Sotheby's experts threaten walkout

SENIOR experts at Sotheby's are contemplating a walkout after being excluded from 'golden handcuff' bonuses worth £14m. So dark is the mood at the troubled auction house's London offices that Sotheby's worldwide chief executive, Bill Ruprecht, flew into the capital this week to justify the selective payouts, it is claimed.

Despite suffering losses of nearly £30m last year Sotheby's has awarded the £14m to executives - believed to number around 90 - to ensure they remain loyal to the company.

One Sotheby's expert told the Evening Standard: 'It sounds like a carve-up to most of us and feelings are running high. There is talk that we should walk out for a week.'

Robin Woodhead, Sotheby's European and Asia chief executive, confirmed that Ruprecht is in London this week but denied it was to discuss the bonuses. He said the payments 'helped Sotheby's emerge as one of the world's strongest auction houses with a very good future'.

Meanwhile, in Brussels regulators have followed in the footsteps of the US authorities by accusing the world's two most powerful auction houses, Christie's and Sotheby's, of fixing prices in their auctioning of fine art.

In a statement, the European Commission said: 'The most important aspect of their agreement consisted of an increase in the commission paid by sellers at auction.' It added that the agreement also included other trading conditions, including advances paid to sellers, guarantees given for auction results and payment conditions.

The EU move is only a first step towards more formal legal action, and does not prejudge the outcome because the parties have the right of reply.

The Commission said it began its investigation in January, 2000, when Christie's approached both the Commission and the US Department of Justice with evidence of a cartel between itself and Sotheby's. At the time, Christie's applied for leniency in both jurisdictions. Under the rules of both the EU and the Justice Department the first party in a cartel to report the matter to authorities is entitled to leniency.