Andrea Jung Officially Steps Down as Avon CEO

Andrea Jung’s 12-year term as chief executive officer of Avon Products Inc. ended at the company’s annual meeting today. She is now executive chairman and Sheri McCoy is the new CEO.


“As I end my tenure, what a privilege it’s been to serve as Avon’s leader for the past 12 years,” Jung told shareholders. She turned the focus to McCoy, who joined Avon nine days ago from Johnson & Johnson.


“We have found the right leader to take Avon into the future,” said Jung, who led the meeting and whose usual magnetic stage presence was hampered by dim lighting and a somewhat more subdued presentation. She praised McCoy for her turnaround track record, strategic and operational skills and her motivational capabilities.


ung fielded a handful of questions from shareholders, several of which were sharp in tone. One attendee asked how many shareholders approved Avon’s executive compensation, which was up for vote at the meeting, adding “I wasn’t one of them.” The lone Avon sales representative in attendance scolded Avon — for the second year in a row — for “an egregious lack of social networking tools,” including the ability to “like” certain Avon products on Facebook or to be able text fellow representatives and customers. “This is what word of mouth sounds like today and our tongues are tied,” he said, noting that two of the 10 key selling tools that Avon provides its reps include carbon-paper credit card payment forms and paper brochures. Jung responded that 80 percent of reps place orders digitally, but acknowledged “there’s lots of work to do.” She said McCoy and her team will place digital opportunities at the forefront of their strategy.



“I’m taking a fresh look at every aspects of the business,” McCoy told shareholders. “I will develop a list of five to six key priorities.” On Tuesday, McCoy said she plans to sketch out her strategy for Avon during the company’s next earnings call, which is slated for August. “The company continues to believe strongly that it’s issues are fixable,” said Jung, who since December has faced intense scrutiny from Wall Street analysts and former company CEOs, as well as an endless stream of bad press.