Martha Stewart lost her title yesterday, but she got to keep everything else – including her $1 million-plus salary and creative control over the company she founded.

As expected, the domestic diva resigned from the board of directors of Martha Stewart Living Omnimedia, and also stepped down as chief creative officer. She will take a full-time subordinate position of “founding editorial director.”

Essentially, the shift is a pre-emptive strike against the Securities and Exchange Commission, which is likely to bar her from serving as director or officer of a public company following her conviction for obstruction of justice and lying to investigators.

Lawyers spent last week crafting the title change, which keeps Stewart at MSO at least until her contract expires in October. No decision has been made as to what happens if Stewart goes to prison before then, a source close to her said.

Stewart also remains the company’s largest shareholder and retains full veto power over the board. Securities experts say there are no laws that can force her to divest of those shares, even if she goes to jail.

Under her contract, Stewart will likely receive upward of $1 million this year, not including bonuses and other fees. The company also will continue to pay half of its rental agreement, or about $1 million, for Stewart’s home, despite the fact that her television show has been canceled by CBS.

“I am taking this action today because it is in the best interests of MSO and because I think it’s the right thing to do,” Stewart said in a statement. “I am heartsick about my personal legal situation – and feel deeply sorry for the pain and difficulties it has caused our employees.”

MSO’s stock went down 3.5 percent yesterday to close at $9.97 a share.