Sotheby's CEO Salary Restored

Philip Boroff writing for Bloomberg states that Sotheby's CEO, William Ruprecht had his full salary restored last month.  This is after a good 4th quarter, and much cost and expense cutting during 2009. In May of 2009 Ruprecht had his salary reduced  by $100,000.00 from $700,000.00 to $600,000.00 (keep in mind compensation packages include much more than just salary).  Three other Sotheby's executives who had their salaries reduced were also restored.  Some investors/shareholders questioned the move as being too soon, as the auction house still had a net loss for 2009 of over $6 million.

Boroff reports

Ruprecht, 54, who started at the company three decades ago as a typist in the rug department, responded: “Putting a couple of million dollars of cost back into the business for having saved over $160 million in annual costs is a deal I’ll make every day of the week.”

He called the 10-month salary cut “a symbol primarily of personal commitment to the organization as we drove an awful lot of change through the business.”

Graef Crystal, a compensation specialist and columnist for Bloomberg News, said Sotheby’s deserves credit for cutting salaries in the first place.

“That’s unheard of,” he said.

While Sotheby’s “is trying to hew to some pay-for- performance standard,” he called the latest results mixed.

In 2008, Ruprecht received a package valued at $6.4 million, which included car and driver, life insurance premiums and club membership dues. The year before, Sotheby’s earned a record $213 million and he was paid $10.3 million in cash and benefits.

No Cash Bonus

Ruprecht’s total 2009 compensation will be disclosed in the next few weeks. Indications are that it will be relatively modest. Sotheby’s already said it awarded him $1.4 million in stock that vests over four years, the minimum annual grant he’s entitled to under his contract. He requested that he not receive a cash bonus.

To read the full article, click HERE.