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  "documentTitle": "Sotheby's (BID)",
  "authorId": "07_Marcato",
  "authorName": "Marcato Capital Management",
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  "presentationDate": "2014-04-22 00:00:00",
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  "notes": "Uses a quote from the CFO to highlight the contradiction between cost-cutting claims and rising personnel costs.",
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      "kind": "callout",
      "text": "No reductions in the workforce are planned.",
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      "text": "Also, incentive compensation increased $3.7 million or 7% in 2013, due to the increase in Sotheby's profitability relative to prior years. In 2014, management expects that full-time salaries will increase by approximately 7% to 8% due to the full-year impact of last year's strategic headcount and salary increases as well as targeted salary increases expected to take effect in 2014.",
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      "text": "Based on its recently completed cost structure review, Sotheby's estimates $22 million in savings in professional fees, other general and administrative costs, direct costs of auction services and marketing expenses this year.",
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      "kind": "quote",
      "text": "Patrick McClymont, CFO of BID, Q4 2013 Earnings Call, February 27, 2014",
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      "text": "\"Also, incentive compensation increased $3.7 million or 7% in 2013, due to the increase in Sotheby's profitability relative to prior years. In 2014, management expects that full-time salaries will increase by approximately 7% to 8% due to the full-year impact of last year's strategic headcount and salary increases as well as targeted salary increases expected to take effect in 2014.\" — Patrick McClymont, CFO of BID, Q4 2013 Earnings Call, February 27, 2014",
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      "text": "Source: Sotheby's Capital Allocation and Financial Policy Review, January 2014. (1) Assumes $5m savings in direct cost of services based on a similar level of net auction sales as 2013.",
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      "text": "Where Are The Cost Savings? Expenses Are Still Growing",
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