By Jeff Lipton
Steve Madden, Ltd. was named "Company of the Year" for 2006 at the Footwear News Achievement Awards in New York City on Dec. 5. Footwear News, the authoritative publication in the industry, cited the company's popular shoe designs, expansion into new licensed categories and introduction of new footwear lines as key factors for its success.
In accepting the award on behalf of the company, Madden briefly acknowledged that he and the company have had to overcome obstacles to reach further success. In his acceptance speech, he said, "That you - our company's employees - are
Steve Madden, and to get this award after all that this company has been through is "truly amazing and providential."
In continuing to address the company's employees during the awards ceremony, he added, "Being awarded 'Company of the Year' is a fantastic achievement - something all of you should be very proud of. You all work so hard and you made this happen, and as a result, we are all part of something very special. Thank you, and let's go get it again next year."
Madden, 49, grew up on Rand Place in Lawrence and graduated from Lawrence High School.
In May 2001 Madden pleaded guilty to two counts of money laundering and securities fraud, but neither involved the stock of Steve Madden, Ltd. He was sentenced to up to three and a half years in a Florida prison, which he began serving on Aug. 15, 2002. But he was released after two years for good behavior.
Madden was also forced to pay more than a half-million dollars in fines.
Before he was sent to prison, Madden relinquished his title as CEO to longtime friend and fellow Five Towner Jamie Karson, but has continued to design footwear for the company. Under an agreement, Madden could not retain his role as CEO for seven years. Winograd said the agreement will expire in about 18 months, but he's not sure what Madden will do once that happens.
With his legal troubles behind him, Madden was married for the first time last January, and his company has flourished, with its stock recently selling at $35.63 per share.
Madden has said that he has learned from his mistakes of the past, which included being led astray by his old high school buddies, whom he remained acquainted with and got him into legal hot water.
Winograd said there was never any doubt that Madden would turn his life around so quickly.
"Of course, he's a talented guy and there was never a question that he would make a turnaround, and he did," Winograd said. "The company is doing wonderfully, with record sales. Steve's in charge of design and fashion for the company and he has many brilliant ideas for shoes. He's doing great, better than ever.
"And he's been alcohol-free for a long time," Winograd said, adding that he has helped counsel others with alcohol problems, among his many other charitable endeavors.
Winograd called Madden's past legal troubles "a very traumatic learning experience."
After the company received the award, Karson said, "We are honored to be selected as 'Company of the Year.' This achievement was made possible by incredible teamwork across all areas of our company, which allowed us to grow our core business while at the same time diversify into exciting new categories. We are very proud of our accomplishments to-date. That said, we are focused on leveraging our solid momentum, driving further growth, and positioning Steven Madden, Ltd. for a solid future."
Steven Madden, Ltd. designs and markets fashion-forward footwear and accessories for women, men and children, and owns and operates 96 retail stores, with the goal of opening about 10 new stores a year.
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