Stewart becomes non-executive chairman of company

Martha Stewart is now the non-executive chairman of the lifestyle, media and merchandising company that she created.

Stewart, who rejoined the board of Martha Stewart Living Omnimedia Inc. in September, succeeded Charles Koppelman on Wednesday. Stewart agreed to a five-year ban on serving as a board member or as an executive of a public company as part a settlement with federal regulators.

Stewart was convicted in 2004 on federal criminal charges of lying to prosecutors about selling ImClone shares a day before the Food and Drug Administration announced it declined to review an ImClone application for a cancer drug. She served five months in prison.

Shares of the New York company fell 7 cents, or 2.2 percent, to $3.14 in Wednesday afternoon trading.