logo
Share SHARE
FONT-SIZE Plus   Neg

Avon Taps Johnson & Johnson's Sherilyn McCoy As CEO - Update

Cosmetics maker Avon Products, Inc. (AVP), which last week rejected a cash bid worth about $10 billion from fragrance maker Coty, Inc., on Monday appointed Sherilyn McCoy as Chief Executive Officer as it aims to execute strong long-term prospects.

McCoy, a 30-year veteran at drug and healthcare major Johnson & Johnson (JNJ), will join Avon on April 23 to succeed Andrea Jung. McCoy, who holds four U.S. patents, will also serve as a director on Avon's Board. Jung, who has been Avon's CEO since 1999, will continue to serve the company as Executive Chairman.

While rejecting Coty's unsolicited bid on March 2 deeming it as "opportunistic and not in the best interest of Avon's shareholders" Avon had said that it remains confident in its prospects as a stand-alone company and remains committed to executing against what it believes are its strong long-term prospects. Avon has been searching for a new CEO after it separated the roles of Chairman and CEO in 2012.

Commenting on the appointment, Avon's lead director Fred Hassan said, "Given her consistent record of outperforming against new challenges, we have great confidence that under Sheri's leadership Avon can successfully execute against our strong long-term prospects."

At Johnson & Johnson, McCoy is currently Vice Chairman of the Executive Committee with responsibility over Pharmaceutical, Consumer, Corporate Office of Science & Technology, and Information Technology divisions. She joined the company in 1982 as a scientist and was appointed to her current responsibilities in January, 2011.

While noting that McCoy would resign from the firm effective April 18, JNJ Chairman and CEO William Weldon said, "During these last several years, she was instrumental in helping to bring stronger strategic focus to our Pharmaceutical business as it builds a robust pipeline and launches important new medicines; and to our Consumer business as it leverages the success of its iconic brands and worked to resolve some recent challenges."

In pre-market activity, Avon shares lost $0.62 or 2.65 percent and are currently trading at $22.80, while JNJ shares lost $0.43 or 0.66 percent and currently at $64.91.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Bank of Nova Scotia or otherwise known as Scotiabank, Friday reported lower net profit for the third quarter, in the absence of a year-ago gain. Earnings per share, however, came in line with the Street view. Further, the company said it raised its quarterly dividend by 2 cents. Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent. Google has rejected the European Union's charges that it abused its market power and the demanded that it change the way it ranks online comparison shopping services in its search results, setting up a potentially long legal battle with the EU regulator empowered to levy billions of euros in fines
comments powered by Disqus
RELATED NEWS
Trade AVP now with 
Follow RTT