Teamsters' Call To Reform Sotheby's Executive Pay Supported by ISS and Glass Lewis

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International Brotherhood of Teamsters

May 03, 2012, 10:07 ET

Leading Proxy Voting Advisors Recommend Shareholders Vote FOR Teamster Shareholder Proposal; ISS Also Urges Sotheby's Investors Vote FOR CEO Succession Planning Proposal

WASHINGTON, May 3, 2012 /PRNewswire-USNewswire/ -- ISS and Glass Lewis, the nation's leading proxy voting advisory services, are supporting the Teamsters Affiliates Pension Plan's shareholder proposal on reforming executive pay in their voting recommendations for Sotheby's (NYSE: BID).

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The Teamsters proposal seeks to curb a compensation practice that does not enhance shareholder value – the automatic accelerated vesting of equity awards in the event of a change-of-control. It states that any vesting in a change-of-control must be on a pro-rata basis and if there were performance goals tied to the equity award those goals must be met. ISS, in its analysis of the current policy, reports that Sotheby's CEO William Ruprecht would potentially receive more than $12 million in a change-of-control event.

"There is no rationale for the company's current policy that protects the interests of investors," said Ken Hall, International Brotherhood of Teamsters General Secretary-Treasurer. "It is just another scheme to put more money in the pockets of executives."

ISS also advises Sotheby's shareholders to support a proposal from the Central Laborers' Pension Fund calling for the Sotheby's Board to adopt and disclose annually a CEO succession planning policy.

Founded in 1903, the Teamsters Union represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamsters.org for more information. Follow us on Twitter @TeamsterPower.

SOURCE International Brotherhood of Teamsters