Stewart made an impassioned speech last week when she revealed that she did not want to take up an offer from the court to stay out of prison until her appeal against the ImClone Systems ruling had been heard.

She said she wanted to put the "nightmare" behind her by serving the sentence straight away in what will probably be a low-security centre near her home in Connecticut.

In the meantime, she said she would miss her "two beloved, fun-loving dogs, my seven lively cats, my canaries, my horses".

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

SThree: Talent Acquisition Consultant

£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

Recruitment Genius: Experienced Financial Advisers and Paraplanners

Negotiable: Recruitment Genius: This extremely successful and well-established...

Guru Careers: FX Trader / Risk Manager

Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...

Day In a Page

How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

How to stop an asteroid hitting Earth

Would people cooperate to face a global peril?
Just one day to find €1.6bn: Greece edges nearer euro exit

One day to find €1.6bn

Greece is edging inexorably towards an exit from the euro
New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

'Iron Man' augmented reality technology could become reality

Holographic projections would provide extra information on objects in a person's visual field in real time
Sugary drinks 'are killing 184,000 adults around the world every year'

Sugary drinks are killing 184,000 adults around the world every year

The drinks that should be eliminated from people's diets
Pride of Place: Historians map out untold LGBT histories of locations throughout UK

Historians map out untold LGBT histories

Public are being asked to help improve the map
Lionel, Patti, Burt and The Who rock Glasto

Lionel, Patti, Burt and The Who rock Glasto

This was the year of 24-carat Golden Oldies
Paris Fashion Week

Paris Fashion Week

Thom Browne's scarecrows offer a rare beacon in commercial offerings
A year of the caliphate:

Isis, a year of the caliphate

Who can defeat the so-called 'Islamic State' – and how?
Marks and Spencer: Can a new team of designers put the spark back into the high-street brand?

Marks and Spencer

Can a new team of designers put the spark back into the high-street brand?
'We haven't invaded France': Italy's Prime Minister 'reclaims' Europe's highest peak

'We haven't invaded France'

Italy's Prime Minister 'reclaims' Europe's highest peak
Isis in Kobani: Why we ignore the worst of the massacres

Why do we ignore the worst of the massacres?

The West’s determination not to offend its Sunni allies helps Isis and puts us all at risk, says Patrick Cockburn
7/7 bombings 10 years on: Four emergency workers who saved lives recall the shocking day that 52 people were killed

Remembering 7/7 ten years on

Four emergency workers recall their memories of that day – and reveal how it's affected them ever since
Humans: Are the scientists developing robots in danger of replicating the hit Channel 4 drama?

They’re here to help

We want robots to do our drudge work, and to look enough like us for comfort. But are the scientists developing artificial intelligence in danger of replicating the TV drama Humans?
Time to lay these myths about the Deep South to rest

Time to lay these myths about the Deep South to rest

'Heritage' is a loaded word in the Dixie, but the Charleston killings show how dangerous it is to cling to a deadly past, says Rupert Cornwell
What exactly does 'one' mean? Court of Appeal passes judgement on thorny mathematical issue

What exactly does 'one' mean?

Court of Appeal passes judgement on thorny mathematical issue