A NEW sense of intrigue gripped the Conde Nast empire yesterday in the wake of the sudden “resignation” of longtime company veteran Cathy Viscardi Johnston late Monday night.
CEO Steve Florio, a longtime ally of the executive vice president, appeared at work yesterday morning but went home early and is not expected back in the office for the rest of the week.
One scenario said he was ordered to take the rest of the week off by S.I. Newhouse Jr., the chairman of Conde Nast and its parent company, Advance Publications.
Conde Nast spokesperson Maurie Perl said, “He was not feeling well. He has the flu.”
It is beginning to appear that whatever happened to cause Viscardi Johnston’s sudden departure late Monday was done over Florio’s head.
Florio has frequently described Viscardi Johnston as his “best friend.”
That close relationship obviously helped her to advance but some said it did not help in the final showdown, which appears to have been orchestrated by S.I. Newhouse Jr.
On Monday night – the night the resignation was announced – Florio snubbed the family by not showing up at the benefit Career Transitions for Dancers benefit, a favorite charity of the Newhouse family and one of the few that brings the clan together from around the world.
Jonathan Newhouse, the head of Conde Nast International and already seen as Florio’s heir apparent as head of the domestic Conde Nast empire, was in attendance. He brushed aside questions about any imminent return to New York City on a permanent basis.
The latest palace intrigue had all the earmarks of a corporate firing.
One scenario had Viscardi Johnston still angry that Richard “Mad Dog” Beckman had not been axed as publisher of Vogue following an incident that left Carol Matthews, West Coast ad director, with a broken nose. Conde Nast reached a seven-figure settlement with her, but Beckman kept his job.
When her protests fell on deaf ears, she either tendered her resignation or was forced to tender it, insiders said.
Another scenario says she was blamed for some disappointing ad sales results earlier in the year.
Calls to the Johnstons’ home Monday and yesterday were not returned. Florio declined comment. Speculation now turns to the eventual replacement for Viscardi Johnston, who was the company’s top ad sales executive.
In-house candidates are rumored to include Mitchell Fox, the publisher of Vanity Fair and Mary Berner, the publisher of Glamour.
Company spokesperson Perl said only, “we expect to name a replacement sometime next week.”
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The issue covering the death of John F. Kennedy Jr. has become the best-selling edition of Time magazine in history, selling an estimated 1.3 million copies on newsstands.
It topped the previous bestselling regular issue, during September 1997, covering the death of Princess Diana. That issue was the first to sell more than 1 million copies on newsstands.
Kennedy died along with his wife, Carolyn Bessette, and his sister-in-law, Lauren, when his plane plunged into the water off of Martha’s Vineyard on July 15.
*It may be “Let’s Make a Deal” time for Time Inc. and Martha Stewart.
Martha Stewart Living Omnimedia in March repaid the $30 million loan Time Inc. Ventures put up so she could buy out majority control of the company in 1997.
But Time Inc. still had a big minority stake separate from the old loan.
Martha wants to pay Time Inc. $41.7 million for the remaining stock, which constitutes just over a 5 percent equity stake. At the closing price yesterday, those Time Inc. owned shares were estimated to be worth $81.1 million.
Martha’s offer is on the table. Time Inc. has 120 days from the Oct. 19 IPO to decide whether to accept, confirmed officials at both companies yesterday.