The Eye and Ear Theater Company was founded in 1979 by Ada Katz, wife of the painter Alex Katz; Roy Leaf, vice president of the Skowhegan School of Painting and Sculpture; and theater director Mac McGinnes, as a non-profit theatrical production company.
Inspired by the poet and artist theaters of the 1950s and early 1960s, such as John B. Myers' Artists' Theatre and the Judson Poets Theatre of Greenwich Village, the organization sought to encourage artistic collaboration through Off Broadway productions of plays written by poets with sets and costumes designed by painters and sculptors. It was run by a Board of Directors which was composed of the company's founders along with Bob Holman, Susan Davis, Beth DeWoody, George Schneeman, and later Joanne Cassulon, Mark Charles, James Kraft, Rosie Levai, Michael O'Brian, and Paul Chupf. The Board dealt with fundraising, production, administration, and publicity. It also set the company's artistic goals, and in pursuing them relied on the assistance of an Advisory Board, which included noted poets, choreographers, and artists like John Ashbery, Edwin Denby, Laura Dean, Paul Taylor, Red Grooms, and Jennifer Bartlett. The members of both bodies were volunteers who contributed resources like office space and secretarial services in addition to their time. Their work would be supported by a paid administrative staff beginning in 1985. The poets and artists were paid for their work and the sets and costumes used in the company's productions remained the property of the theatre company, which on occasion lent them to art exhibitions. Much of the organization's funding came from individuals, corporations, and foundations, as well as state and federal grants, including The National Endowment for the Arts, the Lila Acheson Wallace Fund, the Samuel and May Rudin Foundation, the Kulcher Foundation, the Leonhardt Foundation, and the Foundation for Contemporary Performance Arts.