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Will move to executive chairman after a replacement is named.
December 13, 2011
By: TOM BRANNA
Editor
Wracked by poor results in emerging markets and corporate governance issues, Andrea Jung will step down as chief executive officer of Avon Products Inc. next year and transition into the role of executive chairman once a successor is found. The move separates the offices of chairman and CEO, both of which Jung currently hold. “I believe the time is right to separate the Chairman and CEO roles and I look forward to continuing to serve Avon as Chairman as we address the company’s growing scale and opportunities,” said Jung, who has been Avon’s CEO since 1999. “Over the past twelve years we have transformed the business from a decentralized group of local operating entities to a globally-managed business in over 100 countries with global brands and a global operating model. In the process, revenues have more than doubled, and the number of Representatives has doubled as well. As we look to the future, Avon’s business model remains advantaged, with both the Beauty and Direct Selling industries growing around the world, and with our broad, geographic footprint. A new CEO will provide a fresh lens and additional operational and executive leadership.”Avon’s board plans to work with Jung as it searches for a new CEO. Fred Hassan, managing director and partner at private equity firm Warburg Pincus and Avon ‘s lead independent director, said: “Avon’s board of directors fully supports Andrea and appreciates her commitment to continue to serve the company as executive chairman and assure a smooth and successful management transition. Separating the chairman and ceo roles as well as strengthening overall management capabilities are important steps to help the company capture its future opportunities. The board looks forward to continuing to work closely with Andrea and the new ceo to put the company back on a growth track.” Avon has recently seen weakness in major developed markets, stumbled in key developing markets and been beset by corporate governance issues, including investigations by the Securities and Exchange Commission regarding the company’s dealings with Wall Street analysts and its compliance with the Foreign Corrupt Practices Act.
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