Stewart Resigns from Omnimedia Board

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Martha Stewart resigned from the board of her namesake company Monday and gave up her position as chief creative officer.

The move sparked an almost 5% slide in the stock of Martha Stewart Omnimedia Inc. to $9.98 in morning trading on Monday.

The company said Stewart was named to the new position of founding editorial director and will report to CEO Sharon Patrick. Stewart gave up the CEO post last year.

"I am taking this action today because it is in the best interests of [Omnimedia] and because it’s the right thing to do," Stewart said in a statement.

She added that she was "heartsick about my personal legal situation-and deeply sorry for the pain and difficulties it has caused our employees."

Two weeks ago, Stewart was convicted on four counts stemming from an insider stock trading case. She could face 20 years in prison if the conviction stands, though she has indicated that she will appeal.

Also Monday, Omnimedia is reported to be considering a name change for monthly magazine Martha Stewart Living to Everyday Living. The company has not confirmed those reports.

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