|MSLO Chairman Charles Koppelman is the 'Three Million Dollar Man' of 'The Apprentice: Martha' show.
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According to Securities and Exchange Commission documents released yesterday, Mr. Koppelman, who appears as a cigar-chomping judge on the show, will be eligible for the payout if certain targets are met. Martha Stewart and her daughter Alexis are the other two judges on the reality show created by Mark Burnett Productions.
Mr. Koppelman will receive an annual compensation of $725,000, up from $450,000 as per a previous consultancy agreement signed in January. Mr. Koppelman’s new contract, signed through his company, CAK Entertainment, will also give him 75,000 restricted shares that will vest over time. Each share would be worth $20.35 based on the MSLO stock price on Oct. 21, the date of the new contract, or around $1.5 million.
He will also have options to buy a further 200,000 shares in the company. Among his roles at the company are to “source, structure and negotiate merchandise and television opportunities.”
Music business ties
Mr. Koppelman joined as a company director in July 2004, became vice chairman that December and was named chairman on July 17. His background is in the music business, which has already proved useful in his new job. Earlier this month, MSLO struck a deal with Sony BMG to create a series of holiday-themed CDs under the label Martha Stewart Living Music.
Each collection will include recipe cards, decorating tips and craft ideas. The first, “Martha Stewart Living: Holiday Collection,” was released Oct. 18. Mr. Koppelman was CEO of EMI Records Group, North America, from 1994-97 and once released a record as part of a '60s trio called Ivy Three.
Separately, MSLO will release third quarter earnings on Oct. 27. According to the company’s Web site, a 24-hour Martha-branded radio station is set to launch on Sirius Satellite Radio this fall, though no precise date has been given.
Mark Burnett's stake
During the second-quarter earnings announcements in July, the company said it would take a $16.8 million non-cash charge related to warrants held by executive producer Mark Burnett.
Martha Stewart is featured in two new TV shows this fall. The first, The Apprentice: Martha, has struggled to become a hit, though it has built on its initial audience. The double dose of The Apprentice looks to be affecting the ratings of the original version of the show starring Donald Trump, who said as much last week in an interview with ABC Radio.
'Apprentice' misses ratings guarantee
The Apprentice: Martha, which airs in a tough time period opposite ABC’s Lost at 9 p.m. Wednesdays, garnered a 2.6/6 rating or 6.8 million viewers in the 18- to 49-year-old demographic on its Oct. 19 outing. Media buyers were guaranteed a 5 rating, according to media-buying executives.
Through Oct. 16, the second TV project, a daytime syndicated show simply called Martha, is averaging about 1.9 million overall viewers, with a 1.7 rating for all households, and a 0.5 rating for 18- to 49-year-olds.