Martha Stewart Out as CEO and Chairwoman

Shortly after her indictment by a federal grand jury, Martha Stewart decided to step down Wednesday evening as chairwoman and CEO of her namesake company in what may be the best decision of a bad lot of choices for her and the company.

Stewart, who is facing federal criminal and civil charges, will remain with Martha Stewart Living Omnimedia (MSO Quote) as a director and as its new chief creative officer.

The move allows the company to put some distance between it and her while still retaining Stewart's cachet, said Seth Taube, chairman of the securities litigation department at law firm McCarter & English. ...