Sotheby's chief to step down after Loeb battle

William Ruprecht, the chief executive of Sotheby's for 14 years, will step down, six months after the auction house ended a bitter proxy battle with billionaire activist investor Daniel Loeb.

Sotheby's had begun a search for a replacement and Ruprecht would continue as chairman, president and chief executive until a successor was found, the auction house said on Thursday.

The decision was by mutual agreement, it said.

"The board is focused on ensuring a smooth transition that will facilitate Sotheby's continued success," said Domenico De Sole, the board's lead independent director who is heading the search committee. "We are moving with a sense of urgency but we will take the time we need to find the right leader for Sotheby's."

Ruprecht had been under pressure from Loeb to cut costs and increase shareholder value since last year. A proxy fight ended on May 5 when Sotheby's agreed to appoint Loeb, founder of the Third Point hedge fund, and two of his candidates to its board.

In a June letter to Sotheby's shareholders, Loeb said the board stood "behind the management team led by Bill Ruprecht".