In the latest Sotheby’s shocker, the auction house has just announced that its chief financial officer, Patrick McClymont, is precipitously stepping down. He will resign, effective Dec. 31, to pursue the proverbial “other opportunities.”
Looks like it’s going to be another costly severance.
According to today’s 8-K SEC filing:
Upon his scheduled departure from the Company and subject to his delivery of a general release, Mr. McClymont will receive $3,750,000 in cash severance and will be entitled to continued vesting of his 26,261 performance share units and 14,517 restricted stock units. In addition, Mr. McClymont will be entitled to the cash portion of his 2015 incentive bonus.
This departure, with no permanent successor in place, does not sound like a welcome development for a company with declining stock prices, cost-cutting (but expensive) headcount reductions and the fallout from the big risk on the the dicey Taubman deal that so far doesn’t appear to be paying off.
Serving as interim CFO, effective Jan. 1, is Dennis Weibling, a member of Sotheby’s board since 2006, who is chair of its audit committee. He has served as the managing director of Rally Capital, LLC, a private equity fund, since 2004. McClymont “will remain with the company until January 31, 2016 to ensure a smooth transition,” according to the press release.
Before coming to Sotheby’s, McClymont had been (since 1998) a partner and managing director in investment banking at Goldman Sachs.
Is there a spot waiting for him there?