Bill Ruprecht

COMMENT: As the saying goes, turnover is vanity, profit is sanity. Hold that thought as you consider the announcement that Bill Ruprecht is to stand down as CEO of Sotheby’s after nearly 15 years.

BILL Ruprecht is to stand down as chief executive, chairman and president of Sotheby’s as soon as they find a replacement.

Sotheby’s board have acted to fend off criticism from shareholders led by hedge fund billionaire Daniel Loeb by saying they will issue a $300m special dividend in March.

Daniel Loeb, whose Third Point hedge fund has acquired almost 10% of Sotheby’s stock, has called for the auction house’s chief executive and chairman, Bill Ruprecht, to step down.

PABLO Picasso’s Garçon à la pipe boosted Sotheby’s second quarter sales considerably, alone accounting for about 9.5 per cent of the total.

Choosing to concentrate upon their auction business, Sotheby’s Holdings, Inc., have sold their real estate brokerage operations to Cendant Corporation. The total cash purchase price for the luxury brand and a 100-year licensing agreement was approximately $100m, plus ongoing fees based on future royalties from the development of a franchise business planned under the Sotheby's International Realty name.

SOTHEBY’S chief executive Bill Ruprecht is bullish about the company’s second quarter performance, reporting a 25 per cent increase in net income on the same period last year.

Sotheby’s chief executive Bill Ruprecht has also become chairman of the company with immediate effect following Michael I. Sovern’s decision to step down after 13 years.