Market Nexus: Frick Appoints Sotheby's Vice Chairman to Its Board

George Wachter, Sotheby's old masters specialist

The Frick Collection, New York, has just taken the unorthodox step of appointing to its board an auction-house official, George Wachter (above), vice chairman of Sotheby's North and South America and co-chairman of old master paintings---the mainstay of the Frick's holdings.

Many museums refrain from appointing art dealers or auction-house officials to their boards because of the possible conflicts between a nonprofit's best interests and a market professional's commercial self-interest. Also problematic is the potential for misuse of the museum's prestige to boost the standing of one gallery or auction house over its competitors. Museums need to participate in the market as acquirers and sometimes as sellers, yet they must maintain their proper position of being a scholarly step removed from the commercial fray.

I have mixed feelings on the question of whether market players should be on museum boards: I believe that there IS a conflict of interest that would have to be vigilantly monitored if a dealer or auction-house official were granted a seat. But one would never say that active collectors should be barred from such positions, and they too have obvious potential conflicts of interest to be guarded against. There is undeniable value in having some people overseeing museums who are market-savvy.

However, I have no mixed feelings whatsoever about how the Frick chose to present Wachter in its press release announcing his appointment. The glowing description of Wachter's market exploits reads like a promotional blurb for Sotheby's, tainting the appointment as unseemly, however noble its intent:

With a strong knowledge of the market, enthusiasm for Old Master paintings, and a gift for developing strong client relationships, Wachter has played a significant role in expanding the North American market to be one of the dominant centers that it is today.

Under his leadership, the Sotheby's January 2007 Important Old Masters sale realized $110 million at auction. This auction still holds the world record for any Old Masters sale in history, outpacing the noteworthy sale in London (July 10, 2002) where Sotheby's sold a Sir Peter Paul Rubens, "The Massacre of the Innocents," for a remarkable $75 million.

Wachter has also played a major role in the sale of the most important collections of Old Master paintings ever to come to auction, including paintings from the Estate of Peter Jay Sharp; the Estate of Walter P. Chrysler, Jr; the Collection of the Late Count and Countess Guy du Bouisrouvray; the Collection of Jaime Ortiz Patiño; and numerous others.

This is great hype for Sotheby's. But what it has to do with the best interests of the Frick is anyone's guess. Interestingly, the collections cited in the preceding paragraph are taken directly from the profile of Wachter on Sotheby's website, but one collection mentioned in that bio was omitted---the works deaccessioned in 1995 by the New-York Historical Society.

I suppose that the Frick and/or Wachter prudently decided that an allusion to his role in that highly controversial museum sell-off might not add to his allure as a new member of the museum's board.