Proxy Advisory Endorses Dan Loeb’s Art Expertise

ISS thinks that Sotheby’s shareholders should give Dan Loeb exactly twice as many seats as he could have had without engaging in a proxy fight. Glass Lewis, less so.

Mr. Loeb gained a significant ally in his campaign Thursday when Institutional Shareholder Services Inc. recommended he be elected to Sotheby’s board. Rival advisory firm Glass, Lewis & Co., however, said Mr. Loeb hasn’t built a strong enough case for a board makeover and recommended in favor of the company’s management….

“It is difficult to believe this is a board keenly attentive to all the opportunities at hand to enhance shareholder value,” ISS wrote.

The advisory firm backed two of Third Point LLC’s nominees, Mr. Loeb and Olivier Reza, head of jeweler House of Alexandre Reza, to join the board, but it rejected a third nominee, Harry J. Wilson….

The Glass Lewis report, meanwhile, found that while Sotheby’s still has room for improvement in some areas of operating performance, the company has been proactive about returning cash to shareholders. The report said Mr. Loeb “identified certain areas of concern, but ultimately has fallen short of making a compelling case that additional changes in the boardroom are warranted at this time.”

Proxy Advisers Offer Differing Opinions on Dan Loeb’s Election to Sotheby’s Board [WSJ]

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