Melbourne laywer and former Deputy Mayor Gary Singer has been appointed chief executive officer of First East Auction Holdings Pty. Ltd. (FEAH) and Sotheby's Australia Pty Ltd.
The job, however, is only temporary. It is expected to last for three months and it does not come with a directorship. Singer will head the search for a full time CEO and also lead a review into the group's operations.
Singer was a very able fellow, the executive chairman of the two companies, Tim Goodman, told the Australian Art Sales Digest.
This opinion was echoed by John Mowbray, managing director of Mowbray Collectables Ltd which is the second largest shareholder in FEAH with a 20 per cent interest in the group.
Mowbray confirmed that the New Zealand listed Mowbray Collectables had contributed towards the funding of the acquisition by FEAH of Sotheby's Australia, giving it in effect a franchise for the Sotheby's brand in Australia.
Singer has been FEAH's legal counsel for two months. Goodman explained the group had 82 employees. The acquisition of the Sotheby's brand involved many unusual legal issues that required solution ranging from human resources to property matters which made such an appointment integral.
At one time during this period the group had eight lawyers including Singer working around the clock to sort out and settle legal issues.
Goodman said the funds (conjectured at around $3 million) to buy Sotheby's Australia had been raised from existing shareholders of which he was the principal at 65 per cent and had come from the ANZ.
He would not comment on whether Bonhams with 9 per cent had contributed. However, the industry agrees that this would be a self-evident "no." Bonhams is in competition with Sotheby's worldwide and the last thing it would want to do was support any of its rival's operations by an equity involvement.
Talks are understood to be underway between Goodman and London-based Bonhams to release Bonhams from this dilemma.
Other shareholders in the group include former staff at around 5 per cent.
Singer's mission coincides with the appointment of his partner, Geoffrey Smith, formerly a curator at the National Gallery of Victoria, as vice- chairman of Sotheby's Australia. (He had formerly been head of art at Bonhams and Goodman, the operation which has been superceded by the new Sotheby's Australia.)
Goodman categorically denied that any of "Singer fortunes" either from Gary or his family were involved in the Sotheby's deal, as has been popularly suggested.
A new CEO is needed because of the resignation of Lesley Alway who had been managing director. Lesley Alway resigned as director and Chief Executive Officer of the Heide Museum in Melbourne in January 2008 to join Sotheby's but has now resigned that directorship.
The former chairman over many years of Sotheby's Autralia, Justin Miller; and Sotheby' head of art, Georgina Pemberton, resigned from Sotheby's Australia shortly after the Goodman takeover of Sotheby's to go off into as yet unannounced pastures.
Goodman insisted he would still be calling the shots. "But then why not appoint a chairman and take on the role of managing director himself?" we asked.
He had been involved in management issues for 38 years, Goodman replied. He wanted to concentrate on the side of the business he enjoyed mos,t along with auctioneering. This was developing new business, marketing and media. He certainly did not plan to put his feet up after achieving his long term ambition of taking over locally the leading brand of a major company for which he had worked for in London early in his career.
In a public statement Goodman said:
"The Board of Sotheby’s Australia announced that it will conduct an international recruitment campaign to seek a senior auction executive for the new position of Chief Executive Officer."
"The role will also include Chief Executive Officer at the group holding company, First East Auction Holdings Pty Ltd (FEAL), owner of other iconic auction brands.
"Lesley Alway will not renew her arrangement as Managing Director of Sotheby’s Australia and Chief Operating Officer of First East Auction Holdings Pty Ltd ( FEAL), effective COB February 5.
" Lesley made a commitment to assist with the transition of Sotheby’s Australia following its acquisition by FEAL in October last year and much of this work has now been completed.
"The Board congratulates Lesley for her professionalism and dedication in guiding the organisation through this first phase of the new business plan and wishes her well in her future endeavours."
Goodman said that Sotheby's had an exciting portfolio of business for the year including the Australian and English furniture collection of Dr Keith Oakey and the first sale from the Warren Anderson collection in April/May.
Goodman, his trophy Sotheeby's Australia now secure, may still calls the shots but for the first sale he can hold fire.
From the Anderson collection it will be almost totally dead and stuffed from the beginning - at least in content.
Goodman said it would be the biggest taxidermy sale ever held in Australia.
