Thursday, December 29, 2011

Avon to Split CEO, Chairman Roles

Avon Products, Inc. announced that in 2012 the company will separate the roles of chairman and CEO. The company said Andrea Jung, Avon's chairman and CEO, will be named executive chairman, and that a committee of the board of directors will work with Jung to undertake an external search for a CEO. Jung will continue to serve in her dual roles throughout the recruitment process and will work closely with the new CEO to assure a successful transition.

"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 12 years we have transformed the business from a decentralized group of local operating entities to a globally managed business in more than 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."

Fred Hassan, managing director and partner, Warburg Pincus LLC, and Avon's lead independent director added, "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."

Jung said that in her role as executive chairman she will work closely with the new CEO in support of the company's overall strategic direction and brand positioning. She will continue to be involved in maintaining strong relationships with Avon's key constituencies, including her role in motivating the company's millions of representatives, and her advocacy on behalf of the Avon Foundation for Women.



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