Martha Stewart Essay

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The case “Corporate Governance at Martha Stewart Living Omnimedia: Not “A Good Thing” discusses the journey of Martha Stewart and her founded company ‘Martha Stewart Living Omnimedia’. It showcases the highs and the lows of MSO and the effect of imprisonment of Martha Stewart to the company. The case also discusses Martha Stewart’s attitude and compensation as being the owner of more than 90 percent of MSO’s shares. Lastly, the case focuses on how internal challenges loomed even larger with numerous failures of governance while the company attempted a turnaround.

Questions:
1. Discuss MSO’s corporate governance. Has the company been able to separate the ownership and managerial control?
The company faced crucial external difficulties, including
The fact that Stewart was convicted in 2006 did not stop her from taking over as CEO in 2011. This shows how entertainment business also boosted the growth of MSO. For corporate control, MSO should focus on adapting new age methodologies to expose material to the younger consumer and dive head-on into the fast paced marketing
For many of the company's employees, that would probably mean looking for a new job. But for those who'd like to see Martha retire with dignity, it would be a good thing.

Recommendations:
I would recommend Martha Stewart to let the board committees and directors act independently. I would also recommend her to synchronize her executive compensation to company’s performance. Merchandize being the strongest asset of MSO, I would recommend the company to invest and strategize accordingly. Considering the millennials, MSO should adapt the new age marketing media, apps, social media, etc. to reach the younger consumers.

Lessons Learned:
• How control of shareholder voting rights by a founding executive can undermine corporate governance
• The importance of independent directors and board committees
• The company bylaws affect corporate

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