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Money | 06/11/2008 10:44 am

An Exclusive Interview With Martha Stewart CEO Just Ahead of Resignation Announcement

By Liz Peek
© AP

Editor’s Note: When wowOwow contributor Liz Peek interviewed Susan Lyne two weeks ago, she reported back to the editorial team that she sensed a change was in the air. Was she ever right. Today, Martha Stewart Living Omnimedia announces that Susan stepped down as CEO, with Wenda Harris Millard and Robin Marino taking over as co-CEOs. Read below and see if you sense the change yourself.

Susan Lyne is the outgoing president and CEO of Martha Stewart Living Omnimedia, the house that Martha built. Last year the company racked up revenues of $348 million from its popular cookbooks, housewares and media ventures, and it turned a profit for the first time in five years. Before joining MSLO, Lyne had been president of ABC-TV, a unit of Disney. Ironically, she was fired for sagging ratings only months before the wild success of “Desperate Housewives” and “Lost,” two shows that she had “greenlighted.” She stepped into Ms. Stewart’s very large shoes in 2004 when the founder went to jail, and has ably guided the recovering company through Martha’s absence and subsequent return.

In a recent chat with Ms. Lyne, she talked about her job, her children and of course about cooking. (After all, she does work for Martha.) She has had a lot on her plate, including the terrible loss two years ago of her husband George Crile, author of bestseller Charlie Wilson’s War.

Susan Lyne started out in the sixties writing for underground newspapers, repeatedly dropping in and, finally, out of Berkeley, and then rising in rapid succession from one media job to another. She plays tennis, never goes to the gym, has her daughters and stepdaughters over every Sunday night for dinner, shops the Valentino sample sales and admits to never having made a slipcover. In other words, she is a refreshingly normal person.

Ms. Lyne will likely move on in the next couple of years. The terms of Martha’s sentence preclude her from assuming her former role as CEO or being an officer or director of the company for another three years. That said, Ms. Stewart is still intimately involved with the company. There is no doubt in anyone’s mind that Martha will jump back into that role when allowed to do so. Having two alpha women on deck may be one too many.

24 Reader Comments (so far…) Sign In or Register to comment

ChipsAHoey
this is one of the reasons this site is called “wow”…
By ChipsAHoey on 06/11/2008 10:59 am
phyllisDoylePepe
Wow is right, Chips, she sounds like such a lovely woman and soooo capable.
By phyllisDoylePepe on 06/11/2008 12:01 pm
DianaT
Great interview! I just hate to see yet another question posed to a widow,”Are you dating yet”? Everybody’s different, and to have this kind of pressure put on her may be well meaning, but completely out of line. It is rather akin to asking a childless couple when they are going to start their family.
By DianaT on 06/11/2008 11:00 am
DrMarkKlein
I’m impressed MSLO drew 150 retail shareholders to the annual meeting. That’s about same number GE draws. To save face the company packed the meeting hall with employees and retirees. With children in the same age bracket as hers I’m very concerned how little economic value college degrees have.
By DrMarkKlein on 06/11/2008 11:14 am
JohnAgno
Today, it is no longer about the lack of a level playing field for women to successfully compete in the executive suite. It’s really about women executives not shooting themselves in the foot due to a lack of leadership capability. By developing effective leadership skills, from becoming more self-intelligent and emotional-intelligent to understanding how their behavior is perceived by their direct reports and peers, female executives can achieve success in the executive suite. If leaders don’t make smart judgment calls about people on their teams, or they manage them poorly, then there is no way they can set a sound direction and strategy for their department, business unit or enterprise, nor can they deal effectively with crises. The most critical knowledge a woman executive needs is self-intelligence or an awareness of her personal beliefs/assumptions, values, guiding principles and vision. And being emotionally intelligent about knowing how the people in the organization will respond, adapt and execute matters. Women executives can also fail when they lack contextual knowledge due to not knowing the territory; commonly referred to as the corporate culture. This knowledge gap can lead to difficult problems from direct reports to the board of directors. Every department, business unit, division and enterprise has a culture that the leader must respect or the culture will push the leader out.
By JohnAgno on 06/11/2008 11:32 am
ChipsAHoey
I don’t necessarily disagree that any leader needs those intelligence and judgment skills you mentioned but posting it here implies you may think that Lyne does not possess these qualities? I don’t see that she lacks those capabilities from reading this article - she seems right at home and has done well for herself in the corporate culture - but maybe I missed something in this article that you saw otherwise…
By ChipsAHoey on 06/11/2008 1:32 pm
BrooklynGal1
John, What you say is also true tor men, in fact for everyone, not just women. What impressed me about this interview was the fact that with such a high-power (and pressure) job, she still makes time for Sunday dinner with the family. When I was younger, Sundays were always spent with my parents and grandparents and we would have a big Italian meal around 1pm. That was the tradition back then. Today with both parents working and kids having so many after-school functions and weekend plans, it’s hard to plan a weekly get together. Those Sundays were special to me.
By BrooklynGal1 on 06/11/2008 1:36 pm
Tothebeach
Martha Stewart, Susan Lyne, these are household names. And yours, John? When a man tries to throw his weight around by writing such elementary things, i.e.: “commonly referred to as the corporate culture,” 1) What an insight. 2) Shows he doesn’t walk his talk.
By Tothebeach on 06/11/2008 2:22 pm
DeniG
Could you please change the ‘women’ to ‘people’, adjust the pronouns and send it off to and Bush & Co.
By DeniG on 06/11/2008 4:25 pm
ChipsAHoey
hahaha - great answer, Deni!
By ChipsAHoey on 06/11/2008 6:15 pm
PegOmyheart
Deni - LOVE your response! Like Aaron Neville said “Tell it like it is” . :-)
By PegOmyheart on 06/12/2008 1:05 pm
DeniG
Thanks Chips! Hi Peg!!!!
By DeniG on 06/13/2008 12:22 am
JosieSullivan
Mr Agno- Why do you single women out as not having these qualities? Why even go there with us on a women’s site. I half way expect you are one of the men that say darlin’ to a woman in the board room…. “don’t busy your little mind with it darlin’!” You want to talk about self-intelligence? Go sing your song to President Bush because here you are way off key and the notes you are trying to belt out are hurting my ears. It may not be about women shooting themselves in the foot but more likely it’s about men like you (the peers you speak of) shooting them in the back.
By JosieSullivan on 06/11/2008 7:22 pm
DrMarkKlein
John—Good post. A very successful investor my worst performers in recent years were companies which promoted in my opinion unqualified women to top positions. This has been especially true with the banks. Bank of America down almost 50% from over a year ago has a female chief risk officer. Battered Citgroup had a female CFO during the period of its worse credit excesses. Was a little late in the day for Lehman to ditch CFO Erin Callen today. As a matter of investment policy I will not own companies with women CFOs or CEOs.
By DrMarkKlein on 06/12/2008 2:27 pm
EstherBradleyDeTally
Just checking in with admiration for such a lovely lady and huge wishes for a wonderful future!
By EstherBradleyDeTally on 06/11/2008 1:44 pm