04.04.12
Andrea Jung, chairman and chief executive officer of Avon Products Inc., saw her pay fall 23% to $10.1 million last year, the company reported.
In December, the company said that Jung, 53, would step down from the CEO position amid slumping earnings and a foreign-bribery investigation. She will become executive chairman as soon as a replacement is found. On April 2, Avon rejected a $10 billion buyout offer from perfume maker Coty Inc. as too low.
The company’s board debated firing Jung last year amid investigations by the U.S. Securities and Exchange Commission and the Justice Department involving possible violations of the Foreign Corrupt Practices Act.
“We are committed to hiring a new CEO and executing against what the company believes are its strong long-term prospects,” Jennifer Dwyer Vargas, an Avon spokeswoman, said in an e-mailed statement on April 2. “The board has been clear that with a new CEO, it believes there will be greater opportunity to improve shareholder value.
Avon's earnings fell 11.5% last year to $526 million on $11.3 billion in sales.
Avon's earnings fell 11.5% last year to $526 million on $11.3 billion in sales.
Jung will continue as executive chairman for a two-year term with a base salary of $1 million annually and a bonus targeted at 100% of that amount.