Sotheby's to Offer Voluntary Buyouts
November 16 2015 - 2:20PM
Dow Jones News
Sotheby's said it would offer voluntary buyouts to cut its head
count and compensation costs.
The buyouts, expected to be completed in the first quarter of
2016, are being offered to "most Sotheby's employees in
jurisdictions where it is practical to do so," according to a
Securities and Exchange Commission filing. It said employees'
decisions to be bought out would be accepted only if management
approves.
Sotheby's said the related severance costs are expected to hit
fourth-quarter results and cannot be estimated yet.
Shares of Sotheby's were down 1.3% in midday trading Monday.
The venerable auction house has had a roller-coaster few years,
welcoming former sports executive Tad Smith as its new chief
executive in March amid increasing clamor from activist
shareholders calling for a leaner, more profitable business.
Each buyout participant will be entitled to receive severance
benefits based on the participant's position, years of service and
base pay, and includes, in certain circumstances, continued vesting
of equity awards. The cash severance payment will be made in a
single lump sum payment as soon as possible after termination.
Last week, Sotheby's posted stronger-than-expected results and a
loss that narrowed compared with the same period a year ago,
boosted by inventory sales and the performance of its finance
segment.
The company said, however, that while net auction sales
increased by 15% to $48 million during the quarter because of the
favorable scheduling of a contemporary art sale, commission
revenues decreased mostly because of weaker sales in higher-margin
categories such as old master paintings, Asian art, and
jewelry.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 16, 2015 14:05 ET (19:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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