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Sotheby's Open Letter to Shareholders Regarding Third Point’s Board Nominees

March 15, 2014 | About:

SOTHEBY’S SENDS OPEN LETTER TO SHAREHOLDERS

  • Sotheby’s Has the Right Plan and the Right Team to Continue Building Sustainable Value for Shareholders and Clients
  • Sotheby’s Concludes Third Point’s Nominees Add No Relevant Expertise Not Already Represented on the Board of Directors

NEW YORK, 13 March 2014 – Sotheby’s (BID) today issued the following open letter to shareholders regarding its nominees for the Board of Directors and the notice from Third Point LLC submitting nomination of three candidates (the “Third Point Nominees”) to stand for election to Sotheby’s Board at the Company's 2014 Annual Meeting.

Highlights of the letter include:

  • Sotheby’s is a market leader with superior shareholder returns and record results.
  • Sotheby’s benefits from a solid financial foundation appropriate to the needs of the business.
  • Your Board has the strength, diversity, experience and qualifications to continue to provide effective and independent oversight and direction.
  • Your Board is committed to sound corporate governance policies and practices.
  • Sotheby’s has engaged frequently with Third Point and other shareholders, and your Board is committed to doing what is in the best interests of ALL Sotheby’s shareholders. We believe shareholders should question whether Mr. Loeb will do the same – putting ALL shareholders’ interests first.
  • Sotheby’s Board has concluded that Mr. Loeb’s nominees add no relevant skills, experience or expertise that is not already effectively represented on the Board.
  • Sotheby’s has the right Board, the right leadership team and the right strategy in place to deliver value for ALL Sotheby’s shareholders now and over the long term

Dear Sotheby’s Shareholder:

The Nominating and Corporate Governance Committee of Sotheby’s Board of Directors has carefully considered the director nominations put forth by Third Point. The composition of your Board is something Sotheby’s takes very seriously, as the experience and expertise of its directors have been and will continue to be important to enabling the Company’s success.

Indeed, under the leadership and guidance of your Board of Directors, Sotheby’s has delivered strong financial performance and superior shareholder returns, including a total shareholder return of 32.5% over the last year. Your Board is independent, active, engaged and focused on shareholder value. We believe your Board has the skills and expertise necessary to continue Sotheby’s track record of success.

In contrast, we believe the Third Point Nominees – Daniel S. Loeb, Olivier Reza and Harry J. Wilson – add no experience or expertise that is not already represented or that is relevant to the Company’s business, strategies or goals. Accordingly, based on the recommendation of the Nominating and Corporate Governance Committee, the Board has unanimously determined to reject the Third Point Nominees.

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