Avon hoping to get a makeover with new CEO

NEW YORK (AP) – Avon is hoping a new CEO can give it a much-needed makeover.

The cosmetics seller has tapped long-time Johnson & Johnson executive Sherilyn S. McCoy as its new chief executive. The announcement ended a four-month search to replace embattled CEO Andrea Jung, who had come under fire for failing to stem the company’s declines and wrap up a bribery investigation.

Avon Products Inc. said Jung – the first female CEO of the 126-year-old company – will remain executive chairman after McCoy takes over later this month. 

McCoy’s emergence at Avon comes less than two months after she was passed over for the top spot at Johnson & Johnson, which in February announced that Alex Gorsky would take over as CEO. Bill Weldon, who has served as J&J’s chief executive for the past decade, plans to step down at the company’s annual shareholder meeting April 26.

The announcement from Avon comes just a week after the company rejected a $10 billion takeover offer from the smaller beauty products maker Coty Inc.

Founded in 1886, Avon became a fixture in households across the country as its legions of “Avon ladies” went door to door selling makeup to family, friends and acquaintances. Its brands include Avon Color, Skin-So-Soft and Mark.

The company markets its products in more than 100 countries through about 6.4 million independent sales representatives. Its annual revenue is more than $11 billion.

Jung, 53, joined Avon in 1994 as president of product marketing. She rose through the ranks to become CEO in 1999 and added the chairman title in 2001. When Avon announced its search for a new CEO this past December, the company said it would separate the CEO and chairman roles.

Expectations will be high when McCoy becomes Avon’s CEO and a board member on April 23. McCoy has 30 years of experience with Johnson & Johnson, where she served as vice chairman of the executive committee and a member of the office of the chairman, with responsibility for brands including Neutrogena, Aveeno and Lubriderm.

Prior to that, she was worldwide chairman of pharmaceuticals.

“Sheri has a unique combination of strategic and finely-honed operational skills, a significant turnaround track record, global experience and people leadership,” Fred Hassan, lead director of Avon’s board, said in a statement.

McCoy’s resignation from Johnson & Johnson, which is effective April 18, will mean she won’t have to sit through that meeting.

Gorsky, who heads the medical devices and diagnostics unit, and McCoy, who heads the pharmaceutical and consumer businesses, had been considered the most likely successors to Weldon after both were named company vice chairmen in January of last year.