Carpenter will remain as an "employee available for special projects at the request of our CEO and board of directors through December 21 2002", according to the company's quarterly report.
In August last year, Carpenter stepped aside from the CEO's position and became chairman of the board. She was replaced as CEO by Douglas McCormick, former president of iVillage.
The company report said, "Ms Carpenter received $1,327,900 (£930,684) -- less an interest payment of $27,900 (£19,554) on her promissory note to us -- in lieu of the salary, bonus and other payments set forth in her October 2000 agreement with us, and will receive a monthly salary of $3,100 (£2,172) in 2001 and $2,325 (£1,629) in 2002."
The UK version of iVillage is operated as a joint venture with supermarket group Tesco and recently became the UK's most-visited women's site.