Sotheby's CEO to decline $3m bonus

The chief executive of the company that runs the famed Sotheby's auction house received a $4 million bonus for 2002, but will not take a $3 million bonus for 2003 because the economy is weak.

William Ruprecht, the 47-year-old CEO of Sotheby's Holdings Inc., will decline his 2003 retention bonus, to which he is entitled by contract, "in light of current economic conditions and the compensation structure for other senior executives," according to Sotheby's proxy statement.

Mr Ruprecht also declined a performance bonus for 2002, the filing shows, but received a $500,000 salary, the same as in the prior two years, and $73,849 of other compensation. He had accepted a $650,000 bonus in 2001 and a $375,000 bonus in 2000, the filing shows.

In March, Sotheby's said "global economic uncertainties" and the Iraq war might hurt business in the current quarter.

The company for the fourth quarter of 2002 posted a $6.5 million loss, including a $20 million charge for its share of an international settlement of an antitrust lawsuit over price fixing. Rival Christie's also agreed to pay $20 million in the settlement.

Separately, Moody's Investors Service affirmed Sotheby's medium "junk" credit and debt ratings, after the company's controlling shareholders said they would not soon try to sell all or part of the company.