Amid shareholder pressure to improve its bottom line, Sotheby's, the New York-based auction house founded in London in 1744, hired Patrick S. McClymont as its chief financial officer starting Oct. 7. He replaced William S. Sheridan, who was with the company for 17 years.<br /><br />The auction house has focused on wealthier clients and private art sales as the market has heated up. A Warhol auctioned by Sotheby's in November fetched an artist record of $105 million. But salary and dealer costs have also grown. Sotheby's narrowed its third-quarter loss with a 58% increase in revenue, to $107.9 million, compared with a year earlier. Income before taxes was down 22%, to $48.8 million, compared with the first nine months of 2012, Mr. McClymont reported in his first earnings call Nov. 11.<br /><br />The leadership change comes after hedge fund Third Point increased its stake in Sotheby's to 5.7%. According to an Aug. 26 SEC filing, Daniel Loeb, Third Point's chief executive, was seeking "potential changes of strategy and leadership." Sotheby's has said the CFO change was unrelated to shareholder activism.<br /><br />Mr. McClymont, 44, a graduate of Cornell University, was most recently a partner and managing director at Goldman Sachs, where he provided strategic advice to clients, including Sotheby's. Mr. Sheridan will remain at Sotheby's through January to support the transition. 